Core Viewpoint - BitFuFu Inc. is set to report its unaudited financial results for Q2 2024 on August 20, 2024, before U.S. markets open [1] Group 1: Financial Reporting - The earnings conference call will take place at 8:00 A.M. U.S. Eastern Time on August 20, 2024 [2] - Participants must register in advance to join the conference call, receiving a confirmation email with dial-in numbers and a unique access PIN [2] Group 2: Company Overview - BitFuFu is recognized as a fast-growing digital asset mining service and a leading cloud-mining service provider [4] - The company has received early investment from Bitmain and remains its sole strategic partner in the cloud mining sector [4] - BitFuFu aims to provide secure, compliant, and transparent blockchain infrastructure, offering various digital asset mining solutions to a global customer base [5]

SINGAPORE, May 20, 2024 (GLOBE NEWSWIRE) – BitFuFu Inc., ("BitFuFu" or "the Company") (NASDAQ: FUFU), a fast- growing digital asset mining service and world-leading cloud-mining service provider, today announced its unaudited financial results for the first quarter ended March 31, 2024. Exhibit 99.1 BitFuFu Inc. Reports Unaudited First Quarter 2024 Financial Results First Quarter 2024 Operational Highlights | | As of March 31, | | | --- | --- | --- | | | 2024 | 2023 | | Metric | | | | Hosting capacity (MW) ...

Revenue and Financial Performance - Revenue increased from US$103.0 million in 2021 to US$198.2 million in 2022, and further to US$284.1 million in 2023, reflecting significant growth[35] - Cost of revenue incurred was US$94.0 million, US$162.0 million, and US$271.4 million in 2021, 2022, and 2023, respectively, with gross profit margins of 8.8%, 18.3%, and 4.5%[61] - Net profit realized was US$4.9 million, US$2.4 million, and US$10.5 million in 2021, 2022, and 2023, respectively[61] Digital Asset Market Volatility - The price of Bitcoin fluctuated between approximately US$30,000 to US$68,000 in 2021, US$16,000 to US$46,000 in 2022, and US$17,000 to US$44,000 in 2023, indicating high volatility in the digital asset market[39] - The company recorded a significant drop in the price of Bitcoin, which adversely affected the demand for its cloud-mining services and profitability[39] - The price of Bitcoin has shown significant volatility, ranging from approximately US$30,000 to US$68,000 in 2021, and from approximately US$17,000 to US$44,000 in 2023[131] Impairment and Losses - Impairment losses on digital assets were recorded at US$12.9 million in 2022 and US$7.0 million in 2023 due to significant drops in Bitcoin prices[41] - The company recorded an impairment loss of $9.8 million on assets held by FTX in 2022 due to the bankruptcy of the exchange[97] - The company has suspended transactions with FTX following its bankruptcy filing, where it had deposited $2.1 million and 480 Bitcoins[97] Customer and Supplier Risks - The company faces risks related to customer concentration and reliance on a limited number of suppliers for critical services and products[30] - Revenue from the largest customer, Chainup Technic Limited, accounted for 30%, 17%, and 15% of total revenue in 2021, 2022, and 2023, respectively, while sales to the top three customers accounted for 51%, 31%, and 26%[53] Regulatory and Compliance Risks - The company is subject to various regulatory risks that could impact its operations and market position in the digital asset industry[33] - The company must comply with various regulatory requirements, and failure to obtain necessary approvals could materially affect operations and financial results[88] - The company may encounter compliance issues with regulatory bodies, potentially leading to legal proceedings and adverse effects on operations[99] - Regulatory scrutiny on digital assets has intensified, particularly following the bankruptcy of FTX and other companies, leading to increased compliance costs and operational adjustments[149] Operational Challenges - The company faces risks associated with global expansion, including high investment costs and competition from established players[62] - The company is capital intensive, and failure to secure necessary capital may delay or limit expansion efforts, impacting financial results[72] - The company requires additional facilities to increase capacity for mining equipment, which may lead to increased operational costs and challenges in maintaining profit margins[74] Cybersecurity and Asset Protection - The company relies on third-party custodial wallets for safeguarding customer digital assets, which may not be adequately protected against theft[92] - The company may face significant costs related to cybersecurity threats, which could disrupt operations and adversely affect its reputation and financial results[80] - The company faces risks associated with the loss or destruction of private keys, which could result in irretrievable loss of digital assets[95] Market and Competitive Landscape - Competition in the digital asset industry is expected to intensify, with existing and new competitors introducing new products and enhancing services[46] - The digital asset industry is characterized by rapid technological evolution and constant changes in customer demands, which the company must navigate to remain competitive[37] Environmental and Economic Factors - Concerns about greenhouse gas emissions may lead to environmental taxes or penalties, impacting the company's financial condition and results of operations[124] - The company is vulnerable to global economic downturns, which could negatively impact the prices of digital assets and overall business performance[77] Shareholder and Corporate Governance - The company may issue additional Ordinary Shares without shareholder approval, which could dilute existing ownership and depress share price[199] - The board of directors has complete discretion regarding dividend distribution, with no guarantee of share price appreciation or avoidance of decline[208] - Shareholders have limited rights to inspect corporate records and accounts under Cayman Islands law[219] Future Outlook and Strategic Considerations - The company may need to adjust its pricing strategy in response to fluctuations in digital asset prices and market demand[40] - Future acquisitions or strategic alliances may disrupt operations and increase expenses, with uncertain outcomes regarding their success and integration[79] - The difficulty of digital asset mining is expected to increase with the supply of mining equipment, which could negatively affect the economic returns of mining activities and demand for the company's services[126]

Financial Performance - Revenues increased from $102,260 in 2020 to $198.2 million in 2022, and for the six months ended June 30, 2023, revenues were $134.2 million, reflecting a growth trend[39]. - Finfront incurred a cost of revenue of US$162.0 million in 2022, with a gross profit margin of 18.3%[65]. - The company achieved a net profit of US$7.8 million in the six months ended June 30, 2023, following a net profit of US$6.6 million in the same period of 2022[65]. - Finfront's gross profit margin decreased from 11.4% in 2020 to 8.0% in the six months ended June 30, 2023[65]. Asset Management - As of September 30, 2023, the company's total equity was approximately $73.2 million, with cash and cash equivalents amounting to $105.2 million[34]. - The total value of USDT held by the company for its own account and safeguarding assets was approximately $55,515 as of December 31, 2022, and $48,183 as of June 30, 2023[50]. - The company holds 5.3 Bitcoins and approximately 17,760 USDTs to be returned to customers as of February 6, 2024[94]. - The company has experienced a decline in the value of digital assets held for customers, with no assets held as of June 30, 2023[92]. Market Risks - The price of Bitcoin fluctuated significantly, ranging from approximately $30,000 to $68,000 in 2021, and from approximately $16,600 to $30,500 in the first half of 2023, impacting the company's operations[45]. - The company recorded an impairment loss on digital assets of $12.9 million in 2022 due to a significant drop in Bitcoin prices[49]. - The company faces significant risks related to power costs, which are a major component of its cost of revenue[61]. - The company faces risks from potential changes in blockchain transaction validation methods, which could harm its self-mining business and reduce demand for cloud-mining services[127]. Operational Challenges - The company faces risks related to power supply, including increases in power costs and outages, which could adversely affect operations[37]. - The company relies on a limited number of suppliers for critical products and services, which poses a risk to its operations[37]. - The company has experienced rapid growth in cloud-mining capacity since its establishment in December 2020, which may not be indicative of future performance due to limited operating history[39]. - The average selling prices of services and products may fluctuate, potentially adversely affecting profitability[64]. Regulatory Environment - Regulatory changes regarding digital assets in the United States and Singapore could impose restrictions on operations and lead to a decline in customer orders[122]. - The SEC has indicated that certain digital assets may be classified as securities, which could require compliance with federal securities laws[168]. - The evolving regulatory landscape may lead to uncertainties regarding whether cloud mining operations will be classified as securities, impacting business operations[164]. - The IRS classifies digital assets as property, which affects tax treatment and compliance requirements[167]. Legal and Compliance Risks - The company may face legal disputes, including a lawsuit related to a creditor claim against FTX's bankruptcy estate, which could result in material losses[100]. - The company is subject to compliance with OFAC's sanction program, which may increase compliance costs and affect transaction fees[181]. - The company may incur significant legal and compliance costs as a public entity, impacting its financial resources[117]. - The company identified a material weakness in its internal control over financial reporting, which could impact its ability to accurately report financial results[114]. Strategic Considerations - Expansion into new markets may expose the company to various risks, including regulatory compliance and competition[66]. - The company plans to grant up to 7,500,000 Ordinary Shares under its 2022 Share Incentive Plan, which may affect its results of operations[112]. - The company may face difficulties in establishing relationships with financial institutions, which could adversely affect its business and financial condition[180]. - The company may face significant challenges in protecting its intellectual property rights, which could adversely affect its business and financial condition[106]. Shareholder Considerations - The company does not expect to pay dividends in the foreseeable future, as it plans to retain available funds for business development and growth[204]. - The board of directors has complete discretion over dividend distribution, which will depend on future operational results and financial conditions[205]. - The company may issue additional Ordinary Shares without shareholder approval, potentially diluting existing ownership interests[196]. - The trading market for the Class A Ordinary Shares may decline if securities and industry analysts do not publish research or provide unfavorable reports[206].