Summary of BitFuFu Inc. Conference Call Company Overview - **Company Name**: BitFuFu Inc. - **Ticker Symbol**: FUFU (NASDAQ) - **Industry**: Bitcoin mining and mining services - **User Base**: Over 648,000 users on the cloud mining platform as of November 2025 [2] Key Financial Metrics - **Computing Power**: Manages 26.4 exahash for Bitcoin mining with a total capacity of 478 megawatts as of November 30 [3] - **Bitcoin Holdings**: Holds over 1,700 Bitcoin [3] - **Revenue Growth**: Cloud mining revenue increased by 78% year-over-year [11] - **Self-Mining Revenue**: Decreased by 2% due to halving impacts and reallocation of computing power to cloud mining [11] - **Mining Rig Sales**: Recorded $36 million in sales for the quarter, a significant increase from the usual $5-6 million [11][12] - **Adjusted EBITDA**: Over $22 million, up from $6 million in the prior year [12] Business Model - **Self-Mining vs. Cloud Mining**: - Self-mining constitutes about 30% of the business, while cloud mining dominates the remaining 70% [3][4] - Cloud mining involves leasing hash rate to institutional and retail customers, with a majority being institutional [4][5] - **Customer Experience**: Customers can select mining power capacity and duration, with Bitcoin mined going directly to their wallets [5][6] Operational Strategy - **Infrastructure**: - Hosting capacity is distributed across three continents: 239 megawatts in the U.S., 235 megawatts in Ethiopia, and 4 megawatts in Brazil [6][7] - The company aims to acquire more owned data centers to reduce costs and increase operational control [7][9] - **Efficiency**: The company guarantees 95% uptime, with actual performance around 98-99% [10] Future Outlook - **Growth Strategy**: - Plans to increase computing capacity to 28-32 exahash by year-end 2025, with a target power capacity of 550-600 megawatts [18][19] - Actively seeking additional capacity through potential M&A transactions [16][17] - **Market Demand**: Demand for cloud mining remains strong, with challenges in meeting capacity [15][16] Additional Insights - **Market Position**: BitFuFu has been profitable every year since its inception, a notable achievement in the mining industry [13] - **Flexibility in Operations**: The company adjusts its focus between cloud and self-mining based on Bitcoin market conditions [15] This summary encapsulates the key points discussed during the conference call, highlighting BitFuFu Inc.'s operational strategies, financial performance, and future growth plans.

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $169.7 million, representing a 173.6% increase year-over-year and a 9.1% increase sequentially [4][17] - Gross profit was $40.8 million, with a gross margin of 24.1%, compared to 4.5% in Q3 2024 and 8.2% in Q2 2025 [17][18] - Adjusted EBITDA was positive $43 million, a significant improvement from negative $7.9 million in Q3 2024 [21] - Net loss for the quarter was $266.7 million, compared to $50.1 million in Q3 2024 [20][24] Business Line Data and Key Metrics Changes - Self-mining revenue was $130.9 million, up 315.6% year-over-year and 120.7% sequentially, driven by a 273.1% year-over-year increase in self-mining hash rate [17][21] - Seal Miner sales revenue was $11.4 million, compared to $0 in Q3 2024 and $69.5 million in Q2 2025 [17] Market Data and Key Metrics Changes - The average operating self-mining hash rate increased to 29.1 exahash per second, a 273.1% year-over-year and 105.4% sequential increase [5][17] - As of the end of October, the company achieved 41.2 exahash per second, surpassing its target of 40 exahash per second [6] Company Strategy and Development Direction - The company aims to transition from a Bitcoin mining leader to a vertically integrated Bitcoin infrastructure and AI platform [4] - Future growth will focus on three strategic pillars: Bitcoin mining, ASIC development, and HPC AI [7] - The company plans to develop data centers using its internal team and strategic hiring, moving away from a joint venture model [8][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth in self-mining and AI cloud services, anticipating significant demand in both sectors [12][78] - The supply and demand imbalance for AI compute is expected to persist well into 2027, with potential revenue exceeding $2 billion by the end of 2026 from AI cloud services [12][78] Other Important Information - The company has a total available electrical capacity of approximately 1.6 gigawatts and a global power pipeline of about 3 gigawatts [14] - The company is actively seeking low-cost power sites globally to reinforce its competitive advantage [15] Q&A Session Summary Question: What is the progression of the HPC opportunity? - Management confirmed simultaneous expansion in Malaysia and the U.S. for AI cloud services [36] Question: Are all AI services focused on NVIDIA? - Currently, all AI initiatives are largely NVIDIA-based, with no plans to develop proprietary AI chips [39] Question: What was the process for acquiring the Niles, Ohio site? - The Niles site was strategically acquired to provide long-term optionality, with energization expected in Q1 2029 [41] Question: What caused the delay in the Seal 04 miner chip? - The delay is due to the complexity of implementing new architecture and design changes [46] Question: How will the company decide between cloud service and co-location? - The primary focus is on AI cloud services, with co-location being opportunistic [54] Question: What is the expected return on invested capital for cloud services versus co-location? - The return profiles differ significantly, influenced by construction costs and end-user requirements [95]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $155.6 million, up 122% sequentially from Q1 and up 57% year over year [8][20] - Gross profit was $12.8 million, with an adjusted EBITDA of $17.3 million, showing significant improvement from Q1 [8][27] - Self mining revenue reached $59.3 million, a 42.5% increase year over year and a 59.4% increase sequentially [21] - Total operating expenses were $42.3 million, up from $26.1 million in Q2 2024, primarily due to R&D costs [25] Business Line Data and Key Metrics Changes - Self mining hash rate increased by 103.3% year over year and 45.5% sequentially, contributing to revenue growth [21] - Sales revenue from SealMiner ASICs was $69.5 million, compared to $0 in Q2 2024 [21] - Cloud Hash Rate revenue declined to $0, down from $12.2 million in Q2 2024, due to the expiration of long-term contracts [22] Market Data and Key Metrics Changes - The average operating hash rate increased by 46% to 14.2 exahash in Q2 from 9.7 exahash in Q1 [8] - The self mining hash rate further grew to 22.3 exahash as of July 2025, representing a 162% increase from the beginning of the year [9] Company Strategy and Development Direction - The company is focused on a vertically integrated and technology-driven growth strategy, investing in chip design, supply chain, and manufacturing [9][10] - Plans to achieve a self mining hash rate of 40 exahash by October 2025, with expectations to exceed this target by year-end [10][18] - The company is also developing the CLO4 chip, targeting breakthrough efficiency for Bitcoin mining and other high-performance applications [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong momentum and a solid foundation for growth [9][11] - The company anticipates record results on a run rate basis by the end of the year, setting a strong foundation for 2026 and beyond [11][19] - Management highlighted the importance of energy efficiency and performance leadership in the competitive landscape [11][12] Other Important Information - The company has energized 361 MW of data center capacity for self mining as of July 2025, with plans to increase total available power capacity to nearly 1.6 GW [15][16] - The company is in advanced negotiations for a development partner for its HPC AI initiative in Clarington, Ohio [17][18] Q&A Session Summary Question: What is the risk around construction at the Clarington site? - Management indicated that capital requirements would be minimal and provided through the partner, with construction loans on top [34] Question: How is the demand for ASIC production evolving? - Management noted increased demand due to rising hash prices and Bitcoin prices, contributing to a stronger market [36] Question: What is the current status of the HPC initiative? - The focus is on a build-to-suit approach, with flexibility depending on the final customer for the site [41] Question: What is the balance between self mining and external sales for SealMiners? - The company prioritizes internal use for self mining due to high margins, with a gradual transition to external sales as internal capacity fills up [52] Question: What is the outlook for ASIC prices based on current market dynamics? - Management stated that pricing for the A3 chip will be competitive, with significant efficiency advantages [48] Question: What is the customer composition for SealMiner sales? - The sales have been a mix of both public and private miners, with a focus on distributing units for market feedback [109]

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $70.1 million, down from $119.5 million in Q1 2024, primarily due to the impact of the 2024 halving and increased global network hash rate [7][20] - Gross profit was negative $3.2 million compared to positive $34.1 million, resulting in a gross margin of negative 4.6% versus 28.6% [22] - Adjusted EBITDA was negative $56.1 million compared to positive $27.3 million in the previous year [22] - Net cash used for operating activities was $284 million, driven mainly by supply chain and manufacturing costs [23] Business Line Data and Key Metrics Changes - Self-mining revenue decreased by 23.1% to $37.2 million, impacted by the halving event and increased global hash rate [20] - Cloud hash rate revenue fell to $100,000 from $18.1 million due to the expiration of long-term contracts [21] - General hosting revenue dropped to $9.6 million from $29 million, while membership hosting revenue decreased to $16.3 million from $19.5 million [21] Market Data and Key Metrics Changes - The company is focusing on geographic diversification, with over half of its new power capacity located in Norway and Bhutan [8] - The company expects to reach a self-mining hash rate of 40 exahash per second by October 2025, driven by new power capacity and ASIC production [14][68] Company Strategy and Development Direction - The company is prioritizing the development of its own ASIC technology, which is expected to provide long-term advantages and cost efficiencies [7] - Plans to migrate a portion of manufacturing to the U.S. in the second half of 2025 are underway, aiming to capitalize on favorable tariff policies [10] - The company is also exploring opportunities in high-performance computing (HPC) and AI, with ongoing discussions for potential partnerships [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Bitcoin mining rigs, anticipating continued growth in the market [10] - The company is optimistic about the impact of recent trade negotiations on U.S. manufacturing for Bitcoin mining [9] - Management acknowledged uncertainties in capacity availability due to market dynamics but remains confident in their partnerships with TSMC [32] Other Important Information - The company signed a 50-megawatt mining data center agreement in Ethiopia, targeting energization by Q4 2025 [16] - The total available power capacity is expected to reach over 1.8 gigawatts by the end of 2025, including new projects in Ohio and Ethiopia [17] Q&A Session Summary Question: Interest in A2 and chip demand changes - Management noted increased interest in purchasing mining ASICs following recent market developments, but self-mining remains a priority [31] Question: 40 exahash target considerations - Management indicated that the target is influenced by machine availability and power capacity, with confidence in meeting the goal [32] Question: Demand for Clarington site and customer interest - The focus is on securing a development partner for the Clarington site, with inbound interest from potential end users [36] Question: Recent loan agreement rationale - The company is cautious about dilution and sees responsible debt as a viable option for financing chip purchases [37] Question: Strategy for Seal A4 ASIC - The company plans to transition to external sales as internal capacity fills up, with expectations for significant external sales once production ramps up [41] Question: Power cost trends - Q1 typically sees higher power prices, but management expects lower costs in Q2 and Q3 due to improved power supply strategies [46] Question: ASIC machine performance tracking - Customers can expect to test the efficiency of the new ASIC machines starting in October [50] Question: Average fleet efficiency targets - Management anticipates average efficiency to improve as newer rigs are deployed, with expectations for lower energy consumption in the future [55] Question: Tariff impact on external sales strategy - Management believes tariffs will not significantly hinder operations, with plans to adapt manufacturing strategies accordingly [78] Question: Customer interest trends and global sales composition - U.S.-based miners continue to dominate the market, but there is potential for increased international sales as the market evolves [86]

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $70.1 million, a decrease from $119.5 million in Q1 2024, primarily due to the impact of the 2024 halving and increased global network hash rate [6][19] - Gross profit was negative $3.2 million compared to positive $34.1 million in the previous year, resulting in a gross margin of negative 4.6% versus 28.6% [21] - Adjusted EBITDA was negative $56.1 million, down from positive $27.3 million in Q1 2024 [21] - Net cash used for operating activities was $284 million, driven mainly by supply chain and manufacturing costs [22] Business Line Data and Key Metrics Changes - Self-mining revenue was $37.2 million, down 23.1% year-over-year, influenced by the halving event and increased global hash rate [19] - Cloud hash rate revenue fell to $100,000 from $18.1 million due to the expiration of long-term contracts [20] - General hosting revenue decreased to $9.6 million from $29 million, while membership hosting revenue dropped to $16.3 million from $19.5 million [20] Market Data and Key Metrics Changes - The company is focusing on geographic diversification, with over half of its new self-mining power capacity located in Norway and Bhutan [7] - The company anticipates a self-mining hash rate of 40 exahash per second by October 2025, supported by new power capacity coming online [13] Company Strategy and Development Direction - The company is prioritizing the development of its own ASIC technology, which is expected to provide long-term advantages and cost efficiencies [6][12] - Plans to migrate a portion of manufacturing to the U.S. in the second half of 2025 are underway, aiming to capitalize on favorable tariff policies [9] - The company is also exploring opportunities in high-performance computing (HPC) and AI, with ongoing discussions for development partnerships [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Bitcoin mining rigs, anticipating continued growth in the market [9][12] - The company is optimistic about the impact of recent trade negotiations on tariffs, which may encourage more Bitcoin mining-related manufacturing in the U.S. [8] - Management acknowledged the uncertainty in capacity availability due to market dynamics but remains confident in their partnerships with technology providers [31] Other Important Information - The company signed a 50-megawatt mining data center agreement in Ethiopia, targeting energization by Q4 2025 [14] - A loan agreement for up to $200 million was established to finance chip purchases, secured by the miners themselves [26][72] Q&A Session Summary Question: Interest in ASIC chips and demand changes - Management noted increased interest in purchasing mining ASICs following recent market developments, but self-mining remains the priority [30] Question: Clarington site development and customer demand - The focus is on securing a development partner for the Clarington site, with inbound interest from potential end users [35] Question: Capital structure and loan agreement rationale - The decision to enter a loan agreement was influenced by market conditions, with a focus on minimizing dilution while financing growth [36] Question: ASIC sales strategy and external sales capacity - The company plans to transition to more external sales as internal capacity fills up, with expectations for significant external sales of the A4 ASICs [40] Question: Power costs and future trends - Q1 typically sees higher power prices, but management expects lower costs in Q2 and Q3 due to improved power supply strategies [46] Question: Customer interest and tariff impacts - Management believes that U.S. miners will continue to expand operations despite potential tariff challenges, with a strong capital market supporting growth [86]