FUFU — BitFuFu Inc.

Summary of BitFuFu's Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $72.7 million, reflecting a 6.8% year-over-year decline.
  • Cloud Mining Revenue: $57.5 million, up 7.1% year-over-year, accounting for 79.1% of total revenue.
  • Self-Mining Revenue: $11.4 million, down 35.2% year-over-year.
  • Hosting and Other Services: Increased to $3.8 million from $0.7 million in Q1 2025.
• Cost of Revenue: $72.3 million, up 1.0% year-over-year.
• Net Loss: $35.0 million, compared to a loss of $16.9 million in the same period last year; primarily driven by $35.6 million in fair value losses on Bitcoin holdings.
• Adjusted EBITDA: Approximately positive $1.1 million, excluding fair value losses.
• Cash and Digital Assets: $141.5 million as of March 31, 2026, down from $177.1 million at year-end.
• Bitcoin Holdings: 1,794 Bitcoin, with 357 Bitcoin pledged as collateral.

2. Strategic Updates and Business Highlights:

• The company emphasized a dual engine model, balancing cloud mining stability with self-mining upside.
• Focused on operational discipline, cost control, and efficiency improvements, achieving an average fleet efficiency of 17.7 joules per terahash.
• Reduced self-mining exposure to preserve liquidity and mitigate risks during market volatility.
• Implemented multiple layers of cost control, including optimizing staffing and consolidating logistics.
• Maintained a strong liquidity position supported by a $100 million revolving credit facility, with $50 million outstanding at quarter-end, reduced to $5 million post-quarter.

3. Forward Guidance and Outlook:

• Plans to optimize procurement by increasing the portion of longer-term hashrate contracts while maintaining short-term agreements.
• Focus on capital efficiency and disciplined equity issuance, aiming to fund growth through operating cash flow and selective Bitcoin sales.
• Strategic evaluation of opportunities in real-world assets and energy, aligned with core economics and risk profile.
• Management expressed confidence in the business's resilience and ability to navigate through cycles, with expectations for improved operational performance in upcoming quarters.

4. Bad News, Challenges, or Points of Concern:

• Gross margin pressures due to increased network difficulty and lower Bitcoin prices, alongside higher costs from previously procured hashrate contracts.
• Significant net loss attributed to fair value losses on Bitcoin holdings, indicating vulnerability to market fluctuations.
• Decline in self-mining revenue raises concerns about the sustainability of this segment in a volatile market.

5. Notable Q&A Insights:

• The call did not include a Q&A session; however, management emphasized their commitment to transparency and encouraged stakeholders to submit questions via email for timely responses.

Overall, BitFuFu's Q1 2026 results reflect a proactive approach to managing market volatility, with a focus on operational efficiency and strategic positioning for future growth despite facing significant challenges in the current market environment.