BitFuFu, a cloud mining company affiliated with Bitmain, has released an unaudited financial and operational report on its second-quarter 2024 results, which ended on June 30. The report reveals a significant increase in Bitcoin mining costs, alongside growth in the company's capacity and revenue.
Bitcoin mining cost surge
Among the statistics reported by BitFuFu in its Q2 report, the most dramatic change was the average cost required to mine each BTC, surging to $51,887. The sharp price rise can be seen when compared to $19,344 per mined BTC in the same period in 2023 and can be attributed to higher electricity and operational costs, as well as the April 2024 BTC halving event, which increased mining difficulty while BTC rewards were cut by 50%.
Capacity and revenue growth
Although the firm’s BTC mining costs significantly increased, BitFuFu expanded its mining operations’ scale. With the increase to 24.7 exahashes per second (EH/s), the BTC mining company increased the capacity of its operations by over 60% amid the mining-related cost surge. The BTC mining firm also reported an almost 70% increase in total revenue, reaching $129.4 million in Q2 2024, up from $76.3 million in the same period in 2023. The revenue growth can be attributed to the company’s expansion of its cloud-mining services, which generated $77 million during the reporting period.
BTC analysts optimistic
In an Aug. 19 interview with CNBC, Matthew Sigel, head of digital assets research at VanEck, explained that «forced selling BTC appears to be behind us». Sigel explained that the current state of the crypto market and BTC price is a typical seasonal pattern characterized by «one to three months» post-halving. The forced selling included the German government selling 49,858 BTC for $2.6 billion amid Mt. Gox creditor repayments being issued.
BitFuFu's Q2 2024 report shows a significant increase in Bitcoin mining costs. Despite this, the company successfully expanded its operations and increased revenues. Analysts remain optimistic about the further growth of the cryptocurrency market.
Comments