BitFuFu Inc.

Good day and thank you for standing by. Welcome to BitFufu's full year 2024 earnings conference call. All participants are in a listen-only mode. Please be advised today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Charlie Brady, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, ladies and gentlemen, and welcome to BitFufu's full year 2024 earnings call. The company's financial results were released earlier today and are available on the BitFufu Investor Relations website at ir.bitfufu.com, as well as on the globalnewswire.com website. Joining me today on the call are Leo Liu, Chairman and CEO, and Kal Azau, Chief Financial Officer. Before we begin, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from management's current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in the company's public filings with the SEC. The company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. We will be discussing non-GAAP financial information on this call. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release. One final note, although we will not be conducting a Q&A on this call, questions can be emailed to ir at bitfufu.com and we will respond as quickly as possible generally within 24 hours. I'll now turn the call over to Leo Liu, the company's chairman and chief executive officer.

Good morning, and thank you for joining us. Today, I'm excited to share BitFuFu's full year 2024 performance and provide updates on strategic growth initiatives. 2024 was a pivotal year for both Bitfufu and the Bitcoin mining sector. We successfully listed on NASDAQ in March, expanded our hosting and Bitcoin mining capacity, and began transitioning to owning data center assets in Q4. In terms of mining services, our cloud mining platform saw tremendous growth in 2024. We have offered more mining services to our customers, including the development of our proprietary mining site management system, the launch of the Bitfufu OS operating system providing overclocking and underclocking services, and the introduction of Bitfufu Pool, a mining pool in collaboration with third-party institutions. Despite the Bitcoin halving event, which reduced the Bitcoin block subsidy from 6.25 to 3.125 Bitcoin, Bitfufu achieved strong year-over-year revenue growth across both cloud mining and self-mining operations. In 2024, we achieved $463.3 million total revenue, $54 million net income, and our adjusted EBITDA in 2024 was $117.5 million. All three of these key metrics hit historical highs. The compound annual growth rate of revenue and adjusted EBITDA from 2021 to 2024 was 65% and 177% respectively. What I want to emphasize here is 2024 marks the fourth consecutive year since our founding in 2020 that Bitfufu has delivered both strong revenue growth and positive net income and adjusted EBITDA. In fact, we are one of the few publicly traded Bitcoin mining companies who generate positive EPS every year since 2021. This underscores the profitability and resilience of our business model irrespective of Bitcoin price cycles. As of December 31st, 2024, our total mining capacity under management stood at 23.5 exahash with hosting capacity at 551 megawatts up from 22.9 exahash and 515 megawatts, respectively at the end of 2023. In 2024, based on market conditions, we dynamically adjusted the structure and quantity of the hash rate we procured. Considering the impact of the halving event, we took a more focused view in expanding our scale. Our mining capacity under management reached 28 EXA hash in the first quarter of 2024. However, we strategically reduced the procurement of hash rate in the following quarters. focusing instead on optimizing our cost structure and enhancing profitability. We believe this approach is key to maintaining our competitiveness in the post-halving era. In fact, since the beginning of 2024, we have gradually shifted our focus towards vertical integration, aiming to reduce mining hosting costs by acquiring or building our own data centers. For potential mining sites, We have strict selection criteria and economic requirements regarding the payback period. As a result of our business development efforts, we achieved several milestones. In the third quarter of 2024, we relocated some leased and self-owned mining machines from higher cost U.S. facilities to lower cost operations in Ethiopia. In October, we signed an agreement to acquire a majority stake in our first mining site, an 80-megawatt facility in Ethiopia with an electricity cost of 3.6 cents per kilowatt hour. In the fourth quarter of 2024, we also signed long-term lease agreements with purchase options for two U.S. facilities totaling 33 megawatts at 4.2 cents per kilowatt hour. As a result of these initiatives, by the end of 2024, our average hosting cost had been reduced by 25% compared to the end of 2023. Subsequent to the end of 2024, in February 2025, we acquired a majority stake in a 51 megawatt facility in Oklahoma with an electricity cost of 3 cents per kilowatt hour. We've set a one gigawatt secured power capacity expansion plan for the next two years, which includes the acquisition of currently operating sites and development of greenfield sites. Geographically, we primarily focus on expansion in North America. However, we will also consider sites outside North America that have low-cost power and a stable mining environment. as a result of acquisition initiatives. We have made and long-term leases we have signed. Bitfufu has now secured 164 megawatts of power capacity. And our MA pipeline includes over 500 megawatts of potential projects. And we are now still searching for other potential projects. Within the one gigawatt target, we aimed to have 400 megawatts of projects online and another 400 megawatts of projects either contracted or under construction by the end of 2025. As I've noted on previous calls, transitioning from a pure asset light model to a combined model in which we will increasingly secure more cell phone miners and mining sites is one of our long-term strategy. Ownership enables cost structure improvements, greater network control, and the flexibility to expand into HPC or AI data centers if we choose. Our cloud mining business continued to grow rapidly in 2024, accounting for more than half of our revenue. During the year, we saw an accelerating growth rate in our registered users, which has continued into 2025. By the end of February 2025, on a global basis, our registered users surpassed 600,000. This growth reflects not only the accelerating adoption of Bitcoin, but also our commitment to innovation. Through ongoing R&D, we're developing and delivering advanced mining tools and applications that our customers rely on. Positioning Bitfufu as the industry leading one-stop shop platform for comprehensive Bitcoin mining services and solutions, we built a well-developed membership system that offers tiered incentives such as coupons, and reward points that are based on user levels. These operational enhancements have played a key role in strengthening user engagement and loyalty with our application. Looking ahead, we plan to expand our suite of Bitcoin mining services seamlessly integrated into our app to help miners around the world reduce their startup costs and enhance their overall mining experience. As of today, both BitFufu Pool and BitFufu OS are available to the broader mining market. BitFufu Pool is our private label mining pool service with commission rates as low as 0.4%, which is highly competitive in the industry. BitFufu OS is our software solution designed for experienced miners seeking to optimize output. which can increase mining overall earnings by up to 20%. Bitfufu OS features a range of overclocking and underclocking modes, empowering miners to optimize operations on the fly based on temperature conditions, power availability, and market conditions. We are also actively developing additional mining service innovations that build on our proprietary hash rate allocation technology. These are expected to roll out later this year and will further strengthen our position as a technology leader in the global cloud mining space. Additionally, in the fourth quarter of 2024, we generated $30.5 million revenue from selling of mining equipment. If you notice, the last time we had minor sales revenue was in early 2022, which also coincided with a relatively high Bitcoin prices. The growth in prices has led to an active market for minor transactions, and we expect this trend to continue, bringing Bitfufu minor sales revenue in 2025. Although I've touched on some of our 2025 initiatives earlier, I'd like to take a moment to summarize our broader strategic vision for the year. Our primary objective for 2025 is to drive bidirectional expansion across the Bitcoin mining value chain, both horizontally and vertically. First, on the horizontal side, we plan to continue growing our cloud mining business while expanding into adjacent services, including mining machine sales, monitoring software, and mining software solutions. These offerings will diversify our revenue streams and create meaningful synergies with both our cloud mining and self-mining operations. Through this approach, we aim to further strengthen our ecosystem by acquiring more customer relationships, deepening supplier networks, and enhancing overall brand recognition. Second, on the vertical side, we will continue to focus on reducing costs, improving efficiency and shortening payback periods for our self-mining operations. We plan to do this by acquiring high-quality assets and optimizing our deployment strategies. In parallel, we aim to accumulate more Bitcoin through disciplined and strategic asset management. We do not normally provide guidance. However, given what we believe to be a significant valuation gap compared to some of our peers, we recognize that it may be helpful to provide some initial guidance. We expect our mining capacity to reach approximately 33 exahash and hosting capacity to be in the range of 650 to 800 megawatts by the end of 2025. As we approach the end of the first quarter and look to the remainder of 2025, We remain confident in our ability to drive continued growth and shareholder value. And with that, I'll turn the call over to Kala to discuss our financial results in detail. Kala.