BitFuFu Inc.

Good day and thank you for standing by. Welcome to BitFuFu's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Charlie Brady. Please go ahead.

Thank you, operator. Good morning, ladies and gentlemen, and welcome to BitFuFu's first quarter 2020 library's 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 Cal is now Chief Financial Officer. Before we begin, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions on 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.bid203.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.

Thanks, Charlie. Good morning, and thank you for joining Bitfufu's first quarter 2025 earnings call. I'll briefly cover our first quarter performance and provide updates on our strategic growth initiatives before turning it over to Kala to cover our financial results in more detail. As expected, our first quarter revenue declined year over year due to the increased network difficulty and the April 2024 halving event, which reduced the Bitcoin block subsidy from 6.25 to 3.125 Bitcoins. In the first quarter of 2025, we achieved total revenue of $78 million compared to $144 million in the first quarter of 2024. Net loss of $17 million and adjusted EBITDA of minus $11 million were significantly impacted by the unrealized fair value loss of digital assets and digital asset collateral receivables or payables. which was $19.4 million in total. We ended the first quarter of 2025 with total mining capacity under management of 20.6 XA hash and hosting capacity of 478 megawatts compared to 28.6 XA hash and 644 megawatts as of March 31st, 2024. This decline was primarily driven by two temporary factors. First, certain hash rate procurement contracts expired during the quarter, while the new contracts were still under negotiation at the end of March, resulting in a short-term reduction in available mining capacity. Second, several of our suppliers underwent minor fleet relocations and hardware upgrades, which temporarily disrupted the flow of purchased hash rate. Despite these headwinds, we have seen a strong recovery in recent weeks. Earlier this week, we announced a significant rebound in total mining capacity under management. By April 30th, our hash rate had increased to 28.3 exahash, nearly matching the levels we achieved as of March 30th last year. This momentum continued into May with hash rates reaching 34.1 exahash by month end. It's important to note that much of the hash rate added in May came from the latest generation Antminer S21 series. These units deliver materially higher efficiency, which not only improves our cost structure, but also positions us well to maintain competitiveness even as network difficulty continues to rise. This rebound underscores the strength of our supplier relationships, the agility of our procurement strategy, and the resilience of our overall business model. Looking back to the achievement of the past quarter, we closed the acquisition of a mining facility in Oklahoma, lifting our self-owned hash rate to 4.2 exahash and advancing our vertical integration strategy. Although deliveries from some longstanding suppliers tapered off, we broadened our network, added new partners, and increased orders from existing ones, strengthening the supply chain and lowering concentration risk. when leasing hash rate, suppliers usually ask for upfront payment. While we want to actively manage the risk of supplier defaulting in cash flow, in Q1 2025, we created structures that satisfy both needs, allowing us to expand our supplier base. We onboarded several new suppliers, one of whom, for instance, scaled its deliveries from 0.2 exahash in fourth quarter 2024 to 1.6 extra hash in first quarter 2025, and 3.1 extra hash subsequent to the end of the first quarter. By the end of March, the hash rate managed by B2FU spanned five continents, giving us greater flexibility. Combined with our proprietary technology that slices and dispatches hash rate globally, this geographic reach supports uninterrupted cloud mining service for customers. We expect to replicate the supplier agreements and continue adding partners going forward. Moreover, in the first quarter of 2025, we continued expanding our global footprint. adding new customers across key growth markets in Africa and Asia. This expansion reflects the growing global demand for our integrated mining solutions and reinforces the scalability of our platform. The addition of customers in these regions not only diversifies our revenue base, but also strengthens our position in markets with increasing digital asset adoption and infrastructure investment. As we continue to build brand recognition and local partnerships in these geographies, we expect to unlock additional growth opportunities and further enhance the resilience of our business across economic cycles and regulatory environments. While the initial contribution from new customers may appear modest, this is consistent with typical onboarding behavior. New users often begin with small trial orders before transitioning to larger recurring commitments, notably, Our top two revenue generating customers in the first quarter only joined the platform in late 2023 and early 2024, one in November and the other in January. This demonstrates the potential of new accounts to scale quickly. We believe our current pipeline of new customers has the potential to become a significant contributor to future growth. During the first quarter, Our average electricity price declined by 18% compared to the first quarter of 2024. Due to our continuous efforts on optimize our cost structure to mitigate the impact of possible growth in future electricity costs, we have been actively joined curtailment plans in the mining sites we operate in the U.S. and explore other cheaper powers globally. Looking ahead to our capital expenditure plans for the remainder of 2025, we are actively evaluating opportunities in the U.S., Canada, and other part of the world. These include a mix of operating facilities and greenfield development sites. The review process has been deliberate and methodical, reflecting our commitment to disciplined capital deployment. from a structural standpoint, we favor acquiring a controlling interest, typically between 51% and 75% rather than full ownership. We believe joint venture structures can be more capital efficient while also leveraging the local expertise of our partners to support smooth post-acquisition integration and ongoing operations. Now, I'll turn it over to Kala to cover our financial performance. Kala.