BitFuFu Inc.

Good day and thank you for standing by. Welcome to BitFuFu's first quarter 2026 earnings conference call. At this time and for the duration of the conference, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mr. Charlie Brady. Please go ahead, sir.

Thank you, Operator. Ladies and gentlemen, good morning, and thank you for joining BitFufu's first quarter 2026 earnings conference call. The company's financial results were released earlier today and are available on BitFufu's investor relations website at ir.bitfufu.com and globenewswire.com. Joining me today on the call are Chairman and CEO Liu Liu and CFO Kala Zhao. As we begin, please note that today's call will contain forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, and actual results may differ materially. We refer you to our filings with the SEC for a full discussion of these risks. The company assumes no obligation to update any forward-looking statements, except as required by law. We will also discuss non-GAAP financial information on this call. The company provides this information to supplement information prepared in accordance with U.S. GAAP, A reconciliation of these measures to the company's reported gap results can be found in the reconciliation tables provided in today's earnings release. Finally, for those new to our call, we will not be conducting a Q&A session on the call itself. However, if you have any questions, please send them to ir at bitfufu.com. We aim to respond within 24 hours. We value your questions and are committed to transparent, timely communication. I will now turn the call over to Leo to begin the management discussion.

Thanks, Charlie, and thank you all for joining us today. As we begin, let's take a moment to step back and look at the broader landscape, not just for Bitfufu, but for the entire Bitcoin mining and infrastructure space. The first quarter of 2026 has been defined by a return to volatility, Bitcoin's price rebounded from $87,000 at the end of December 2025 to $96,000 in early January, then fell sharply to $63,000 by mid-February. This wasn't an anomaly. It reflects a maturing cycle. Bull markets build hype, and bear markets build resilience. Across the industry, we've seen peers react in different ways. to double the down on expansion, locking in debt, or selling Bitcoin to fund their growth. Others chose to pause operations to avoid losses. We observed these patterns closely. They taught us something critical. The companies that survive and eventually thrive are not those that chase the highest growth rate during bull markets, but those that design their business to withstand inevitable downturns. At Bitfufu, our strategy from day one has been clear. We are building for consistency across cycles with the discipline to manage through volatility. That means focusing on structural advantages such as asset-like agility, capital-like scalability, operational discipline, and technological leverage. This quarter, we leaned even harder into that philosophy. Our dual engine model remains central. In the first quarter, we focused on proof through execution. The quarter was not simply about reallocating hash rate. It was about using our dual engine model, combining cloud mining stability with self mining's upside as the operating framework that guided our decisions in a low price environment. Here's what that looked like in practice. First, we deliberately reduced self-mining exposure to preserve liquidity and mitigate risk during significant price volatility. Second, we leaned further into cloud mining to prioritize more durable recurring performance. Cloud mining revenue grew to $57.5 million of 7.1% year-over-year, and net dollar retention rate was 85.7%. Results were driven by disciplined client management, platform reliability, and consistent service execution. Third, we invested in efficiency across both engines by purchasing S-21 units and optimizing their deployment. Average fleet efficiency improved to 17.7 joules per terahash from 23.2 joules per terahash a year ago. This improvement is structural and strengthens our cost position through cycles by lowering our cost of production. These were deliberate choices but the differentiator was how we executed them. The key was operational discipline not just in finance but in the field. We implemented multiple layers of cost control First, we reduced site operating expense by cutting non-essential maintenance, optimizing staffing, and consolidating logistics. This delivered meaningful savings. Second, we leveraged Bitfufu OS to dynamically manage mining operating modes. We overclocked to maximize output during favorable price windows and underclocked to reduce power consumption and protect margins during prolonged downturns. Through an AI-enabled dashboard, we coordinate a large fleet and make real-time decisions based on market, power, and hardware metrics. Third, we manage operating costs through disciplined Bitcoin sales, strategically timing Bitcoin disposals to better match power expenses and operational needs. In essence, we treated Bitcoin not just as an asset but also as a source of strategic liquidity to maintain financial balance and operational resilience. We also delivered meaningful operational improvements. Power capacity at the end of the first quarter was 457 megawatt. slightly lower than 478 MW at the start of the year, primarily due to higher machine efficiency rather than capacity reduction, were producing more hash rate per unit of power, which strengthens our cost position and supports better margins going forward. To be clear, first quarter was not without its challenges. Gross margin, particularly when self-mining, declined year over year due to increased network difficulty, lower Bitcoin prices, and the carrying cost of higher price hash rate procured in the prior quarter. In response, we strategically reduced our self-mining exposure to prioritize capital preservation and risk management, and we reallocated capacity toward cloud mining, which supports a more durable and predictable margin profile. So, yes, we felt the pressure, but we responded proactively. We didn't wait for the market to recover to improve the model. We made adjustments to ourselves through scale, flexibility and operational execution. Looking ahead, we're moving from defense to offense with discipline. We plan to scale deliberately, invest selectively and expand within a clear risk framework. Here's our roadmap for second quarter and third quarter. First, we plan to optimize our procurement mix by selectively increasing the portion of longer-term 360-day hash rate contracts. Short-term agreements will continue to comprise the majority of our portfolio, but increasing the mix of long-term commitments is intended to improve operational stability and help mitigate rollover risk. As a result, total managed hash rate by year end may remain relatively stable while the portfolio becomes better positioned should network difficulty growth slow down as other major miners transition to AI and HPC. We see this as a strategic window and an opportunity to lock in cost-effective long-term hash rate while Bitcoin prices remain in a lower range, which can improve upside participation, while managing downside risk. Second, we will continue to evaluate opportunities in real-world assets and energy, but only where they align with our core economics and risk profile. Finally, we will maintain our focus on capital efficiency. We intend to remain disciplined on equity issuance and avoid speculative bets. We expect to fund growth through a combination of operating cash flow, selected Bitcoin sales, and our $100 million revolving credit facility, which supports financial flexibility while limiting dilution. This is not a pivot. It's a progression in how we manage the business through cycles. These strategic priorities guided our execution in first quarter, and despite market headwinds, they improved the durability of our model. I will now turn the call over to Kala to provide more details on our financial results.