BitFuFu (FUFU) Sidoti September Small-Cap Virtual Conference summary

Business overview and strategy

• Focuses on making Bitcoin mining accessible through cloud mining, eliminating high upfront costs and complexity for customers.

• Operates 25 mining sites across three continents, with 23 in the US, and a total mining capacity of 24.7 exahash and 522 megawatts as of June 30.

• Maintains an asset-light model by leasing most capacity and miners, but plans to acquire or build owned sites to improve margins and control.

• Strategic partnerships with Bitmain and AntPool provide supply chain advantages and network accessibility.

• Strong balance sheet with over $52 million net cash and $106 million in digital assets as of June 30.

Financial performance and growth

• Adjusted EBITDA for the first half of 2024 increased by over 150% year-over-year; revenues up over 100% for the same period.

• Three-year revenue CAGR of 66%, with first half 2024 revenue nearly matching full-year 2023.

• EBITDA for first half 2024 exceeded full-year 2023 by over 40%.

• Growth driven by expanding hosting capacity, increasing exahash, and improving fleet efficiency by over 36% in 10 quarters.

Business lines and operations

• Cloud mining generates 55%-65% of revenue, self-mining 35%-40%, and hosting/other services about 2%.

• Cloud mining allows customers to buy hash rate and mine Bitcoin without owning hardware, using proprietary Aladdin software for hash rate allocation.

• Guarantees 95%+ uptime for customers, with payments structured to improve working capital and hedge against Bitcoin price volatility.

• Self-mining strategy dynamically adjusts between selling and holding Bitcoin based on market conditions.