Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 98

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 98
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Pool and Foundry, to receive mining rewards from a given network. We maintain our own
account in each of the mining pools that supports our self-mining operations. Under the Full-Pay-Per-Share method, which we
have selected as our mining pool payout method, the mining pool confirms the amount of our Bitcoins payout each day at midnight UTC in
exchange for the hash calculations performed by us to the mining pool in the previous 24 hours. The Bitcoin payout is settled on the following
day, on a daily basis. We are entitled to compensation regardless of whether the mining pool operators successfully record a block to
the Bitcoin blockchain.

Our results of operations
for our self-mining operations are affected by fluctuations and long-term trends in the value of Bitcoin, blockchain difficulty,
the purchase cost or lease expense of mining equipment, and the cost of hosting services (in particular the cost of electricity). Cost
of revenues for self-mining operations mainly consists of lease expense of mining equipment, hosting expenses, procurement cost of
hash rate and depreciation expenses. We measure the breakeven point for our self-mining operations by dividing the sum of cost of
revenue and operating expenses by the number of Bitcoins actually mined from self-mining operations during the relevant period. In
2022, 2023 and 2024, we mined 2,825, 3,577 and 2,537 Bitcoins, respectively, and the breakeven point for our self-mining operations
was approximately US$21,500, US$28,200 and US$58,150, respectively. During the same periods, the average Bitcoin price was approximately
US$26,300, US$28,850 and US$65,960, respectively, according to Coinbase. The increase in the breakeven point of our self-mining operations
from 2022 to 2023 was primarily due to the combined effect of (i) the decrease in the number of Bitcoins output per hash calculation,
which is attributed to the increase in blockchain difficulty; and (ii) temporary suspension of certain miners during the third quarter
of 2023 due to bad weather, power curtailments and the relocation of miners between facilities. The increase in the breakeven point of
our self-mining operations from 2023 to 2024 was mainly attributable to the halving event occurred in April 2024 and the increase in the
price of leased miners or purchased hash rate which was in line with the growth of Bitcoin