Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 136

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 5
Chunk 136
---
-mining operations and a 128.4% year-over-year increase in the annual average price of
BTC, which was partially offset by a decrease in BTC output per tera-hash. Bitcoin production from self-mining operations decreased by
29.0% from 3,577 Bitcoins in 2023 to 2,537 Bitcoins in 2024.

Revenue from selling of mining
equipment in 2024 was US$30.5 million, while there was no such revenue in 2023. With the rise in BTC price during 2024, especially during
the fourth quarter, the mining equipment transaction market became more active. We seized the opportunity and completed several sales
transactions in the fourth quarter of 2024.

Revenue from miner hosting
services and others decreased from US$5.9 million in 2023 to US$4.3 million in 2024, representing a decrease of 27.1%, primarily
attributable to the termination of hosting services by certain customers.

We did not generate revenue
from sourcing services for mining equipment or leasing services in 2023 and 2024, mainly due to our strategic shift towards the development
of our cloud-mining business.

Cost of revenues

Our cost of revenues increased
from US$271.4 million in 2023 to US$433.6 million in 2024, representing an increase of 59.8%. The increase was in line with the increase
in our total revenue and was primarily due to costs associated with the expansion of our cloud-mining solutions and self-mining operations,
as well as the resumption of selling of mining equipment in 2024.

Cost of revenues from cloud-mining solutions
increased from US$164.5 million in 2023 to US$254.1 million in 2024, representing an increase of 54.5%. The increase was primarily due
to the expansion of our cloud-mining operations and the increase in the procurement price of hash rate or leasing price of miners when
BTC price grew in 2024.

Cost of revenues from self-mining operations
increased from US$101.4 million in 2023 to US$147.3 million in 2024, representing an increase of 45.3%. The increase was mainly due to
expansion of self-mining operations.

Cost of revenues from miner
hosting services and others decrease from US$5.5 million in 2023 to US$4.3 million in 202