Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 140

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 5
Chunk 140
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 mining losses during periods when Bitcoin prices were low.

We did not generate revenue
from our sourcing services for mining equipment, leasing services or sales of mining equipment in 2023, as part of our strategic shift
towards the development of our cloud-mining business. We generated US$18.8 million, US$1.3 million and US$10.4 million from our sourcing
services for mining equipment, leasing services and sales of mining equipment in 2022, respectively.

Cost of revenues

Our cost of revenues increased
from US$162.0 million in 2022 to US$271.4 million in 2023, representing an increase of 67.5%, primarily due to costs associated
with the expansion of our cloud-mining solutions and self-mining operations which was partially offset by a decrease in costs associated
with hosting services and sourcing, leasing and sales of mining equipment.

Cost of revenues from cloud-mining solutions
increased from US$79.1 million in 2022 to US$164.5 million in 2023, representing an increase of 108%, primarily due to associated
costs with the expansion of our cloud-mining business.

Cost of revenues from self-mining operations
increased from US$59.3 million in 2022 to US$101.4 million in 2023, representing an increase of 71.0%, primarily due to associated
costs with the expansion of our self-mining business.

Cost of revenues from miner
hosting services and others increased from US$7.8 million in 2022 to US$5.5 million in 2023, representing a decrease of 29.5%,
primarily due to the temporary suspension of hosted miners by customers seeking to limit mining losses during periods when Bitcoin prices
were low.

Cost of revenues from sales
of mining equipment, leasing of mining equipment and sourcing services for mining equipment sales were nil in 2023, compared with US$10.1
million, US$0.8 million and US$4.9 million in 2022, respectively, as we temporarily suspended these services as part of our strategic
shift towards the development of our cloud-mining business.

Gross profit

Our gross profit decreased
from US$36.2 million in 2022 to US$12.7 million in 2023, and the gross profit margin decreased from 18.3% in 2022 to 4.5% in
202