Bitfufu Inc-a Stock

Good day, and thank you for standing by. Welcome to BitFuFu Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I'd now like to turn the conference over to your first speaker today, Ms. [ Leanne Tang ] from BitFuFu's Investor Relations. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone. Welcome to BitFuFu's Second Quarter 2026 Earnings Call. Thank you so much for joining us today. Joining me today on the call are Chairman and CEO, Leo Lu; and CFO, Calla Zhao.

As we begin, please note that today's call will contain forward-looking statements. 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 GAAP results can be found in the reconciliation table 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 [email protected]. 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, [ Leanne ], and thank you all for joining us today. Looking back at the second quarter, I see it as a pivotal period where we focused on building strength and proactively positioning ourselves for the second half of the year.

In an industry environment that remains highly dynamic, we didn't sit back and simply wait for market conditions to improve. Instead, we doubled down on what we can control, taking decisive strategic steps to optimize our hashrate mix, upgrade platform capabilities and drive operational efficiency. And from an execution standpoint, we made meaningful progress in second quarter. By the end of June, our self-mining hashrate had grown to approximately 3.5 EH/s, up 9.3% quarter-over-quarter. Combined with the increased allocation of hashrate to our self-mining operations, we were able to significantly boost production. Our monthly self-mining production nearly tripled during the quarter, rising from 32 Bitcoin to a peak of 90 Bitcoin.

At the same time, our hosting revenue increased by a remarkable 254% year-over-year, primarily driven by our buy-and-host solution. This offering continued to gain traction with clients seeking a more flexible, hassle-free way to manage their mining assets, sustaining strong demand from new customers throughout the quarter and underscoring its potential as a future growth driver. In cloud mining, while lower Bitcoin prices temporarily weighed on customer ordering, we observed growing demand for differentiated products, such as hashrate products with stable outputs. This provides us with valuable insights into how customer needs are evolving and will help guide our continued refinement of the cloud mining product suite.

To further strengthen our operational foundation, we acquired approximately 3,200 latest-generation S21XP miners during the quarter. On top of that, we secured additional hashrate capacity in June and July, which will come online throughout August. This gives us strong visibility into our capacity expansion for the second half and positions us to bring our total managed hashrate back to around 20 EH/s by mid-August. Taken together, these efforts have continued to improve our platform's operational quality, resilience, cost efficiency and commercial flexibility, laying a solid foundation for our next phase of growth in the second half.

Separately, we are pleased to share that BitFuFu was named to TIME's 2026 list of the World's Growth Leaders and to the Fortune Southeast Asia 500. These recognitions are an encouraging validation of our team's efforts and further reinforce our standing in the global computing power infrastructure sector. Navigating a challenging market environment during the quarter comes down to 2 core pillars: our differentiated business model and our continued discipline in operational execution. First, our business model gives us a high degree of flexibility. Our cloud mining plus self-mining structure gives us the agility to dynamically reallocate capacity based on changing economics, customer demand and expected returns across different cycles.

During the second quarter, when the economics of certain third-party hashrate contracts no longer met our requirements, we proactively adjusted our procurement strategy and contract duration mix accordingly. We will never sacrifice unit economics simply to maintain headline hashrate. We have always believed that the quality and profitability of the hashrate we manage matter far more than scale for its own sake. Second, our operational discipline and technical capabilities create a real cost moat. Throughout the quarter, we stayed focused on raising uptime, optimizing utilization and refining our staffing and maintenance workflows. With support from our BitFuFu OS firmware system, we intelligently overclocked or underclocked our fleet in real time based on market conditions and power prices, dynamically managing large-scale energy consumption to protect our margins.

Our average fleet efficiency stayed strong in the range of 17.8 to 18.1 J/TH throughout the quarter, a level that is highly competitive by industry standards. Maintaining this level of energy efficiency keeps our baseline production costs low through different market cycles, effectively helping to protect our margins against price volatility. We believe this cost advantage and structural resilience are what allow us to navigate cycles and build lasting value.

Looking at the broader Bitcoin mining landscape, the industry is undergoing a profound structural transformation. On one hand, Bitcoin price remained volatile in the second quarter, and the broader macro environment offered limited tailwinds for the industry. Overall operating conditions, therefore, remain challenging. At the same time, the competitive landscape within Bitcoin mining is becoming more differentiated and selective as miners make increasingly divergent choices around capital deployment, power and hashrate management and whether to continue operating mining infrastructure or transition those assets toward AI and HPC.

On the other hand, this structural evolution is also creating a more favorable long-term environment for high-quality miners that remain focused on Bitcoin mining. As a meaningful portion of U.S.-listed miners permanently transition their power and infrastructure to AI data centers under long-term contracts, the capacity is unlikely to return to the Bitcoin network. This trend is already visible in the network data. Bitcoin network difficulty reached approximately 156T in November 2025, while global network hashrate had declined by approximately 20% from its peak by late June 2026 and was approximately 14% below this year's high. For those of us who remain focused on Bitcoin, a less crowded network could support better operating conditions and further improvement in profitability and cash flow stability.

For BitFuFu, despite the market cycles and short-term headwinds, our core conviction hasn't changed. We remain confident in the long-term value of Bitcoin as an underlying digital asset, and we continue to see strong global demand for high-quality computing power and mining infrastructure. We see BitFuFu as more than a mining company. We are building and continuously optimizing an infrastructure platform that supports the broader digital economy. Our responsibility is to manage these resources proactively and efficiently as the environment evolves, stay focused on what we can control and create long-term value for our shareholders.

The actions we took in the second quarter have also given us greater visibility and certainty heading into the second half of the year and beyond. Looking ahead, we will continue to closely monitor global power markets and evaluate opportunities in high-quality infrastructure and hashrate capacity, focusing on areas where our operating capabilities can give us an advantage. The macroeconomic environment and Bitcoin prices remain important inputs to our capital allocation decisions, and we will stay open to high-quality opportunities that fit within our risk framework. With efficient infrastructure, core power resources and strong operating capabilities, we believe BitFuFu holds meaningful long-term option value and the flexibility to act when the next set of opportunities emerges.

Ultimately, our strategy remains consistent with the principles we have outlined over the past several quarters: build a business model that can operate through different cycles, manage risk actively, continuously improve efficiency and deploy capital toward areas that can generate the best long-term returns.

I will now turn the call over to Calla to provide more details on our financial results.

Good morning, everyone, and thanks, Leo. Now let's look at the second quarter's financials. I'll cover the following points: revenue, cost and profit, balance sheet and capital actions. Compared to the same period last year, our total revenue and cloud mining revenue declined sharply. This decline was primarily driven by the sharp swing in Bitcoin prices between the 2 periods as well as the different measures we took in response.

In second quarter 2025, Bitcoin prices rose steadily from roughly $86,000 in April to over $100,000 by June, which drove strong customer demand and encouraged miners to expand their capacity. In contrast, second quarter 2026 followed 2 consecutive quarters of price pressure. And in that environment, both customers and miners took a more measured approach, delaying new commitments until the outlook improves. Given how different the market backdrop was between the 2 periods, we believe the more meaningful measure of our progress this quarter is whether we ran the business with discipline, maintained a healthy balance sheet and stayed positioned to capture value as the market recovers. That's our focus, and we're confident in the foundation we're building.

Cloud Mining Solutions remained our largest revenue source at $24.9 million. This accounted for 58.3% of our total revenue. Client retention remains a priority. Our cloud mining net dollar retention rate was 24.1% in second quarter. We believe the decline in net dollar retention was primarily driven by existing customers reducing their order volumes. This reflects lower Bitcoin prices and weaker mining economics during the quarter rather than a proportional loss of our customer base. We are actively addressing this through product enhancements and service innovation to meet our customers' evolving risk preferences. Self-mining operations contributed $14.0 million, making it a relatively stable segment despite a 27% drop in the average Bitcoin price. Increased allocated hashrate and improved efficiency helped offset the impact of lower prices. Hosting and other services rose to $3.9 million. This is a meaningful increase driven by the continued scaling of our buy-and-host solution, which is now generating recurring revenue from clients seeking asset ownership and operational simplicity.

Turning to costs. Our cost of revenue for the past quarter was $43.7 million, decreased significantly from second quarter 2025, but aligned with our scale adjustments. As mentioned in the first quarter's earnings, some high-cost hashrate procured during fourth quarter 2025 has created pressure to the profit margin for the first half of this year. However, our procurement optimization efforts are already helping to mitigate this impact. We have locked in more cost-efficient hashrate at current market rates. We also kept improving our operations. For example, at our mining site in Oklahoma, we work closely with the power company. Through engaging in optimized curtailment programs, our electricity costs reduced to approximately $0.03 per kilowatt hour in June. This is a direct, measurable cost saving. Net loss for second quarter was $20.5 million. Fair value losses on our Bitcoin holdings and digital asset receivables and payables contributed $16.9 million to the net loss. Excluding the fair value loss impact, our adjusted EBITDA would have been approximately negative $1.5 million. This is a relatively contained loss given the scale of the revenue pressure this quarter.

As of June 30, 2026, our balance sheet remains strong and stable. Total cash and digital assets stood at $119.5 million, compared to $177.1 million at year-end. The decrease was primarily due to Bitcoin price depreciation and the prepayments we made to secure hashrate procurement. We expect these prepayments to translate into higher Bitcoin mining output over the coming years, supporting Bitcoin holdings going forward. Total Bitcoin holdings were 1,671 Bitcoin as of June 30, including 54 Bitcoin pledged as collateral for loans. The amount of pledged Bitcoin declined substantially from 357 Bitcoin as of March 31 to 54 Bitcoin as of June 30 because of our repayment of $10 million Bitcoin-backed loans and replacement of $3 million Bitcoin-backed loans with unsecured loans. Accordingly, we ended the quarter with $5.4 million outstanding loans.

This quarter, we demonstrated our unwavering commitment to prudent capital management and shareholder protection through 3 key actions. First, we completed the quarter with very limited equity issuance. In a volatile market, we chose not to dilute existing shareholders. Instead, we funded operations through operating cash flow, Bitcoin sales and our credit facility. In addition, the Board's authorization to repurchase up to $5 million of our Class A ordinary shares reflects our confidence in the long-term prospects of the business and our commitment to disciplined capital allocation. Second, we repaid $10 million in Bitcoin-backed loans. This not only reduced our debt, but also strengthened our financial resilience. This was a deliberate decision in second quarter made to build a safer foundation for the next cycle.

Third, we continue to invest in more efficient mining equipment and secured additional capacity for the second half of the year. We added S21 units without compromising liquidity as part of our shift toward longer-term, cost-efficient hashrate contracts. This is preparation for future growth, not a rushed expansion. In summary, second quarter was another quarter of disciplined execution. We maintained a close focus on operating expenses, procurement and supply chain management, preserved liquidity and maintained a strong balance sheet even in a challenging market.

I'll now turn it back to Leo to close out the call.

Looking back at the second quarter, I believe we made several important advances that strengthen the foundation of the business for the next stage of our growth. We increased the contribution from our self-mining business, maintained strong fleet efficiency, continue to optimize our capacity mix, upgraded to more efficient mining equipment and secured additional hashrate capacity ahead of the second half of the year. Together, these actions have further strengthened our operating foundation and better positioned us to capture new opportunities as market conditions improve.

Looking across the industry, we believe that as the market becomes more differentiated and selective, scale alone will no longer be the most important factor. The quality of infrastructure, operating efficiency, access to competitive power and the ability to effectively manage hashrate across different market conditions will become increasingly important. At the same time, investors are paying closer attention to sustainable operating economics, execution, cash generation and the company's ability to create value through different stages of the cycle.

Over the coming quarters, we will remain focused on high-quality execution while closely monitoring changes in network hashrate, power markets, Bitcoin prices, the broader macroeconomic environment and the economics of the mining industry. While these factors will continue to present challenges, they will also unlock new opportunities. We intend to maintain total flexibility so that we can step in decisively when those opportunities offer proven economics and real strategic value. Finally, I would like to thank our shareholders, customers and partners for their continued support of BitFuFu. We will continue to build efficient infrastructure, strengthen our operating capabilities and create long-term sustainable value for our shareholders.

That concludes our prepared remarks. Thank you for taking the time to join us today, and we look forward to updating you again next quarter.

That does conclude today's conference call. Thank you for your participation. You may now disconnect your lines.

Good day, and thank you for standing by. Welcome to BitFuFu's First Quarter 2026 Earnings Conference Call. [Operator Instructions] 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, Leo Lu; and CFO, Calla 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 GAAP 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 [email protected]. 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 dampen 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 1 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-light agility, capital-light 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 hashrate. 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, up 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 S21 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 nonessential maintenance, optimizing staffing and consolidating logistics. This delivered meaningful savings.

Second, we leveraged BitFuFu OS to dynamically manage mining operating modes. We overclock to maximize output during favorable price windows and underclock 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 managed 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 megawatts, slightly lower than 478 megawatts at the start of the year, primarily due to higher machine efficiency rather than capacity reduction. We're producing more hashrate 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-priced hashrate 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 road map for second quarter and third quarter.

First, we plan to optimize our procurement mix by selectively increasing the portion of longer-term 360-day hashrate 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 hashrate 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 hashrate 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, selective 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 Calla to provide more details on our financial results.

Good morning, everyone, and thanks, Leo. Let's take a closer look at our first quarter results, starting with revenue and more importantly, what drove it. Cloud Mining Solutions remained our largest revenue source at $57.5 million. This represents 7.1% year-over-year growth and accounted for 79.1% of our total revenue, reinforcing the resilience of our core platform and why we continue to lean into cloud mining.

Self-mining operations contributed $11.4 million in first quarter, down 35.2% from the same period last year. The decline reflects a combination of market conditions and our deliberate decision to reduce self-mining exposure to preserve liquidity and reallocate hashrate towards cloud mining solutions, which supports a higher and more predictable margin profile.

We saw significant growth in hosting and other services in the first quarter, increasing to $3.8 million compared with $0.7 million in first quarter 2025. This growth was driven primarily by our 2025 mining facility acquisition, which enabled us to offer a buy-and-host one-stop solution that meets client demand for both asset ownership and operational simplicity.

Finally, I want to highlight customer retention. Our cloud mining net dollar retention rate was 85.7% in first quarter, reflecting continued customer engagement and platform reliability in a volatile market.

Now turning to costs. Cost of revenue was $72.3 million, up a modest 1.0% year-over-year despite a 6.8% decline in revenue. In addition to the year-over-year increase in network difficulty, the primary driver was higher cost hedge rate procured during fourth quarter 2025. Those contracts were entered into when Bitcoin prices were higher, and they pressure gross margin as prices moved lower in first quarter.

We view this as a timing effect rather than a change in underlying operational efficiency. We are already taking action to realign our cost structure with current market conditions by renegotiating contracts, improving procurement timing and locking in more cost-efficient hashrate at current market rates.

Net loss for first quarter was $35.0 million compared to a loss of $16.9 million in the same period last year. Importantly, fair value losses on our Bitcoin holdings and digital asset receivables and payables contributed $35.6 million to our net loss. Excluding the fair value loss impacts, adjusted EBITDA would have been approximately positive $1.1 million.

As of March 31, 2026, our balance sheet remains strong. Total cash and digital assets stood at $141.5 million compared to $177.1 million at year-end, primarily reflecting mark-to-market impact from a lower Bitcoin price. Total Bitcoin holdings were 1794 Bitcoin, including 357 Bitcoin pledged as collateral for loans and payables. We continue to manage our Bitcoin treasury strategically to support operations and maintain financial flexibility. And importantly, we continue to maintain a strong liquidity position supported by our $100 million revolving credit facility.

We ended the quarter with $50 million outstanding under the revolver and subsequent to quarter end, we reduced that balance to $5 million. This reflects our ongoing commitment to strengthen our balance sheet and preserve financial optionality, and it gives us flexibility to fund growth, invest selectively or preserve capital as market conditions evolve.

In summary, first quarter was a quarter of disciplined execution. We managed costs, preserve liquidity and maintained a strong balance sheet even in a challenging market. While our GAAP results were impacted by market-driven fair value changes, the underlying operating performance of the business was solid, and we believe we are well positioned for the next phase of growth.

I'll now turn it back to Leo to close out the call.

Okay. Thank you, Calla. First quarter was not about headline numbers. It was about execution, preserving capital, refining our cost structure and strengthening the business. We achieved this by reducing self-mining exposure, improving fleet efficiency, managing our Bitcoin treasury with discipline and maintaining strong customer execution in cloud mining. As a result, we entered second quarter with a stronger foundation, clearer priorities, and greater flexibility.

We are not chasing trends. We are building a business designed to perform through cycles. We are not merely reacting to short-term volatility. We are actively preparing for the next cycle. We are confident the discipline we showed in first quarter will translate into results in the quarters ahead as efficiency gains and procurement improvements strengthen our cost structure.

To our shareholders, thank you for your trust. We remain committed to delivering long-term sustainable value through execution, transparency and a focus on building a business that lasts. This concludes our prepared remarks. Thank you for your time, and we look forward to updating you again next quarter.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Good day, and thank you for standing by. Welcome to BitFuFu Inc.'s Full Year 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to turn the call over to your first speaker today, Mr. Charlie Brady. Please go ahead.

Thank you, operator. Ladies and gentlemen, good day, and welcome to BitFuFu's Full Year 2025 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 globe-newswire.com. Joining me today on the call are Chairman and CEO, Leo Lu; and CFO, Calla Zhao.

Before we begin, please note that today's discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in the company's public filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements, except as required by applicable law.

We will discuss non-GAAP financial information on this call. The company provides this information to supplement information prepared in accordance with U.S. generally accepted accounting principles. A reconciliation of these measures to the company's reported GAAP results can be found in the reconciliation tables provided in today's earnings release. Finally, it's important to note that while we won't be conducting Q&A on this call, you can e-mail your questions to [email protected] and we'll respond as quickly as possible, typically within 24 hours.

I will now turn the call over to Leo Lu, Chairman and CEO of the company.

Thanks, Charlie, and thank you all for joining us today. 2025 was a challenging year for the cryptocurrency industry, particularly for mining enterprises. When the price of Bitcoin surged rapidly during the second and third quarters, hitting an all-time high of $126,000, market sentiment leaned heavily toward targets of $150,000 or even $200,000 by year-end. Consequently, many market participants increased capital expenditures and leverage, while others continue to accumulate more Bitcoins. Bitcoin never follows a script. After the run-up, it dropped below $100,000 in November, below $90,000 in December and entered a weaker market in 2026. That volatility created severe cash flow pressure for some market participants and forced many liquidations.

Looking back, BitFuFu executed its strategic plan and maintained rigorous operational discipline throughout 2025. We did not lever up or chase unprofitable growth at the top of the cycle, and we preserve liquidity so we would not need to sell Bitcoin in weak markets to support operations or reduce leverage. We achieved the majority of the goals set at the beginning of 2025 and built a solid foundation to navigate the current weaker market conditions. I will touch on a few of these points in a moment.

As reported in our earnings release earlier today, for the full year 2025, we generated total revenue of $475.6 million. Our Cloud Mining business continued to be our largest revenue contributor, generating a record $350.6 million, up over 29% versus 2024 and accounting for nearly 74% of our total revenue for the year. Calla will discuss this and our other revenue lines in more detail later. Operationally, we continued executing our hybrid model of cloud mining and self-mining along with complementary mining services such as hosting and minor sales, mining pool services and our proprietary mining rig operating system. We are pleased to see the powerful synergies between these business lines.

For instance, our U.S. deployed mining facilities allow us to offer highly competitive hosting rates and power solutions. This, in turn, attracts customers to purchase hardware directly from us, effectively driving our minor sales activity. Furthermore, robust cash flow generated from our minor sales and cloud mining solutions provides the necessary liquidity to support our self-mining operations and Bitcoin accumulation treasury strategy. In 2025, we also successfully onboarded additional suppliers and diversified our hashrate supply, effectively mitigating potential risks associated with supplier concentration.

We continuously optimize our fleet and site mix, and we ended December 2025 with 26.1 EH/s of managed hashrate. including 3.7 EH/s of self-owned hashrate and 22.4 EH/s from third-party suppliers and hosting customers, total available power capacity was 478 megawatts, including 164 megawatts of control capacity in Ethiopia and the U.S. We chose to stay disciplined regarding capital expenditure on hardware. Instead of expansion for expansion sake, we align our hardware procurement with the addition of new self-controlled power capacity, keeping our production costs highly competitive.

By balancing our usage of power capacity between self-mining and third-party hosting, we capture both the upside in Bitcoin and the consistent profitability of hosting service fees. This philosophy is similar as our broader cloud mining and self-mining hybrid model. In this business, success comes down to precise ROI decisions. In 2025, we focused on execution at the site and fleet level, improving efficiency and reliability, that operating focus gives us a stronger foundation to manage through the current weaker market conditions.

Now let me shift gears for a moment and discuss how BitFuFu differentiates itself compared to other miners. This is also a question that we are frequently asked by investors. We believe BitFuFu stands out because we operate like a services and platform business, not a single product miner. Our platform combines a hybrid operating model of cloud mining and self-mining, a purpose-built hashrate management system we call Aladdin and an integrated suite of services that serves both individual users and large-scale mining operators.

First, our hybrid model balances upside and resilience. The mix of self-mining and cloud mining allows us to participate in Bitcoin's upside by increasing our treasury holdings, while also building recurring service-based revenue with better cash flow visibility across market cycles. We believe the top-line growth of our cloud mining business and its greater contribution to total revenue, reflects sustained customer demand and durability, not a one-off trend.

Second, our proprietary Aladdin hashrate management system is built to optimize our fleet and deliver hashrate reliably. Aladdin dispatches and monitors hashrate across dozens of sites and hundreds of thousands of machines with real-time data, predictive maintenance and flexible allocation. The practical advantages, reliability we can reroute capacity and keep performance stable when conditions change. Aladdin is designed to scale to manage millions of machines.

Third, we have an integrated platform with real adoption. Beyond mining, we provide hosting services, minor sales, mining pool services through BitFuFu pool and our own mining software, BitFuFu OS. By late 2025, our registered cloud mining users surpassed 675,000, while the majority of our cloud mining revenue continues to be generated from institutional customers, we believe there is enormous potential for a retail customer participation.

Finally, we believe governance and supply chain credibility are competitive advantages. We are a NASDAQ-listed company subject to stringent compliance requirements. We also operate with KYC IML controls and user level transparency that institutional customers expect. This transparency helps build trust and is one reason we have built a leading position in cloud mining and generated a net dollar retention rate of 100% in 2025.

In the current market environment, we have witnessed many miners prioritizing near-term liquidity by selling Bitcoin holdings to support operations or reduce significant leverage positions. Our approach is different. We manage liquidity conservatively and seek to build our Bitcoin treasury through the cycle while maintaining flexibility. We also maintain a conservative debt profile to provide security during low points in the market cycle. As of December 31, 2025, we held 1,778 bitcoins compared to 1,720 Bitcoins at the end of 2024. As we enter 2026, we continued stacking reaching 1,830 bitcoins as of February 28, 2026. Importantly, at year-end, we reduced pledged bitcoins to 274 Bitcoins from 633 Bitcoins as of year-end 2024, increasing the Bitcoins available on our balance sheet and improving financial flexibility.

Looking ahead to 2026, I believe our growth opportunities will stem from several key areas. First, regarding the sources of hashrate expansion in a bear market, many miners face cash flow pressures and may seek to liquidate hashrate to recover capital for debt repayment or fleet upgrades. Similarly, hardware manufacturers may prefer to sell short-term hashrate to alleviate inventory pressure. The prevailing hashrate supply logic shifts from pursuing high alpha returns to asset preservation through extreme operational efficiency. Consequently, the hashrate supply can actually become more active in a bear market than in a bull market. In terms of market demand, institutional clients who purchased cloud hashrate at higher price levels often increase their positions during market dips to lower their average cost per coin. We also anticipate the entry of new customers with higher risk appetites, who recognize the value of entering the market during periods of low activity to capture greater future returns.

Due to the inherent leverage effect of cloud mining solutions, customers can typically accumulate more Bitcoins compared to direct exchange purchases. In 2026, BitFuFu remains strategically focused on acquiring infrastructure, and we are continuously evaluating potential partnership opportunities. This is the core of our vertical integration strategy. We believe that power capacity is an appreciating asset that not only lowers our self-mining costs and enhances competitiveness but also provides a robust foundation for our minor sales and hosting businesses.

Our priorities in 2026 are to firstly, scale cloud mining and maintain strong customer retention; secondly, expand managed capacity across hashrate and power while maintaining disciplined returns; thirdly, continue improving reliability and uptime through Aladdin; fourthly, optimize capital allocation and liquidity; and fifthly, continue building our Bitcoin treasury opportunistically.

I will now turn the call over to Calla to provide more details on our financial results.

Thank you, Leo. Good morning, everyone. Over the past year, our focus on operational execution at the site and fleet level enhanced our efficiency and reliability. While we recorded a net loss, we delivered positive adjusted EBITDA. Additionally, we achieved revenue growth and preserved a healthy balance sheet.

Now I'll walk through our full year 2025 financial and operating results. The total revenue for the full year 2025 was $475.8 million compared with $463.3 million in 2024, the year-over-year increase was primarily driven by growth in cloud mining solutions. Mining equipment sales and hosting services, partially offset by a decline in self-mining revenue due to the lower hash price and increased network difficulty. Cloud Mining Solutions revenue in 2025 grew 29.3% year-over-year to $350.6 million compared with $271 million in 2024. Cloud Mining Solutions represented approximately 74% of revenue in 2025, compared to approximately 59% in 2024.

Demand for cloud mining solutions remain strong and continue to exceed available supply. As a result, we were able to improve pricing and redirected the majority of our available hashrate to institutional customers at higher price points. In 2025, existing customers represented 79% of cloud mining solutions sales and new customers represented 21% compared with 77% and 23%, respectively, in 2024. Net dollar retention was 100% in 2025 versus 117% in 2024. Self-mining revenue was $63.1 million versus $157.5 million in 2024 and accounted for about 13% of total revenue, compared to 34% in 2024.

In 2025, we allocated 43% of our owned hashrate to cloud mining and 57% to self mining. For leased hashrate, 91% supported cloud mining and 9% supported self mining. This reflects a meaningful shift from 2024 when only 3% of owned hashrate supported cloud mining and 73% of leased capacity supported cloud mining. Year-over-year, the allocation of owned hashrate to cloud mining increased by 40 percentage points, driven by the strength in demand for cloud mining solutions and our ability to flex capacity toward customer demand. We also increased the share of leased capacity directed to cloud mining by 18 percentage points, supporting that same demand-driven shift.

Turning to hashrate sourcing in 2025, 8% of cloud mining hashrate was supplied by our owned miners and 92% from purchase or leased hashrate from third parties. This compares to 2024 when cloud mining was supported entirely by third-party capacity. For self-mining, hashrate from owned miners increased to [Audio Gap] in 2025 from 24% in 2024. For the full year 2025, the average cash cost to mine 1 Bitcoin was $77,573. This reflects a blended cost structure across our self-mining operations with approximately $61,000 per bitcoin from owned machines and approximately $98,000 per Bitcoin from leased hashrate. The use of leased hashrate, which typically carries contract durations of 3 to 12 months provides operational flexibility.

This allows capacity to be periodically rebalanced and repriced in line with evolving market conditions. Given that leased pricing is generally linked to prevailing hash price, this approach enables a more dynamic cost management framework, particularly during periods of market volatility. While leased capacity carries a higher nominal cost, its shorter duration reduces long-term capital commitment and mitigates risks associated with hardware obsolescence and depreciation. As a result, a hybrid model, combining owned infrastructure and leased capacity is maintained, supporting both cost efficiency over the long term and flexibility to adapt to changing market conditions.

The key takeaway is that we still have meaningful opportunity to lower our cost to mine Bitcoin as we still lease a majority of mining capacity. Mining equipment sales increased 76.4% year-over-year to $53.7 million versus $30.5 million in the prior year. Around 60% of the equipment that we sold in 2025 was S21 Series. Full year revenue from hosting services and other was $8.4 million versus $4.3 million in 2024. Growth in this area was driven by our minor with hosting program that was launched in the second half of 2025.

Full year 2025 gross profit after deducting depreciation and amortization, was $26.7 million, resulting in a gross margin of 5.7% compared to 6.4% for full year 2024. Higher gross margins in cloud mining and hosting services were offset by lower margins in self-mining and equipment sales. Before deducting depreciation and amortization, 2025 gross profit margin was 11.6% versus 11.7% in 2024. For 2025, sales and marketing expense was $3.7 million. General and administrative expense was $9.1 million, and research and development expense was $2.5 million. For 2024, those line items were $7.5 million, $25.3 million and $5.6 million, respectively. The primary driver of the year-over-year decline was significantly lower 2025 stock compensation expense.

Full year 2025 net income was a loss of $57.4 million compared with net income of $54 million in 2024. The year-over-year decline was due to larger noncash impairment loss on mining equipment, increased unrealized fair value losses on digital asset receivables and payables in Bitcoin and a lower realized gain on the sale of digital assets. Adjusted EBITDA for the full year was $8.3 million.

Turning to our balance sheet. We ended December 31, 2025 with cash and cash equivalents of $27.8 million in digital assets of $149.3 million compared with $45.1 million and $129.9 million, respectively, at year-end 2024. In addition, as of December 31, 2025, the company held $24.1 million in digital asset collateral receivables, which represents Bitcoin pledged to lenders in exchange for borrowings. As Leo noted, we ended the year with 1,778 bitcoins and continued building into 2026. As of February 28, 2026, we held 1,830 bitcoins.

Looking ahead to 2026, we are evaluating opportunities to expand our owned capacity footprint, particularly in North America and the Middle East. We will update the market if and when we sign definitive agreements. In terms of our mining fleet, our objective for 2026 is to gradually upgrade our self-owned S19 series miners to newer generation machines with greater efficiency. In a bear market, asset valuations often reset to more attractive levels, which can create compelling opportunities. At the same time, as next-generation miners enter the market, manufacturers may discount legacy models. We will strategically evaluate the economic benefits of both options and prioritize the one with the best returns and payback rather than simply pursuing the newest technology. Separately, expanding our own power and infrastructure remains a strategic focus for 2026.

The company continues to have sufficient liquidity to meet working capital needs. As of the end of February 2026, the company had $85 million available under our $100 million revolving credit facility. We remain focused on disciplined capital allocation, maintaining liquidity and optimizing our funding structure to preserve flexibility through the cycle. Before I turn the call back to Leo for his closing remarks, I want to address the question we have received from analysts and investors, why some customers are willing to pay a premium for cloud mining services instead of simply buying Bitcoin directly in the spot market?

There are a few clear drivers behind this. First, dollar cost averaging and cost visibility, cloud mining allows customers to build Bitcoin exposure over time through a more systematic approach. By placing cloud mining orders consistently across different market conditions, customers can effectively implement a managed dollar cost averaging strategy, reducing the risk of trying to time the spot market.

Second, financial leverage through installment payments. The installment structures in cloud mining solutions create built-in leverage by deferring a significant portion of the service fee component, because the service fee typically represents about 70% to 75% of the total contract costs, the deferral allows more upfront investment to go toward purchasing hashrate that mines Bitcoin. This increases hashrate exposure with lower initial liquidity.

Third, upside optionality on network dynamics. Unlike the fixed outcome of buying Bitcoins on an exchange cloud mining output is dynamically adjusted based on network difficulty and transaction fees. This introduces strategic uncertainty with significant upside. When network difficulty drops or unchanged transaction subsidy search, clients can potentially earn substantially more Bitcoins than they would have through a onetime market purchase.

Fourth, financial reporting and compliance. For some institutional customers, the accounting treatment is a key driver. Cloud mining allows them to record operational revenue from mining activities rather than reporting investment from direct Bitcoin purchasing and holdings. Furthermore, cloud mining mitigates counterparty and trading risks. The Bitcoin produced is categorized as newly minted coins, which are untainted by prior transaction history ensuring full compliance with the stringent AML and audit requirements of institutional investors.

And fifth, supply-demand dynamics and the value of reliability at scale. To our knowledge, there are limited sources for transparent, verifiable large-scale cloud mining and public company standards of governance and disclosure. When demand for reliable mining exposure exceeds available hashrate supply, large-scale customers are often willing to pay a premium to secure consistent delivery and high-volume production that can be difficult to source in the open market.

With that, I will now turn the call back over to Leo.

Thanks, Calla. In summary, we're building BitFuFu to perform across market cycles. Cloud mining remains a key differentiator, enabling recurring service-based revenue alongside our self-mining exposure, and our integrated platform broadens how customers participate in mining. We are also continuing to build our Bitcoin treasury at a time when many miners are selling while staying focused on disciplined capital allocation and liquidity. We appreciate your time today and your continued interest in BitFuFu.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

Ladies and gentlemen, good day. Welcome to BitFuFu's Third Quarter Earnings Conference Call. The company's financial results were released earlier today and are available on BitFuF's Investor Relations website at ir.bitfufu.com and globalnewswire.com. Joining me today on the call are Chairman and CEO, Leo Lu; and CFO, Calla Zhao.

Before we begin, please note that today's discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts including statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from management's current expectations.

Potential risks and uncertainties include, but are not limited to, those outlined in the company's public filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements except as required by applicable law. We will be discussing non-GAAP financial information on this call. The company provides us information to supplement information prepared in accordance with U.S. Generally Accepted Accounting Principles or GAAP. A reconciliation of these measures to the company's reported GAAP results can be found in the reconciliation table provided in today's earnings release.

Finally, it's important to note that we will not be conducting a Q&A on this call, you can e-mail your questions to [email protected], and we will respond as quickly as possible, generally within 24 hours.

I'll now turn the call over to Leo Lu, Chairman and CEO of the company.

Thanks, Charlie, and thank you all for joining us today. The third quarter was a clear inflection point for BitFuFu. Total revenue reached $180.7 million doubling year-over-year and increasing 57% sequentially. And adjusted EBITDA of $22.1 million was up substantially year-over-year. This performance reflects strong execution in our cloud mining solutions platform, continued expansion of our soft mining fleet and healthy demand in our mining equipment sales business. Our dual engine model, combining recurring asset-light cloud mining revenue with direct participation in Bitcoin through self mining continues to demonstrate resilience across cycles.

As usual, our cloud mining business remained our largest revenue contributor this quarter, reaching $123 million, a 78.4% increase year-over-year. We have described before why our cloud mining service is attractive to customers. It's easy to use. You can start with a one-click purchase. It has built-in leverage. Customers can choose to pay the service fee over time to direct more upfront dollars to purchase hash rate. And it's cost effective, for many, it lowers the average cost of acquiring Bitcoin versus buying directly on an exchange. This value proposition appeals to both retail and institutional clients.

In third quarter, the price of Bitcoin moved higher and interest in accumulating Bitcoin increased. Together, these trends lifted demand for our cloud mining services. We saw more new customers and orders and importantly, more repeat purchases from existing customers as digital asset treasury strategies see wider adoption, more institutions are turning to mining to accumulate Bitcoin. This trend is expanding our cloud mining customer base. Institutional clients prioritize 2 things, safeguarding capital and platform reliability as the publicly listed provider with the largest market share in the Bitcoin cloud mining BitFuFu consistently operates with transparency and compliance, creating a platform built for trust.

Additionally, our globally distributed hash rate mitigates regional risks, and ensures a stable service delivery rate of over 99% for our cloud mining offerings. These factors are the foundation of our high customer retention rates and continued expansion of our client base. Building on that, I remain optimistic about the market potential of cloud mining. Independent research from roots analysis projects that cloud mining services could account for approximately 60% of the cryptocurrency mining market by the next decade. This implies 2 things: Demand for cloud mining services should grow alongside the broader cryptocurrency mining market, and cloud mining is expected to account for a larger share of that growth over time.

In the third quarter, we adjusted our hash rate mix to meet demand from our cloud mining customers. We allocated a portion of our self-owned hash rate to fulfill cloud mining orders. At the same time, when we sourced hash rate from third-party suppliers, we strategically acquired additional backup capacity to ensure we could guarantee 100% fulfillment of all customer orders. Any backup hash rate not immediately required for orders was directed to our self-mining operations, this setup allows dynamic allocation, we can route self-owned or third-party hash rate to cloud services or to self mining as needed.

In third quarter 2025 on average, 38% of our cell phone hash rate was allocated to cloud mining services and 62% was used for self-mining. For lease third-party hash rate, 94% was dedicated to cloud services as 6% was used for self mining. Since October, Bitcoin has experienced significant price volatility, moving from a peak above $126,000 to below $100,000. We are often asked does demand for cloud mining decline when the BTC price falls? Our experience says no. BitFuFu's historical performance demonstrates the remarkable resilience of our business model.

Since our inception in 2020, we have navigated both bull and bear markets. Even during bear markets, our cloud mining business has consistently grown and remained profitable. The underlying reason for this is that even when prices fall, long-term belief in Bitcoin and the buying the dip mentality persists. During such times many customers prefer the control cost and convenience of cloud mining to maintain their participation in the mining ecosystem. For BitFuFu, the cloud mining model provides significant advantages. Collecting service fees upfront improves cash flow and creates revenue visibility through orders, which greatly mitigates the uncertainty caused by Bitcoin's price volatility.

Furthermore, unlike traditional mining companies that require ongoing large-scale capital reinvestment in hardware, our cloud mining business operates on a capital-light model. By leveraging our partners' mining facilities and power resources, we can access and deploy significantly more hash rate with limited capital outlay. This strategy expands our market reach and enables us to achieve high capital returns through rapid capital turnover. To secure hash rate supply, we rely first on our cell phone capacity and medium- to long-term procurement. typically 360 and 540 day orders. We complement this with shorter 90- to 120-day contracts to manage market price fluctuations.

This balanced approach provides the flexibility to adjust procurement prices based on market conditions while ensuring we have stable long-term hash rate to reliably meet customer demand, while temporary hash rate fluctuations may occur upon the expiration of some contracts, levels typically recover within 1 to 2 months. We deliberately avoid single supplier risk. Our partner network spans multiple jurisdictions globally, including North America, South America and Africa and comprises dozens of large-scale miners and mining farms.

Leveraging the powerful dispatch capabilities of our Aladdin platform, the system can seamlessly reallocate user hash rate demands to other healthy mining farms in the event of a temporary issue with any specific partner or region, ensuring an uninterrupted user experience. However, as we have consistently articulated and executed our core strategic objective is to transition from a purely asset-light model towards an integrated approach that balances both asset-light operations and strategic asset heavy investments.

Consequently, throughout the third quarter, we continue to increase our holdings of cell phone miners and actively pursued opportunities globally to either build or acquire mining facilities. Despite Bitcoin's rising acceptance we manage policy and regulatory risk with discipline. We evaluate new projects, whether in new regions or through mergers and acquisitions against the strict payback period benchmark and rigorous diligence before we proceed.

For example, our investment in October 2024 secured a majority stake in a mining facility in Ethiopia. Recently, Ethiopian Electric Power announced a new electricity tariff effective December 1, 2025, under which electricity charges vary from $0.035 per kilowatt off peak to $0.06 per kilowatt on peak. However, we do not interpret this adjustment as representing a shift in the government's policy towards the crypto mining industry. Even after the tariff increase, Ethiopia's electricity prices remain competitive on a global scale.

Due to BitFuFu's early mover presence in the region and our disciplined investment strategy, our operations in Ethiopia have to-date generated stable revenue and accumulated substantial profits. We expect these profits to fully cover all our upfront investment costs in Ethiopia in the near term. We consistently adhere to a philosophy of creating mutual benefits with local communities. Therefore, prior to any investment, we conduct comprehensive risk assessments and implement proactive measures to ensure long-term stable operations.

Meanwhile, we will continue to seek out quality power resources and cryptocurrency friendly regulatory environments worldwide, continuously enhancing our operational and investment returns. Beyond our cloud mining operations, we actively accumulate Bitcoins through our self-mining activities. While we allocated a portion of our self-owned hash rate to support cloud mining customers in third quarter based on strategic and operational considerations, this did not impede our Bitcoin accumulation.

We consistently leverage periods of price volatility as opportunities to acquire more Bitcoins. These combined strategies are all directed toward our ultimate goal of maximizing shareholder value. As of quarter end, total mining capacity of BitFuFu increased to approximately 36 exahash, supported by 624 megawatts of hosting capacity across our global footprint. Beyond the quarter's financial performance, we took meaningful steps to broaden our technology and infrastructure partnerships to position us for long-term growth.

Last quarter, we briefly discussed the opportunities for real-world assets or RWA and the potential to tokenize our hash rate. I am pleased to announce that we have signed a cooperation agreement focused on RWA sector, a strategic move to bridge our cloud mining business with broader capital markets. This initiative is designed to expand our market reach, serve a more diverse customer base within a compliant framework, lock in long-term customer demand and deepen partnerships with institutions.

Simultaneously, it is expected to provide the company with predictable cash flow, optimize our capital structure and advance our business model by leveraging traditional capital to drive hash rate expansion. We also previously said that we were evaluating opportunities to leverage low-cost natural gas in Canada for power generation. To that end, we are preparing to launch 2 natural gas-powered mining pilot in Canada to evaluate cost and uptime advantages of natural gas.

As I have previously stated, securing natural gas power generation capabilities could provide a long-term stable structural advantage in the unit cost of hash rate production. We hope to have a definitive agreement signed in the coming months. We also continue to seek ways to increase our geographic footprint and have expanded partnerships with local data center operators in the Middle East. We expect to begin by collaborating on hosting capacity and over time, pursue joint development of additional data centers to serve both our cloud mining customers and strategic hosting partners.

Finally, the HPC and AI sectors are currently a focal point of market attention, and we have received numerous inquiries from investors regarding our potential entry into this field and its timing. We have observed many of our peers transitioning their BTC mining data centers to support HPC and AI workloads. We are currently monitoring the landscape and evaluating potential opportunities in HPC. BitFuFu operates under an integrated asset-light and asset-heavy model, which distinctively sets us apart from competitors. Therefore, we will move a deliberate and disciplined pace that optimizes costs and strengthens the business' economic resilience.

We are committed to providing timely updates to our investors once strategic decisions are made and material progress is achieved. We believe initiatives like these combined with disciplined capital allocation and an efficient operating model set the stage for sustainable growth. With the fourth quarter underway, our focus is on operational execution and customer experience as we work to finish the year strong.

I will now turn the call over to Calla to provide more details on our financial results.

Thank you, Leo. Good morning, everyone. Now I would like to present our third quarter 2025 financial and operating results. This quarter marked the highest revenue quarter in BitFuFu's history, with total revenue reaching $180.7 million, representing 100% year-over-year growth. This achievement is particularly encouraging because it was delivered against the challenging backdrop of steadily increasing global hash rate and network difficulty despite an approximately 88% increase in the average price of Bitcoin compared to the same period last year.

In terms of the bottom line, third quarter 2025 net income increased to $11.6 million from a $5 million loss in the same period last year. Adjusted EBITDA was $22.1 million compared to $5.8 million in the same period last year. For the 3 months ended September 30, 2025, basic and diluted earnings per ordinary share were $0.07 compared to a $0.03 loss per share in the same period of 2024, this performance demonstrates the resilience of our business model and our disciplined execution.

Looking at the segments. Cloud mining revenue increased to $122.9 million, a 78% year-over-year increase and a 30% increase compared to the second quarter. For the quarter, cloud mining revenue accounted for 68% of total revenue. Self mining revenue was $20.1 million down slightly year-over-year but up almost 36% from the second quarter and represented 11% of total revenue. We experienced a sharp increase in mining equipment sales, with revenue increasing to $35.8 million, representing almost 20% of total revenue.

Since Leo thoroughly covered the revenue by business line, I will keep this brief and highlight a few metrics. In the cloud mining sector, customer demand for cloud hash rate grew strongly again this quarter with demand exceeding supply. New customers contributed approximately 33% of cloud mining revenue in the third quarter, while existing customers contributed approximately 67%. A standout metric I'd like to emphasize is our exceptional net dollar retention rate of nearly 120% for the third quarter of 2025, a clear indicator of the robust health and growth within our existing client base.

In the third quarter, we produced a total of 1,207 bitcoins, including 174 Bitcoins from self mining and 1,033 bitcoins generated through client cloud mining activities. Total quarterly costs were $173.5 million, which included depreciation and amortization expense of $7.5 million. This represents an increase of 94% compared to the same period in 2024 and is commensurate with the 100% increase in revenue. Operating expenses for the third quarter of 2025 declined 52.6% year-over-year due to lower stock compensation expense of $0.2 million versus $4.3 million in 2024.

Excluding the impact of stock compensation expense, total third quarter 2025 operating expenses as a percentage of revenue improved by 91 basis points year-over-year and 94 basis points sequentially demonstrating our focus on controlling costs while maintaining strong top line growth. As of September 30, 2025, the company held $32.6 million in cash and cash equivalents and $222.1 million in digital assets compared to $38.2 million and $129.9 million respectively, as of December 31, 2024. The 71% increase in digital assets was primarily driven by the company's treasury management strategy and a 22% increase in the price of Bitcoin from December 31, 2024 to September 30, 2025.

In addition, the company held $68 million in digital asset collateral receivables, which represents Bitcoin pledged to lenders in exchange for borrowings. The company's balance of cash and digital assets are sufficient to meet working capital requirements. We also proactively maintain suitable financing options to support future capital expenditures. In June 2025, we established a $150 million at-the-market ATM equity program. Over the past few months, we have issued approximately 1.5 million shares for $6 million from this program at a measured pace, mindful of dilution to existing shareholders. These smaller periodic issuances have also effectively enhanced the trading liquidity of our stock.

We are pleased to note that the average daily trading volume of the stock in the third quarter increased by 138% and 9.5% compared to the first and second quarters of 2025, respectively. The strong third quarter results underscore our ability to drive solid top line growth regardless of broader macro conditions. We continue to expand capacity and partnerships with measured CapEx, preserve ample liquidity and maintain a strong balance sheet. We remain committed to increasing our owned capacity footprint and tapping into new areas of growth to drive long-term value for our shareholders. This concludes my remarks.

I will now turn the call back to Leo.

To close the third quarter affirmed that our strategy is working. We are converting demand into strong revenue growth, scaling with discipline and widening our opportunity set. As we look ahead, we will deepen our core cloud mining franchise, advance our RWA cooperation with licensed compliant counterparties and progress the natural gas pilots in Canada while expanding our partnerships from hosting into future codevelopment. We will allocate capital prudently, prioritize cash generation and operational excellence and hold ourselves to the highest regulatory standards. Our mandate is clear, compound long-term shareholder value through reliable execution, thoughtful innovation and transparent communication. Thank you to our customers, partners, employees and shareholders for powering this momentum. Thank you.

This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.