Despite rising costs to mine Bitcoin, BitFuFu (NASDAQ:FUFU), the digital asset mining company based in Singapore, achieved double-digit growth in the third quarter. The company reported revenue of $90.3 million for the third quarter of 2024, a 47.5% increase year-over-year, and achieved adjusted EBITDA of $5.8 million. This quarter marked the first full quarter after the Bitcoin halving event in late April, which reduced the Bitcoin block subsidy from 6.25 to 3.125 Bitcoin per block.
BitFuFu (FUFU.US) has also attracted investor interest, highlighted by H.C. Wainwright analyst Kevin Dede’s initiation of coverage with a ‘Buy’ rating and a $7 target price for the stock.
“Despite the halving event BitFuFu had another successful quarter generating positive adjusted EBITDA,” said BitFuFu chairman and CEO Leo Lu during a conference call to discuss quarterly results. “I am proud to say that the third quarter of 2024 is the 11th consecutive quarter BitFuFu has generated positive adjusted EBITDA. This consistency demonstrates the profitability and resilience of our business model, regardless of whether the price of Bitcoin is in a bear market or bull market.”
What sets BitFuFu apart from its peers – such as Riot Platforms Inc (NASDAQ:RIOT), BitDeer (NASDAQ:BTDR) and MARA Holdings Inc. (NASDAQ:MARA) – is its unique approach of collaborating with mining partners to boost revenue and drive efficiencies rather than keeping it all in-house. This strategy, combined with its smaller, more focused business model, has positioned BitFuFu as a leader in growth within the industry. For instance, in the second quarter, BitFuFu reported revenue of $129.4 million and net income of $1.3 million. In comparison. Riot Platforms generated $70 million in revenue but reported a net loss of $(0.32) per share, while MARA recorded revenue of $145 million, but suffered a loss of ($0.72) per share.
| (In Millions) | Market Cap | Revenue | |||
| 2024 | 2024 | Y-o-Y growth | |||
| As of November 08 | Q2 | Q3 | Q2 Growth | Q3 Growth | |
| FuFu | 7.64 | 129.40 | 90.34 | 69.6% | 47.4% |
| Riot | 56.86 | 70.02 | 84.79 | -8.7% | 63.4% |
| Mara | 41.18 | 145.14 | 131.65 | 77.5% | 34.5% |
Compared to industry peers Riot Platforms (RIOT) and MARA Holdings (MARA), BitFuFU’s market capitalization remains relatively modest. However, BitFuFu …
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