2024

Bitcoin

April

BitFuFu, a cloud mining company affiliated with <a href="https://ultramining.com/en/manufacturers/bitmain/" rel="noopener noreferrer nofollow">Bitmain</a>, has reported a dramatic surge in Bitcoin mining costs amid a significant expansion of its operations, according to its Q2 2024 financial and operational report, the average cost to mine one Bitcoin skyrocketed to $51,887, marking a 168% increase compared to the same period in 2023, where costs stood at $19,344 per BTC. This sharp rise is attributed to escalating <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> and operational expenses, compounded by the Bitcoin halving event in April 2024, which increased mining difficulty and slashed BTC rewards by half, according to <a href="https://cointelegraph.com/news/bitfufu-q2-2024-financial-report-btc-mining-cost-surge" rel="noopener noreferrer nofollow">Cointelegraph</a>.
Despite these challenges, BitFuFu expanded its mining capacity by over 60%, reaching 24.7 exahashes per second (EH/s) from 15.2 EH/s in 2023. This growth has also driven the company’s revenue up by nearly 70%, with total earnings of $129.4 million in Q2 2024, compared to $76.3 million in the same period last year. The increase in revenue is largely due to the expansion of BitFuFu’s cloud-mining services, which contributed $77 million during this quarter.
Bitcoin analysts remain optimistic despite the cost pressures, with experts like Matthew Sigel from VanEck suggesting that the worst of the "forced selling" is behind us. Sigel also noted that the current market trends are typical for the post-halving period, which usually lasts one to three months. This environment sets the stage for potential recovery as miners and investors adjust to the new dynamics in the crypto market.

BitFuFu’s Mining Costs Soar 168% Amid Capacity Expansion

Ultramining_Eng

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