BitFuFu Fifth Anniversary: Building Across Cycles

Leo Lu, Chairman and CEO of BitFuFu

In 2017, I first entered the world of digital assets when the price of Bitcoin was still hovering around $3,000. What struck me most at the time, and has been repeatedly validated over the years, is Bitcoin's resilient vitality. Despite enduring numerous bear markets, Bitcoin’s user adoption and holder base have continued to grow, institutional acceptance has deepened, and its infrastructure has steadily improved.

I consider myself fortunate to have entered this field in 2017, and am even more grateful for the opportunity five years ago to establish BitFuFu, contributing to the development of the Bitcoin ecosystem.

Lowering barriers

When I founded BitFuFu in 2020, Bitcoin mining had already begun to industrialize. For most users wishing to participate in mining, the barriers had become significantly higher. While mining Bitcoin is less costly than directly purchasing it, doing so requires precise control over costs and efficiency. The challenges involved are complex: procuring equipment, arranging logistics, managing hosting, deploying monitoring systems, coordinating maintenance, and ensuring stable operations, as any interruption can lead to losses.

These challenges, which professional institutions might handle with relative ease, are daunting for individuals. BitFuFu was established precisely to lower the barriers for individual participation.

My goal is to create a cloud-based mining platform for global users where they simply need to log in and purchase computing power to begin mining Bitcoin, without worrying about hardware, logistics, or operations—all complex aspects are handled by us.

I believe this is the most efficient way for users to acquire Bitcoin at a reasonable cost while also participating in maintaining the security of the Bitcoin network. However, cloud-based mining services lacking transparency cannot earn user trust.

Transparency first (2021)

Cloud-based computing power is not a new concept, but in the past, many users lacked trust in this field. Some platforms damaged the industry’s reputation due to opaque operations, unverifiable data, and unfulfilled promises. Therefore, from day one, BitFuFu prioritized establishing transparency as our primary mission.

Through our platform, users can lease reliable computing power with clear and verifiable returns. They are able to designate mining pools like traditional miners, monitor their computing power in real time, oversee the entire process from third-party mining pools to personal wallets, and maintain autonomous management and control. The underlying technology is our self-developed Aladdin system, which enables meticulous management, segmentation, and allocation of large-scale computing power. These early foundations have since become our most solid competitive advantage.

2021 was a year of rapid growth for BitFuFu. In April, we launched cloud-based computing power services using the Antminer S19 Pro, bringing institutional-grade efficiency to individual users. In May, we introduced customized private mining solutions for large-scale clients. At the same time, we expanded our global operations, seeking compliance and sustainable development environments.

Navigating the Bear Market (2022-2023)

In the following years, the cryptocurrency market faced severe challenges. Amid Bitcoin's extreme volatility, many mining companies encountered difficulties due to overexpansion, excessive leverage, or overly concentrated strategies.

We chose a more prudent path, gradually refining a unique 'dual-engine model': providing cloud-based mining services to global users for steady cash flow while maintaining proprietary mining as a long-term exposure to Bitcoin. This flexibility allows us to adjust computing power allocation based on market dynamics.

In December 2022, even at the lowest point of the bear market, we launched the industry’s first cloud-based computing power service featuring the Antminer S19 XP. The S19 XP represented the cutting edge of mining efficiency at the time, and we made it accessible to users worldwide. During those years, we also built a globally distributed network covering regions such as North America and Africa. By the end of 2023, we had become one of the most geographically diversified mining companies in the industry.

Throughout 2023, despite Bitcoin’s volatility, demand for our services continued to grow. We dynamically adjusted service pricing based on Bitcoin’s price movements, allowing us to attract users during downturns while increasing user engagement during price rallies.

Going Public and Strategic Expansion (2024)

By 2024, years of prudent operations had borne fruit. According to a Frost & Sullivan report, BitFuFu had become the world’s largest cloud-based computing power platform, serving hundreds of thousands of users and achieving annual profitability.

On March 1, 2024, we went public on Nasdaq (stock ticker: FUFU), marking one of the most exciting moments of my life. The day before, we drove from Boston to New York, and I barely slept that night. I prepared a new suit but almost forgot my tie, eventually buying one just before the bell-ringing ceremony.

Going public is not only about raising capital, but also a commitment to the highest standards of transparency, governance, and accountability. For BitFuFu, these requirements align closely with our philosophy: large-scale mining must be compliant, transparent, and reliable.

As we scale up, our strategies evolve accordingly. In October 2024, we signed an agreement to acquire a majority stake in an Ethiopian mining facility, marking our first self-owned mining operation. This represents a critical step towards upstream asset control and managing electricity costs. By operating independently, we can better optimize performance, control costs, and deepen our position in the value chain. Given Africa’s abundant hydropower resources, this initiative in Ethiopia also reflects our commitment to sustainable and diversified energy sources.

In December of the same year, we signed a two-year framework procurement agreement with Bitmain for up to 80,000 units of the S21 series mining machines. This is one of the largest equipment procurement agreements in the industry, ensuring our continued access to high-efficiency hardware as we expand.

The Journey Continues (2025)

Entering 2025, BitFuFu has further accelerated its pace.

We launched BitFuFu Mining Pool’s aggregated computing power and introduced BitFuFuOS, which boosts mining efficiency by up to 20%. By providing these tools, we are gradually achieving full coverage from mining farms to services, creating a true one-stop mining platform.

In February 2025, we acquired a Bitcoin mining facility in Oklahoma, marking our entry into the U.S. market with self-owned infrastructure. North America has always been a strategic focus for us, and this facility enhances our global footprint, giving us access to low-cost, reliable energy in mining-friendly jurisdictions.

This year, BitFuFu’s peak managed computing power has exceeded 38 EH/s, with peak electricity capacity reaching 752 megawatts. Our business portfolio encompasses cloud computing power, proprietary mining, hosting, and equipment services, with a continuously growing global user base. Since our founding, we have cumulatively mined nearly 30,000 Bitcoins, consistently delivering value to our customers.

Looking Ahead

The next phase for BitFuFu will involve a transition from a light-asset model to a more flexible, integrated approach that incorporates strategically owned assets.

We will continue to invest in energy innovation, mastering the entire chain from fuel to electricity and exploring self-generated power mining. We will further expand our mining service platform, explore financial innovation by integrating mining outputs with real-world assets (RWA) through compliant methods, and prudently advance our global strategy, tapping into new regions and partnerships.

The core concept that underpins all of this has never changed: Bitcoin mining is the infrastructure of a decentralized future. We are building for the next decade, for all those who believe in Bitcoin. We remain committed to monitoring the development of the Bitcoin ecosystem and contributing to its growth.

Acknowledgments

A five-year journey is never solitary.

To our users: At a time when trust was scarce, you chose us. Your belief sustained us through the most challenging moments. You are the reason we exist.

To our partners: You have grown alongside us, extending your trust and helping us achieve what we are today.

To our team: You have solved countless challenges and executed with determination amid uncertainty. Every milestone belongs to you.

To the Bitcoin community: Your belief in an open and resilient network inspires everything we build.

Five years is a milestone, but for BitFuFu, it is only the beginning.

The journey continues.