FUFU

• Core Strategic Execution & Operational Progress • Q2 2026 was defined as a pivotal period for proactive strategic positioning ahead of the second half of 2026, with focus on optimizing hash rate mix, upgrading platform capabilities, and driving operational efficiency. • The firm acquired 3,200 latest-generation S21 XP miners during the quarter, and secured additional hash rate capacity in June and July that will come online in August. Total managed hash rate is on track to return to ~20 exahash per second by mid-August 2026. • Average fleet energy efficiency stayed between 17.8 and 18.1 joule per terahash through the quarter, a level that is competitive by global industry standards and supports low baseline production costs. • BitFuFu's dynamic firmware-based power management adjusts overclocking/underclocking in real time based on market conditions and power prices, reducing energy costs at the Oklahoma mining site to approximately 3 cents per kilowatt hour in June 2026.

• Business Model Differentiation • The combined cloud mining + self-mining model provides commercial flexibility to dynamically reallocate capacity based on changing economics, customer demand, and market cycles. Management prioritizes hash rate quality and profitability over raw scale for scale's sake, and proactively adjusted procurement strategy and contract duration mix when third-party contract economics no longer met internal requirements.

• Industry Landscape Outlook • The global Bitcoin mining industry is undergoing major structural transformation: market conditions remain challenging due to ongoing Bitcoin price volatility and limited macroeconomic tailwinds, but competition is becoming increasingly differentiated as some miners shift existing power and infrastructure to AI and high-performance computing (HPC) applications. • As of late June 2026, global Bitcoin network hash rate has declined ~20% from its peak and ~14% from 2026's annual high, with capacity shifted away from Bitcoin mining unlikely to return to the network. This dynamic creates improved operating conditions and better profitability for miners that remain focused on Bitcoin mining.

• Capital Management Discipline • The firm maintained a strong balance sheet as of June 30, 2026, with total cash and digital assets of $119.5 million, and total Bitcoin holdings of 1,671 Bitcoin (only 54 Bitcoin pledged as loan collateral, down from 357 Bitcoin at the end of Q1 2026). • Management completed limited equity issuance in Q2 2026 to avoid shareholder dilution, repaid $10 million in Bitcoin-backed loans to reduce leverage and strengthen resilience, and obtained board approval for up to $5 million in Class A ordinary share repurchases to reflect confidence in long-term business value.

• Management confirmed that the proactive capacity expansion actions taken in Q2 2026 put the firm on track to restore total managed hash rate to approximately 20 exahash per second by mid-August 2026, providing clear visibility into second half 2026 capacity growth.
• Management reaffirmed its long-term confidence in the fundamental value of Bitcoin and sustained global demand for high-quality Bitcoin computing power and mining infrastructure.
• The firm will maintain strategic and capital allocation flexibility, continuing to evaluate high-quality infrastructure and hash rate capacity acquisition opportunities that fit the company's risk framework, while prioritizing proven unit economics and strategic value over rushed expansion.
• No formal numerical revenue or profit guidance was provided in the call, but management positioned the firm to capture improved industry profitability as market conditions recover.

BitfuFu Inc. reported total revenue of $42.8 million in Q2 2026. 1. Cloud Mining Solutions: This is the firm's largest revenue segment, generating $24.9 million in revenue, which accounts for 58.3% of total company revenue. The segment's net dollar retention rate was 24.1%, with the decline driven by existing customers reducing order volumes amid lower Bitcoin prices. 2. Self-Mining Operations: This segment contributed $14.0 million in revenue. It remained relatively stable despite a 27% drop in average Bitcoin prices, as increased allocated hash rate and improved energy efficiency offset the impact of lower cryptocurrency prices. By the end of Q2 2026, self-mining hash rate reached 3.5 exahash per second, up 9.3% quarter-over-quarter, and monthly self-mining production nearly tripled during the quarter from 32 Bitcoin to a peak of 90 Bitcoin. 3. Hosting and Other Services: This segment generated $3.9 million in revenue. It saw a meaningful year-over-year increase driven by continued scaling of the firm's popular buy-and-host solution, which delivers recurring revenue from clients seeking asset ownership and simplified mining operations. Hosting revenue grew 254% year-over-year.

• The Bitcoin mining industry faces ongoing risk from Bitcoin price volatility, which pressured customer demand for cloud mining products and reduced segment revenue in Q2 2026, and led to a $16.9 million fair value loss on BitFuFu's Bitcoin holdings and digital asset positions that contributed to the quarter's $20.5 million net loss.
• High-cost hash rate procured in Q4 2025 created margin pressure for the first half of 2026, though the company noted that procurement optimization efforts are already mitigating this impact.
• Forward-looking statements are inherently uncertain, and actual future results may differ materially from management expectations due to unforeseen changes in market conditions, with full risk details available in the company's SEC filings.

BitFuFu announced that it would not conduct a live Question and Answer session during this earnings call. The company requested that analysts and investors send any questions via email to the firm's investor relations inbox, with a commitment to respond to all submitted questions within 24 hours.