Market
BitFuFu’s Net Income Soars 13X in Q1 2024: Here’s Why
BitFuFu, a leading digital asset mining service provider, announced a substantial increase in its net income for the first quarter of 2024. The company’s net income soared to $35.3 million, up from just $2.7 million in the same period last year, marking a significant 13-fold increase.
BitFuFu is not the only crypto miner to record stellar performance in the first quarter of 2024. Various other crypto-mining companies also achieved remarkable growth in the same period.
BitFuFu Stock Underperforms Despite Positive Q1 Reports
BitFuFu credits this growth to its strategic cloud-mining solutions and robust Bitcoin self-mining operations. Total revenue for the quarter reached $144.4 million, a 149% increase from the previous year’s $58.0 million.
Moreover, cloud-mining revenue, which surged to $81.5 million, up 181% from the prior year, was a considerable part of this growth.
The company’s Bitcoin self-mining operation revenues reached $60.1 million, up 117% from last year. This was facilitated by optimized mining operations and favorable market conditions, although a higher mining difficulty slightly impacted overall Bitcoin output.
Read more: BitFuFu Review 2024: A Guide to The Cloud Mining Platform
Leo Lu, CEO and Chairman of BitFuFu commented on the results, emphasizing the benefits of their business model.
“Our cloud-mining solutions allow us to reduce revenue volatility created by sharp swings in digital asset prices and significantly strengthen cash flow by pre-selling hashrate at a fixed price that can be invested in expanding our business,” Lu said.
Regarding operational costs, the cost of revenue climbed to $122.7 million, representing a 120.7% increase. This rise was primarily due to expanded operations in cloud-mining and self-mining.
The company’s EBITDA also showed positive trends, with adjusted figures reflecting a 430.9% increase to $49.9 million. This includes an $11.8 million unrealized gain on Bitcoin, attributed to the early adoption of new accounting rules for digital assets.
Despite these strong financial outcomes, BitFuFu’s stock experienced a decline of over 6% on May 20, 2024, with a significant year-to-date drop of over 60%.
BitFuFu’s Q1 2024 report aligns with the broader industry trend. Notably, other crypto miners like Core Scientific have also reported strong performances.
Core Scientific rebounded from bankruptcy, reporting a net income of $210.7 million in the first quarter of 2024. Its recovery was largely due to a strategic overhaul of operations and financial management, which included significant gains from extinguishing pre-emergence obligations.
Read more: Best Crypto Mining Stocks to Buy or Watch Now
Marathon Digital also showcased impressive results in the same period, with revenues soaring by 223% year-over-year to $165.2 million. Its net income increased by 184% to $337.2 million, bolstered by efficient operational advancements and increased Bitcoin mined.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
WLD Price Up 19% as Smart Money Drop to Record Lows
Worldcoin (WLD) price has jumped 19% following Donald Trump’s announcement of a $500 billion investment in AI infrastructure. This surge has reignited interest in WLD, pushing it closer to a potential golden cross on its EMA lines, a bullish signal for further gains.
If momentum continues, WLD could test key resistance levels at $2.41 and $2.83, with the possibility of surpassing $3.16, a milestone not seen since December 2024. However, caution remains as indicators like BBTrend and Smart Money movements suggest the rally may face challenges in sustaining its strength.
Smart Money Holding WLD Just Reached an All-Time Low
The number of smart wallets holding WLD reached an all-time high of 43 on November 14, collectively holding 183 million WLD. However, this number has been in steady decline, with the current count at an all-time low of 26.
Notably, Multicoin Capital alone holds approximately 94 million WLD, reflecting significant concentration among fewer wallets. This decline in the number of smart wallets suggests a shift in distribution dynamics and potential changes in market behavior surrounding WLD.
Tracking smart money is crucial, as it often belongs to institutional investors or high-net-worth individuals who can significantly influence market trends.
The current all-time low in smart wallet holdings, despite Worldcoin price surge, could indicate reduced confidence among large holders or a reallocation of funds to other AI-related coins such as VIRTUAL, TAO, and RENDER and other ecosystems such as Solana.
WLD BBTrend Shows Positive Momentum
Worldcoin BBTrend is currently at 1.8, marking its highest level in three days. BBTrend, a Bollinger Bands-based indicator, measures trend strength and direction. A rising BBTrend suggests increasing momentum, while higher values typically indicate stronger bullish trends.
Although WLD’s BBTrend is climbing, it remains significantly below last week’s peak of 6.5, reflecting reduced momentum compared to the prior rally.
The current BBTrend at 1.8 signals a positive but subdued trend for Worldcoin. While the price action suggests some recovery, the relatively low BBTrend level compared to last week highlights that the bullish momentum has not fully returned.
This could indicate a cautious market, with WLD needing stronger upward momentum to revisit prior highs or sustain a strong uptrend.
WLD Price Prediction: Can It Rise Above $3 Again?
Worldcoin price has surged nearly 19% in the past 24 hours, driven by excitement around Donald Trump’s $500 billion investment in AI infrastructure, which prominently involves Sam Altman, cofounder of OpenAI and Worldcoin.
This renewed interest has pushed WLD closer to a potential golden cross on its EMA lines, a bullish signal that could propel the price to test resistance at $2.41. If this level is broken, WLD could target $2.83. With continued hype around AI-related coins, it may even test $3.16, surpassing $3 for the first time since December 2024.
However, indicators like Smart Money movements and BBTrend suggest the current rally may lack sustained strength. If momentum wanes, WLD price could retrace to test supports at $2.11 and $2.01.
A break below these levels could lead to a drop as low as $1.83, signaling a sharp reversal despite the recent bullish sentiment.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
USDC Liquidity Reaches Highest Point Since February 2023
According to a new report from CryptoQuant, USDC liquidity is at its highest level since February 2023. The report noted that Circle typically mints this many tokens in bearish periods.
USDC’s market cap has also increased by over $9 billion in the past month.
Circle’s USDC Liquidity Keeps Growing
CryptoQuant, a respected blockchain analysis firm, released a brief report today on USDC liquidity. Apparently, Circle minted enough USDC stablecoins to reach its highest level in nearly two years.
The report also claimed that a long-running partnership with a crypto market maker possibly contributed to this minting event:
“It is speculated that this is related to a strategic partnership with Cumberland, a market maker well known in the ETF space. It is unclear whether this liquidity will be deployed immediately or held in reserve. Looking at past [BTC] price patterns, USDC liquidity has typically been injected during periods of price consolidation or decline,” it claimed.
USDC is a popular stablecoin issued by Circle, although its dominance is significantly lower than Tether’s USDT. Still, the report’s assertion that USDC liquidity usually spikes in bearish periods seems odd compared to Circle’s performance.
The firm recently made a major political contribution, and its long-running plan to challenge Tether’s EU market dominance is paying off. In response to Circle’s EU play, Tether also began minting huge amounts of its own stablecoin.
However, this liquidity injection doesn’t quite seem to match USDC’s scenario in a few ways. Instead, the price of Bitcoin might be a better reference point, as it spiked recently.
At the moment, it’s difficult to anticipate what exactly Circle plans to do with this USDC liquidity. The firm’s plan to challenge Tether in Europe has been going well, and it acquired Hashnote Labs yesterday. It also partnered with Aptos to tap into the US TradFi market.
Yet, the firm also carried out substantial layoffs last month. So, Circle’s current financial state is still questionable. The stablecoin issuer is likely reallocating its assets in different avenues to ensure sustainable financial growth under the new regulatory environment – in both the EU and US.
For now, this minting event is one of the clearest windows into Circle’s overall health. Regardless of what it intends to do, this USDC liquidity will give it a broader range of options for the future.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Bitwise Files for Dogecoin ETF Amid Growing Meme Coin Interest
Bitwise, the crypto asset management firm, has submitted an application for a Dogecoin ETF through a Delaware trust.
This step is limited to registering the trust and still requires a formal filing with the SEC for approval.
Meme Coin ETFs Are Gaining Attention
A surge in ETF filings has emerged since Gary Gensler stepped down as SEC Chair last Friday. Among these filings, meme coin ETFs are capturing significant interest.
Rex Shares recently submitted applications for ETFs involving TRUMP, BONK, and DOGE, alongside Bitcoin and Ethereum ETFs.
Earlier today, BONK saw a price surge driven by increased investor interest following Rex Shares’ ETF filing. The rising demand for BONK signals the possibility of sustained price momentum. Dogecoin could witness similar price action if its ETF application gains approval.
Back in September 2024, Bitwise’s Matt Hougan expressed optimism about ETF opportunities for Solana and meme coins.
Growing Institutional Interest in Meme Coins
Interest in meme coins has grown significantly in recent days. The launch of the TRUMP meme coin by the US President has played a major role in this trend.
Reports show that 40% of TRUMP coin buyers were first-time crypto investors, highlighting the appeal of meme coins beyond the crypto sector. This could explain why firms like Bitwise are moving quickly to develop an ETF for Dogecoin, a leading meme coin.
Meme coins are also entering institutional markets outside the US. Floki also plans to launch an exchange-traded product (ETP) in Europe by early 2025.
Meanwhile, analysts believe Litecoin could become the first altcoin after Ethereum to secure ETF approval. Nasdaq has already filed Form 19b-4 to list Canary Capital’s proposed Litecoin ETF. This filing aligns with Canary’s recent S-1 amendment and feedback from the SEC.
Overall, with Bitwise’s latest filing, it’s evident that asset managers are looking to bring meme coins to the retail investment markets soon.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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