Market

BitFuFu’s Net Income Soars 13X in Q1 2024: Here’s Why

Published

2 months ago

May 21, 2024

admin

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.

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 Price Performance. Source: TradingView

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.

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.

Source link

Related Topics:13X BitFuFus Heres Income Net Soars

Up Next

Arbitrum (ARB) Breaches Resistance Amid General Market Surge

Don't Miss

NEAR’s Market Cap Reached All-Time High Levels

Click to comment

Market

LayerZero On The Rise: ZRO Bullish Momentum Points To New Highs

Published

2 hours ago

July 6, 2024

admin

LayerZero (ZRO) is currently experiencing strong bullish momentum, positioning itself for potential new highs in the future. This sustained upward trend indicates growing investor confidence and increased market interest in the platform’s capabilities.

As ZRO continues to gain traction, technical indicators suggest that this momentum could drive the price to unprecedented levels. Traders and investors are closely monitoring this movement, anticipating further gains and strategic opportunities as LayerZero pushes toward new market peaks.

This article delves into providing an in-depth analysis of ZRO’s current bullish momentum and its potential to reach new highs. By examining current price performance and technical indicators, this article seeks to provide strategic advice for investors looking to capitalize on ZRO’s potential growth.

ZRO was trading at around $4.15 and was up by 36.66% with a market capitalization of over $456 million and a trading volume of over $816 million as of the time of writing. There has been a 24-hour increase of 36.62% and 152.75% in ZRO’s market capitalization and trading volume respectively.

Analyzing The Current Bullish Trend Of ZRO

A technical analysis of ZRO’s price action on the 1-hour chart reveals that the crypto asset is actively bullish and trading above the 100-day Simple Moving Average (SMA). Since facing rejection at the $2.69 support level, ZRO has been consistently bullish and is currently attempting to break above the $4.28 resistance level.

The formation of the 1-hour William alligator signals that the price of ZRO may continue to extend its bullish trend as both the alligator lip and teeth are currently trending above the jaw after a successful cross above it.

On the 4-hour chart, it can be observed that ZRO is actively bullish. Although the price is attempting a short-term pullback by dropping a bearish candlestick, the crypto asset may extend its bullishness in the long run.

Additionally, the 4-hour William alligator indicates more bearishness for ZRO as both the alligator lip and teeth are actively trending above the jaw after moving above it.

ZRO Price Forecast

Analyzing potential future possibilities of ZRO’s price movement reveals that if the digital asset breaks above the $4.28 resistance level, it may move higher to challenge its all-time high of $5.62. If this level is breached, ZRO might move on to create a new all-time high.

However, if the price of ZRO experiences rejection at the $4.28 resistance level, it will begin to descend toward the $3.27 support level. Should the asset breach this level, it may continue to decline to test the $2.69 support level and possibly move on to test other higher levels if it breaches the $2.69 level.

ZRO

Source link

Market

This Is How Ripple (XRP) Price Recovery Will Take Place

Published

4 hours ago

July 6, 2024

admin

Ripple (XRP) price momentum has turned bearish, and its potential for recovery has also cooled down.

One of the biggest reasons is the lack of activity among XRP holders, rendering their optimism useless.

Ripple Investors Try but Not Too Hard

XRP price is bound to be impacted by both the attempt and lack of participation noted among the investors. The presence of XRP holders remains weak, affecting the potential for recovery.

The low level of engagement is evident, with active addresses averaging under 20,000 on a daily basis. This lack of activity suggests a decrease in short-term trading and concern about bearing losses.

However, despite the weak participation, conviction among XRP holders remains strong. This is reflected in the Mean Coin Age (MCA), which has noted an uptick. The increasing MCA indicates that investors are holding onto their XRP for longer periods, showing faith in the asset’s future potential.

The rise in MCA also suggests that investors are refraining from moving their holdings around. By holding their assets rather than engaging in frequent transactions, they demonstrate a long-term belief in XRP. This behavior is often indicative of confidence in the cryptocurrency’s eventual recovery.

While the current low level of daily active addresses is a concern, the strong conviction shown by the uptick in MCA provides a silver lining. If this trend continues, it could help stabilize XRP’s price and support a potential recovery, as long-term holders typically contribute to market stability.

XRP Price Prediction: Tall Hike Ahead

The XRP price is trading at $0.43, recovering from the lows of $0.41 over the last 24 hours. Based on the aforementioned cues, consolidation is likely under $0.46. A breach, however, could help recover the recent losses.

XRP Price Analysis. Source: Tradi n gView

But if the bearish cues continue to dominate the altcoin, the XRP price could lose the critical support of $0.41 again. This would invalidate the bullish-neutral thesis, resulting in further drawdown.

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.

Source link

Market

Shiba Inu (SHIB) Price Recovery Likely as Losses Run up by 42%

Published

5 hours ago

July 6, 2024

admin

Shiba Inu’s (SHIB) price is bouncing back from four-month lows, looking to recover the losses witnessed in the past month.

Investors also have a shot at making the most of this opportunity, as selling will likely take a break for now.

Shiba Inu Investors Lose Big

While Shiba Inu’s price only declined by 15% over the last week, the impact on investors was three times larger. The total supply in profit dropped by close to 42%, falling from 75% to 33% in a day.

This is because about 434 trillion SHIB, worth $6.7 billion, was bought between $0.00001900 and $0.00001500. As the meme coin slipped to $0.00001281 during intra-day lows yesterday, this supply lost its profitability completely. This will keep investors from selling now, as such a large supply would only be sold when it bears profit again.

Shiba Inu Supply In Profit. Source: Santiment

Furthermore, most investors anticipating recovery and profits will likely turn to accumulation. The Market Value to Realized Value (MVRV) ratio suggests a good opportunity to do so.

The MVRV ratio assesses investor profit and loss. Currently, Shiba Inu’s 30-day MVRV stands at -14.5%, indicating losses, which may lead to buying pressure.

Historically, SHIB’s MVRV between -7% and -18% usually signals the start of recoveries and rallies, marking an opportunity zone for accumulation. This could help steer Shiba Inu’s price upwards.

SHIB Price Prediction: The Critical Range

The range between $0.00001473 and $0.00002093 is critical to Shiba Inu’s price as it houses 73% of all SHIB circulating supply. For this reason, the meme coin could find considerable resistance here.

Nevertheless, investors’ attempts to recover their profits would motivate them to push SHIB upwards. Once $0.00002093 is breached, the altcoin would have a shot at profits.

Shiba Inu Price Analysis. Source: TradingView

However, if this breach fails, Shiba Inu’s price might consolidate within this range. This would continue until stronger bullish cues help the coin escape; otherwise, the bullish thesis would be invalidated.

Disclaimer

Source link