Good day, and thank you for standing by. Welcome to BitFuFu's First Quarter 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Charlie Brady. Please go ahead.

Thank you, operator. Good morning, ladies and gentlemen, and welcome to BitFuFu's First Quarter 2025 Earnings Call. The company's financial results were released earlier today and are available on BitFuFu Investor Relations website at ir.bitfufu.com as well as on the globenewswire.com website. Joining me today on the call are Leo Lu, Chairman and CEO; and Calla Zhao, Chief Financial Officer. Before we begin, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from management's current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in the company's public filings with the SEC. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable law. We will be discussing non-GAAP financial information on this call. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release. One final note, although we will not be conducting a Q&A on this call, questions can be e-mailed to ir@bitfufu.com, and we will respond to as quickly as possible generally within 24 hours. I'll now turn the call over to Leo Lu, the company's Chairman and Chief Executive Officer.

Thanks, Charlie. Good morning, and thank you for joining BitFuFu's First Quarter 2025 Earnings Call. I'll briefly cover our first quarter performance and provide updates on our strategic growth initiatives. Before turning it over to Calla to cover our financial results in more detail. As expected, our first quarter revenue declined year-over-year due to the increased network difficulty and the April 2024 halving event which reduced the Bitcoin block subsidy from 6.25 to 3.125 Bitcoins. In the first quarter of 2025, we achieved total revenue of $78 million compared to $144 million in the first quarter of 2024. Net loss of $17 million and adjusted EBITDA of minus $11 million were significantly impacted by the unrealized fair value loss of digital assets and digital asset collateral receivables or payables, which was $19.4 million in total. We ended the first quarter of 2025 with total mining capacity under management of 20.6 EH/s and hosting capacity of 478 megawatts compared to 28.6 EH/s and 644 megawatts as of March 31, 2024. This decline was primarily driven by 2 temporary factors: First, certain hashrate procurement contracts expired during the quarter, while the new contracts were still under negotiation at the end of March, resulting in a short-term reduction in available mining capacity. Second, several of our suppliers underwent miner fleet relocations and hardware upgrades, which temporarily disrupted the flow of purchased hashrate. Despite these headwinds, we have seen a strong recovery in recent weeks. Earlier this week, we announced a significant rebound in total mining capacity under management. By April 30, our hashrate had increased to 28.3 EH/ s, nearly matching the levels we achieved as of March 30 last year. This momentum continued into May with hashrates reaching 34.1 EH/s by month end. It's important to note that much of the hashrate…

Thank you, Leo. Good morning, everyone. I will now provide a deeper dive into our financial performance for the first quarter of 2025. Total revenue for the quarter was $78 million, representing a 46% decrease from $144.4 million in the same period of 2024. In first quarter 2024, with a hashrate as high as 28.6 EH/s and before the impact of halving we recorded the highest revenue in the fourth quarter of 2024. Although we acquired more self-owned miners in the fourth quarter of 2024 and energized those miners in the first quarter of 2025, the temporary decrease in procured cash rate from suppliers, as explained by Leo just now, led to a decline in the scale of the first quarter. During the first quarter of 2025, we allocated the majority of our total hashrate to cloud mining services, leading to cloud mining revenue accounting for around 69% of our total revenue. In the past quarter, 86% of the average daily mining capacity provided by our self-owned miners were used for self-mining operations, and the rest 14% were used for cloud mining operations. 88% of the average daily mining capacity provided by the lease miners or third-party suppliers were used for cloud mining services. And the rest, 12% were used for self-mining operations. Our decision of mining capacity allocation was driven by continued strong demand from customers and near-term market volatility. In the first quarter of 2025, we reported a net loss of $16.8 million, primarily due to the mark-to-market adjustment on Bitcoin holdings between December 31 and March 31. Adjusted EBITDA was negative $10.8 million, also impacted by this noncash revaluation However, if excluding the $19.4 million unrealized fair value losses of digital assets and digital asset collateral receivables or payables, our adjusted EBITDA would turn to approximately $8.6…

Thanks, Calla. Before we conclude, I want to thank our employees, partners and shareholders for their continued support and trust. We entered 2025 with clear priorities: scale our mining capacity, strengthen our infrastructure. broaden our supply chains and deepen our customer relationships. I'm proud to say, we've made meaningful progress on all fronts. Despite evolving market conditions, including regulatory developments and macro uncertainty, we remain focused on disciplined execution and long-term value creation. With a strong foundation in place, a diversified global footprint and growing demand across our service offerings, we believe we are well positioned to capture the next phase of growth in the Bitcoin mining ecosystem. Thank you again for joining us today. We look forward to updating you on our continued progress in the quarters ahead. Thank you.

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.