B. Riley has started its coverage on BitFuFu (FUFU, Financial) by assigning a Buy rating and setting a price target of $7.31. BitFuFu is a company specializing in bitcoin mining, offering cloud mining services to a wide customer base. Currently, it is increasing its own mining operations and planning to enhance its power infrastructure ownership in the near future. Analysts highlight the company's strong market position in cloud mining, a varied revenue structure, and a platform that can scale effectively.
FUFU Key Business Developments
Release Date: June 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BitFuFu Inc (FUFU, Financial) announced a significant rebound in total mining capacity, reaching 34.1 exa hash by the end of May 2025, indicating strong recovery and growth.
- The company successfully closed the acquisition of a mining facility in Oklahoma, advancing its vertical integration strategy and increasing self-owned hashrate.
- BitFuFu Inc (FUFU) expanded its global footprint by adding new customers in key growth markets in Africa and Asia, diversifying its revenue base.
- The company achieved an 18% reduction in average electricity prices compared to the first quarter of 2024, optimizing its cost structure.
- BitFuFu Inc (FUFU) secured access to up to 80,000 Antminer S21 series, ensuring ample supply to support business development and maintain competitiveness.
Negative Points
- First quarter 2025 revenue declined by 46% year-over-year to $78 million, impacted by increased network difficulty and the April 2024 Bitcoin halving event.
- The company reported a net loss of $16.8 million, primarily due to the mark-to-market adjustment on Bitcoin holdings.
- Adjusted EBITDA was negative $10.8 million, affected by a $19.4 million unrealized fair value loss of digital assets.
- Total mining capacity under management decreased to 20.6 exa hash from 28.6 exa hash as of March 31, 2024, due to expired contracts and supplier disruptions.
- The company faces potential risks from US tariffs on mining hardware sourced from Southeast Asia, which could impact its cost structure.
