BitFuFu (NASDAQ:FUFU) Releases Earnings Results, Misses Estimates By $0.11 EPS

BitFuFu (NASDAQ:FUFU) issued its quarterly earnings data on Monday. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.11), FiscalAI reports. BitFuFu had a negative net margin of 16.06% and a negative return on equity of 3.81%. The firm had revenue of $42.76 million for the quarter, compared to analysts’ expectations of $75.02 million.

Here are the key takeaways from BitFuFu’s conference call:

• Self-mining production increased substantially: Self-mining hash rate rose 9.3% quarter over quarter to approximately 3.5 EH/s, while monthly production nearly tripled from 32 Bitcoin to a peak of 90 Bitcoin. Management expects total managed hash rate to return to roughly 20 EH/s by mid-August.
• Hosting and infrastructure expansion gained momentum: Hosting revenue grew 254% year over year, driven largely by the Buy and Host offering. BitFuFu also acquired approximately 3,200 S21 XP miners and secured additional capacity for the second half of the year.
• Lower Bitcoin prices pressured demand and results: Cloud mining revenue was $24.9 million, while net dollar retention fell to 24.1% as customers reduced order volumes. The company reported a $20.5 million net loss, including $16.9 million of fair-value losses on Bitcoin-related assets and liabilities.
• Cost controls and fleet efficiency remained strong: Average fleet efficiency held at 17.8–18.1 joules per terahash, and electricity costs at the Oklahoma site declined to approximately $0.03 per kilowatt-hour in June through curtailment programs. Adjusted EBITDA excluding fair-value losses was approximately negative $1.5 million.
• Management strengthened the balance sheet: BitFuFu repaid $10 million of Bitcoin-backed loans, reduced pledged Bitcoin to 54 BTC, and ended the quarter with $5.4 million of outstanding loans. The board also authorized up to $5 million in share repurchases, although cash and digital assets declined to $119.5 million from $177.1 million at year-end.

BitFuFu Stock Performance

NASDAQ FUFU opened at $1.29 on Tuesday. BitFuFu has a 52-week low of $1.23 and a 52-week high of $4.32. The company has a debt-to-equity ratio of 0.81, a quick ratio of 4.16 and a current ratio of 4.16. The company has a market capitalization of $214.93 million, a P/E ratio of -2.93 and a beta of 0.46. The company has a fifty day moving average of $1.45 and a 200-day moving average of $1.96.

BitFuFu announced that its board has authorized a stock buyback plan on Monday, June 22nd that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

FUFU has been the subject of a number of recent analyst reports. Wall Street Zen lowered shares of BitFuFu from a “hold” rating to a “sell” rating in a research report on Saturday, June 6th. Zacks Research raised BitFuFu from a “strong sell” rating to a “hold” rating in a research note on Friday, July 31st. Finally, Weiss Ratings restated a “sell (d)” rating on shares of BitFuFu in a research report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $5.00.

Hedge Funds Weigh In On BitFuFu

A number of large investors have recently added to or reduced their stakes in FUFU. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of BitFuFu by 51.3% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 247,703 shares of the company’s stock worth $929,000 after purchasing an additional 83,984 shares during the last quarter. Vident Advisory LLC raised its position in BitFuFu by 24.3% during the 2nd quarter. Vident Advisory LLC now owns 245,497 shares of the company’s stock valued at $793,000 after purchasing an additional 47,987 shares during the last quarter. Vontobel Holding Ltd. lifted its holdings in BitFuFu by 12.6% in the 4th quarter. Vontobel Holding Ltd. now owns 156,986 shares of the company’s stock worth $413,000 after buying an additional 17,605 shares during the period. Invesco Ltd. purchased a new stake in BitFuFu in the 2nd quarter worth approximately $321,000. Finally, Renaissance Technologies LLC lifted its holdings in BitFuFu by 24.7% in the 4th quarter. Renaissance Technologies LLC now owns 54,000 shares of the company’s stock worth $143,000 after buying an additional 10,700 shares during the period. Hedge funds and other institutional investors own 37.26% of the company’s stock.

BitFuFu Company Profile

BitFuFu Inc provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.