BitFuFu (NASDAQ:FUFU) reported second-quarter 2026 results marked by lower cloud-mining revenue and a net loss amid weaker Bitcoin prices, while management emphasized growth in self-mining production, expansion of hosting services and investments in more efficient equipment.
Chairman and CEO Leo Lu described the quarter as a period of operational repositioning as the company adjusted its hash rate mix, expanded self-mining capacity and sought to improve cost efficiency. By the end of June, BitFuFu’s self-mining hash rate reached approximately 3.5 exahashes per second, up 9.3% sequentially.
Revenue Mix and Market Conditions
CFO Calla Zhao said cloud-mining solutions remained BitFuFu’s largest revenue source, generating $24.9 million, or 58.3% of total revenue. However, total revenue and cloud-mining revenue declined sharply from the prior-year period, which Zhao attributed largely to the differing Bitcoin-price environments.
Bitcoin prices rose from roughly $86,000 in April 2025 to more than $100,000 by June 2025, supporting customer demand and capacity expansion in that period, Zhao said. In contrast, the second quarter of 2026 followed two quarters of Bitcoin price pressure, causing customers and miners to delay new commitments.
BitFuFu’s cloud-mining net dollar retention rate was 24.1% during the quarter. Zhao said the decline primarily reflected existing customers reducing order volumes in response to lower Bitcoin prices and weaker mining economics, rather than a proportional loss of customers. The company said it is pursuing product enhancements and service innovation, including products designed to offer more stable outputs.
Self-mining operations generated $14 million in revenue. Zhao said the segment remained relatively stable despite a 27% decline in the average Bitcoin price, as increased allocated hash rate and improved fleet efficiency partly offset the pricing impact. Hosting and other services produced $3.9 million in revenue, supported by the scaling of the Buy and Host solution.
Costs, Loss and Operating Efficiency
Cost of revenue totaled $43.7 million, declining significantly from the second quarter of 2025 as the company adjusted its scale. Zhao said some high-cost hash rate procured during the fourth quarter of 2025 continued to pressure margins during the first half of 2026. However, BitFuFu said its procurement optimization efforts have secured more cost-efficient hash rate at prevailing market rates.
BitFuFu recorded a net loss of $20.5 million for the second quarter. Fair-value losses on Bitcoin holdings and digital-asset receivables and payables accounted for $16.9 million of that loss. Excluding the fair-value-loss impact, adjusted EBITDA would have been approximately negative $1.5 million, according to Zhao.
Lu said BitFuFu maintained average fleet efficiency between 17.8 and 18.1 joules per terahash during the quarter. The company uses its BitFuFuOS firmware system to overclock or underclock mining equipment based on market conditions and power prices, he said. At its Oklahoma mining site, Zhao said participation in optimized curtailment programs reduced electricity costs to approximately $0.03 per kilowatt-hour in June.
Capacity Expansion and Balance Sheet Actions
During the quarter, BitFuFu acquired approximately 3,200 latest-generation S21 XP miners and secured additional hash rate capacity in June and July. Management said the new capacity was expected to come online through August, positioning the company to return total managed hash rate to around 20 exahashes per second by mid-August.
As of June 30, BitFuFu held $119.5 million in cash and digital assets, down from $177.1 million at the end of 2025. Zhao said the reduction was primarily due to Bitcoin price depreciation and prepayments made to secure hash rate procurement.
- Total Bitcoin holdings were 1,671 Bitcoin as of June 30.
- Of those holdings, 54 Bitcoin were pledged as collateral for loans, down from 357 Bitcoin at March 31.
- The company repaid $10 million of Bitcoin-backed loans and replaced $3 million of Bitcoin-backed loans with unsecured loans.
- Outstanding loans totaled $5.4 million at quarter-end.
Zhao said the company limited equity issuance during the quarter and funded operations through operating cash flow, Bitcoin sales and its credit facility. BitFuFu’s board also authorized the repurchase of up to $5 million of Class A ordinary shares.
Outlook
Lu said BitFuFu will continue to evaluate power-market, infrastructure and hash rate opportunities while considering Bitcoin prices, macroeconomic conditions and mining economics in capital-allocation decisions. He said the company would not pursue headline hash rate growth at the expense of unit economics.
Management also pointed to changes in the wider mining sector, including some U.S.-listed miners transitioning power and infrastructure toward artificial intelligence and high-performance computing data centers. Lu said Bitcoin network difficulty reached approximately 156 trillion in November 2025, while global network hash rate had fallen about 20% from its peak by late June 2026 and was approximately 14% below its high for the year.
BitFuFu said it was named to TIME’s 2026 list of the World’s Growth Leaders and the Fortune Southeast Asia 500. The company said it remains focused on operating efficiency, competitive power access, disciplined procurement and flexible management of hash rate across market cycles.
About BitFuFu (NASDAQ:FUFU)
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.
