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About a month ago, I covered BitFuFu (FUFU) when shares traded around $3.50; they closed at $4.03 on Monday, marking roughly a 15% gain. Will it go further? Very likely, as the company just delivered another round of impressive operational metrics, highlighted by record hashrate, rising bitcoin production, and growing power capacity. Coupled with a sustained rally in Bitcoin’s market price, these developments underpin my bullish outlook on FUFU shares. In this report, I’ll walk through the key operational highlights from BitFuFu’s July update, examine valuation considerations and potential risks, and share my personal take on where the company stands today.

July 2025 Operational Highlights

Source: BitFuFu July 2025 Operations Update

A few personal observations:

Hashrate Growth: I was particularly impressed by the steady ramp in hashrate. A 6.6% gain in a single month demonstrates disciplined capital deployment and supplier relationships amid global supply constraints. BitFuFU now operates on five continents, managing 752 MW of power. 

Self-Mining Efficiency: The 43% jump in self-mining output speaks to improved utilization and on-site optimizations, an encouraging sign that BitFuFu is wringing more BTC per watt from its existing farms. Self-mining output rose sharply, and total Bitcoin holdings reached 1,784 BTC, ranking sixth in Asia. As I discussed in the previous article, BitFuFu operates a dual-engine mining model: Direct operation of mining farms (Self Mining), enabling full capture of block rewards and optional on-chain asset accumulation. Another important business sector is Cloud Mining Services: subscription-based access for over 629,487 users, democratizing mining exposure without the complexity of hardware management, and the company has gained over 6k new users in July alone. Sustaining over half a million active subscribers indicates strong competitive positioning in the cloud-mining market and supports recurring revenue stability. Moreover, this hybrid approach not only smooths revenue volatility but also scales more capital-efficiently.

Valuation:

I’ve run a simple sum-of-parts valuation analysis for the company:

• Self-Mining Value: Assuming a modest 10x forward EBITDA multiple, given the secular tailwinds and low cost structure.
• Cloud Mining Platform: Priced as a SaaS-like annuity business at ~8x EBITDA.
• Treasury BTC: Mark-to-market at $115k/BTC.

Using an annualized production of 4,608 BTC from cloud mining and 996 BTC from self-mining at $115,000 per BTC, we estimate $529 million in cloud revenue and $114.5 million in self-mining revenue. Applying a 15% EBITDA margin to the cloud business yields $79 million, while a 30% margin on self-mining generates $34 million, for a combined run-rate EBITDA of $114 million. Capitalizing that EBITDA at 8× for cloud and 10× for self-mining results in enterprise values of $635 million and $344 million, respectively—$978.3 million in total. Adding the $205 million mark-to-market value of the company’s 1,784 BTC treasury gives an equity value of $1,183 million. Dividing by 163 million shares outstanding implies a fair value of approximately $7.26 per share, implying a roughly 81% upside from current levels.

Of course, like any other crypto related stock, the primary risks now center on Bitcoin’s inherent price volatility, which can swiftly erode both mining revenues and the value of BitFuFu’s BTC treasury, alongside potential execution challenges as the company scales new facilities and grid connections globally, and competitive pressure from relentless hardware upgrades and margin compression in the industry, even as the recently passed GENIUS Act and other supportive measures have notably reduced regulatory uncertainty around crypto mining.
 

Conclusion:

I’ve been following BitFuFu since its IPO, and July’s update is one of the stronger operational reports I’ve seen in the space this summer. The combination of robust hashrate growth, notable self-mining efficiency gains, and a fortified BTC treasury all point toward continued earnings leverage if Bitcoin’s bull market persists.

While I remain mindful of the inherent volatility in crypto mining, I believe BitFuFu’s dual-engine model, disciplined capital deployment, and expanding scale position it well for capital appreciation. Despite distributing 8 BTC for vendor payments, BitFuFu still holds 1,784 BTC on its balance sheet as of July 31, offering a solid crypto-asset buffer. Recent U.S. developments, including the GENIUS Act and the White House digital assets report, provide a more supportive regulatory environment—potentially reducing execution risk and broadening institutional interest. Given my $7.26 fair-value, today’s $4 share price already represents roughly a 45% discount—well inside what I’d consider a “buy” zone. Rather than waiting for a further pullback, I’d view $3.90–$4.50 as an attractive accumulation range.

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