Mining company BitFuFu ended June with a production of just 125 BTC — a 29.4% decrease compared to the previous month. The drop in production is directly linked to a reduction in the company's total managed hashrate from 19.5 EH/s to 15.3 EH/s. The reason is the expiration of several cloud mining contracts that previously provided a significant portion of computing power.
However, behind this external decline lies a strategic shift. BitFuFu is actively increasing its own hashrate, which has reached a record 3.5 EH/s. This growth was made possible by deploying 1,200 of the latest Antminer S21 XP ASIC miners. This equipment is highly energy-efficient, which is critical given the current market conditions and competition among miners.
The company's bitcoin reserves on its balance sheet have decreased to 1,671 BTC. Part of the reserves was allocated to prepay for new capacity totaling 5.3 EH/s. This indicates that BitFuFu is making a long-term bet on developing its own infrastructure rather than cloud services, which are subject to volatility and contract termination risks.
My analysis: The 30% drop in production is a temporary phenomenon caused by a business model restructuring. The shift from cloud mining to proprietary equipment is the right move to enhance stability and control over operating expenses. If BitFuFu successfully brings the planned 5.3 EH/s online, the company will not only compensate for losses but also reach a new level of efficiency. However, the key risk remains the price of bitcoin — if it falls below the cost of production, even the most modern ASICs will not save profitability.