Mining company BitFuFu faced a significant decline in bitcoin mining volumes in June. The firm mined only 125 BTC during the month, a 29.4% decrease compared to May. The main reason was a reduction in the total hash rate under the company's management — from 19.5 EH/s to 15.3 EH/s. This occurred after the expiration of several cloud mining contracts, temporarily weakening production metrics.
However, there is a positive aspect to this situation. BitFuFu is actively increasing its own hash rate, which reached a record 3.5 EH/s. This growth was made possible by deploying 1,200 new Antminer S21 XP ASIC miners. This indicates a strategic shift by the company toward expanding its own capacities, rather than solely leasing third-party resources.
Bitcoin reserves on BitFuFu's balance sheet decreased to 1,671 BTC. Part of the reserves was allocated to prepay for new capacities totaling 5.3 EH/s. This suggests that the company is making a long-term bet on expanding its own infrastructure, despite the temporary drop in mining output.
From my perspective, this strategy seems reasonable amid growing competition and increasing mining difficulty. Own capacities give BitFuFu more control over operational costs and allow for quicker responses to market changes. However, the short-term decline in mining output may raise questions among investors, especially if the company cannot quickly compensate for the losses from expired contracts.