June was a month of paradoxes for mining giant BitFuFu. On one hand, the company mined only 125 BTC, which is 29.4% less than May's figures. On the other hand, its own hash rate reached a record 3.5 EH/s. Behind this seemingly contradictory movement lies a clear logic of business model restructuring.
Why did mining output drop?
The main reason is a sharp reduction in the total hash rate under the company's management, from 19.5 EH/s to 15.3 EH/s. This occurred after a number of cloud mining contracts expired. As a result, despite the growth of its own capacity, the total volume of computing resources available for mining decreased. Many clients likely did not renew agreements amid market volatility and declining mining profitability after the halving.
Own hash rate is growing
At the same time, BitFuFu is actively investing in its own equipment. In June, the company deployed 1,200 of the latest Antminer S21 XP ASIC miners, which allowed it to increase its own hash rate to a record 3.5 EH/s. This is a strategic move: the company is reducing its dependence on cloud contracts and betting on control over its own capacity.
Bitcoin reserves are shrinking
Bitcoin reserves on BitFuFu's balance sheet decreased to 1,671 BTC. Part of the reserves was allocated to prepay for new capacity totaling 5.3 EH/s. This indicates that the company is making a long-term bet on expansion, sacrificing current liquidity for future growth.
My analysis: BitFuFu is going through a painful but necessary transformation. The drop in mining output is a temporary phenomenon caused by an outflow of cloud mining clients. However, the increase in its own hash rate and prepayment for new capacity are signals to the market: the company is preparing for the next cycle. If Bitcoin recovers, BitFuFu will be in a winning position with record own capacity. But for now, investors should closely monitor the dynamics of reserves—further reductions could indicate liquidity problems.