BitFuFu (FUFU -5.04%) reported its second quarter 2025 earnings on August 15, 2025, reporting revenue of $115.4 million, up 47.9% quarter-over-quarter, net income was $47.1 million, and total managed mining capacity reached 36.2 exahashes per second. Cloud mining revenue comprised 81.7% of total revenue, and company cash, cash equivalents, and digital assets rose to $211.4 million as of June 30, 2025. The call featured meaningful updates on operational efficiency, strategic expansion, and the firm’s move toward vertical integration in power generation.
Cloud mining drives FUFU revenue growth and user expansion
Cloud mining revenue reached $94.3 million, cloud mining revenue increased 75.6% compared to the first quarter and saw a 22.3% year-over-year increase, making it by far the dominant revenue stream at 81.7% of total revenue. As of July 31, 2025, the number of registered cloud mining users exceeded 629,000, marking substantial platform adoption and customer diversification beyond proprietary mining.
"the rise in the Bitcoin price this quarter fueled strong demand for cloud mining, leveraging our scale, operational efficiency and trusted brand we secured significant computing capacity from multiple new providers to deploy into our cloud mining platform, enabling us to meet the growing market demand and strengthen our competitive position. This momentum continued into third quarter. As of July 31, our total mining capacity further increased to 38.6 exahashes per second. Our hosting capacity expanded to 752 megawatts, and the number of registered cloud mining users exceeded 629,000. These early third quarter figures demonstrate our ability to maintain growth beyond this quarter, and reflect our strong operational execution and market demand."
-- Leo Lu, Chairman and CEO
BitFuFu’s rapid growth in cloud mining capacity and user base, supported by multi-provider sourcing, underscores its recurring revenue potential.
BitFuFu targets vertical integration with self-generation strategy
The company’s shift toward self-generated mining capacity is highlighted by exploration of natural gas power generation in North America and Africa, aiming to decouple energy costs from market volatility. For example, management referenced AECO natural gas pricing and calculated electricity generation costs of less than $0.01 per kilowatt hour in Canada.
"the natural gas is converted to electricity and current exchange rates. This translates to a tax-inclusive electricity generation cost of less than $0.01 per kilowatt hour. Securing natural gas power generation capabilities could provide a long-term stable structural advantage in the unit cost of hash rate production. Looking ahead, BitFuFu aims to maintain industry-leading electricity costs by mastering the entire supply chain from fuel to electricity, relying more on clean energy and significantly reducing our reliance on the public grid and market electricity prices."
-- Leo Lu, Chairman and CEO
If successful, this vertical integration could secure supply chain control, structurally lower mining costs, and offer a sustainable moat as energy is the principal cost in large-scale digital asset mining.
Operational discipline boosts profitability and cost leadership
Energy savings at African sites lowered bearer electricity costs to as little as $0.0314 per kilowatt hour, with the cost to mine one Bitcoin using advanced S21 XP miners falling to $29,000, compared to the current spot price of $120,000. Firmware improvements and power curtailment participation sustained mining efficiency above 100% of rated hash rate, defying seasonal and market headwinds.
"This reduction in energy costs has significantly increased profitability in our proprietary mining operations. For example, with the recent price of Bitcoin around $120,000, the direct cost of mining 1 Bitcoin using the S21 XP mining machines deployed at our own mining farms is $29,000. This year, BitFuFu's owned mining farms in North America and Africa have performed exceptionally well. We deployed and optimized our BitFuFu OS overclocking technology, enabling mining machine chips to operate more efficiently at higher speeds, and unlocking greater performance from our fleet. In the second quarter of 2025, even as our mining farms participated in regional power to curtailment programs and operated below full load. Firmware enhancements increased the hash rate operating efficiency of our S21 series miners to 100.5%."
-- Leo Lu, Chairman and CEO
Cost leadership and technical improvements in mining efficiency have driven significant profitability gains in BitFuFu's proprietary mining operations.
Looking Ahead
BitFuFu management did not offer explicit third-quarter or full-year quantitative financial guidance but confirmed strategic priorities of expanding cloud mining, self-mining, and mining machine sales, while pursuing vertical energy integration. Further investments in low-cost energy supply and digital asset tokenization (RWA) were restated as ongoing initiatives. No concrete revenue or profit forecasts, hash rate targets, or capex guidance were provided in this call.
