BitFuFu (NASDAQ:FUFU) Issues Quarterly Earnings Results, Misses Estimates By $0.23 EPS

BitFuFu (NASDAQ:FUFU) issued its quarterly earnings data on Friday. The company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.23), FiscalAI reports. The business had revenue of $72.66 million during the quarter, compared to analysts’ expectations of $93.35 million. BitFuFu had a negative return on equity of 13.32% and a negative net margin of 12.06%.

Here are the key takeaways from BitFuFu’s conference call:

• BitFuFu leaned further into cloud mining, which generated $57.5 million in revenue, up 7.1% year over year, and accounted for 79.1% of total revenue. Management said the segment remained the most durable part of the business, supported by an 85.7% net dollar retention rate.
• Self-mining revenue fell sharply to $11.4 million, down 35.2% from a year ago, as the company deliberately reduced self-mining exposure to preserve liquidity amid weak Bitcoin pricing and higher network difficulty.
• Fleet efficiency improved meaningfully to 17.7 joules per terahash from 23.2 a year ago, which management said should lower production costs and strengthen margins over time.
• First-quarter net loss widened to $35.0 million from $16.9 million a year earlier, with $35.6 million of the loss tied to fair value changes in Bitcoin holdings and related receivables/payables. Management said adjusted EBITDA would have been about positive $1.1 million excluding those mark-to-market impacts.
• Liquidity remained solid at $141.5 million in cash and digital assets, and the company said it reduced revolver borrowings from $50 million at quarter-end to $5 million after quarter end. BitFuFu also emphasized continued discipline on capital spending, Bitcoin sales, and debt usage.

BitFuFu Trading Down 2.0%

FUFU opened at $2.00 on Friday. BitFuFu has a 52 week low of $1.56 and a 52 week high of $5.38. The business has a fifty day simple moving average of $2.07 and a 200-day simple moving average of $2.53. The firm has a market cap of $333.22 million, a P/E ratio of -5.88 and a beta of 0.46. The company has a quick ratio of 3.29, a current ratio of 3.30 and a debt-to-equity ratio of 0.63.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Weiss Ratings lowered BitFuFu from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, May 4th. HC Wainwright lowered their price objective on BitFuFu from $7.00 to $4.00 and set a “buy” rating for the company in a research report on Monday, March 23rd. Wall Street Zen upgraded BitFuFu from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, Zacks Research lowered BitFuFu from a “hold” rating to a “strong sell” rating in a research report on Friday, May 22nd. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $5.38.

Institutional Trading of BitFuFu

Hedge funds have recently modified their holdings of the stock. Vident Advisory LLC boosted its holdings in BitFuFu by 17.3% in the fourth quarter. Vident Advisory LLC now owns 223,893 shares of the company’s stock valued at $591,000 after purchasing an additional 33,052 shares during the period. RPO LLC purchased a new position in BitFuFu in the fourth quarter valued at $61,000. Vontobel Holding Ltd. boosted its holdings in BitFuFu by 12.6% in the fourth quarter. Vontobel Holding Ltd. now owns 156,986 shares of the company’s stock valued at $413,000 after purchasing an additional 17,605 shares during the period. Renaissance Technologies LLC boosted its holdings in BitFuFu by 24.7% in the fourth quarter. Renaissance Technologies LLC now owns 54,000 shares of the company’s stock valued at $143,000 after purchasing an additional 10,700 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in BitFuFu in the second quarter valued at $529,000. 37.26% of the stock is currently owned by institutional investors and hedge funds.

About BitFuFu

BitFuFu Inc provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.