A Bitcoin miner can produce more coins and still earn less money from them. BitFuFu Inc. (NASDAQ: FUFU) raised the hashrate (the computing power directed at mining) it committed to self-mining by 47% in the second quarter and mined 192 Bitcoin, a 34% increase year over year, yet total revenue fell 62.9% to $42.8 million. A $20.5 million net loss replaced a $47.1 million profit from a year earlier, and shares closed 11% lower at $1.29 on August 17.
Where the revenue went
The company's largest business, Cloud Mining Solutions, drove most of the damage. Cloud mining is a contract arrangement: customers pay for access to a company's computing hardware and collect the Bitcoin it produces, without owning or running the machines themselves. That segment's revenue fell 73.6% to $24.9 million. BitFuFu attributed the fall to lower selling prices as Bitcoin weakened and customer order volumes declined. Net dollar retention came in at 24.1%, meaning recurring cloud-mining revenue this quarter equaled roughly a quarter of what those same customers spent in the second quarter of 2025. Equipment sales also fell to zero from $5.2 million in the prior year.
What self-mining could not offset
Self-mining stepped up but could not absorb the shortfall. Revenue from that segment slipped to $14.0 million from $14.8 million despite the production gain. The average Bitcoin price fell 27.5% to $71,600 during the quarter, and network difficulty (the measure of total computing competition across the Bitcoin network) cut daily Bitcoin earned per unit of computing power by 9.7%.
Cost of revenue reached $43.7 million, exceeding total revenue on its own. A $16.9 million net fair-value loss on digital assets and related receivables pulled adjusted EBITDA (a non-GAAP measure the company defines to exclude certain items) to negative $18.4 million. Total managed hashrate was also 57.7% below year-earlier levels as of June 30, and power capacity fell to 273 megawatts from 728 megawatts.
BitFuFu deployed next-generation S21 XP miners after the quarter ended and said total managed hashrate had recovered to approximately 20 exahashes per second by mid-August, up from 15.3 exahashes per second at June 30. Hosting and other revenue grew to $3.9 million from $1.1 million a year earlier. Whether the expanded self-mining footprint can produce revenue that outpaces a cost structure that already exceeded total quarterly revenue depends on Bitcoin prices and network difficulty, neither of which management controls. Seven hedge funds held positions in FUFU as of the end of March 2026, according to Insider Monkey's database, up from six three months earlier.