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Investing.com - Roth/MKM has initiated coverage on BitFuFu Inc. (NASDAQ:FUFU) with a Buy rating and a $6.00 price target, citing the company’s differentiated Bitcoin mining business model. The stock, currently trading at $4.00, has shown strong momentum with a nearly 16% gain over the past week. Analyst targets range from $5.50 to $10.27, suggesting significant upside potential.
The research firm describes BitFuFu as a "software-driven, lower CapEx Bitcoin infrastructure platform" with operations spanning cloud mining, self-mining, and hosting services.
BitFuFu’s business model is supported by proprietary technology and exclusive partnerships, particularly with mining hardware manufacturer Bitmain, according to Roth/MKM.
The firm notes that BitFuFu offers "scalable and flexible exposure to Bitcoin hash rate with lower CapEx and strong margin potential primarily through cloud hosting."
Roth/MKM expects improved growth and visibility as BitFuFu scales toward its targets of 60 EH/s computing power and 1 gigawatt capacity by 2026-2027, with increasing operating leverage anticipated as the platform expands.
In other recent news, BitFuFu Inc. reported a notable 91.4% increase in Bitcoin production for May, reaching 400 BTC. The company’s total hashrate under management rose by 20.5% to 34.1 EH/s, with a total power capacity expansion of 15% to 651 MW by the end of May. These operational updates coincide with BitFuFu’s strategic moves to enhance liquidity, including the sale of 178 BTC at an average price of $104,000. Additionally, BitFuFu’s first-quarter earnings call revealed revenues of $78 million, a decline from the previous quarter’s $99.2 million, due to expiring hash contracts and fleet relocations. Despite this, BitFuFu’s self-owned hash capacity increased, and the company plans a significant deployment pipeline over the next 18-24 months. Analyst firms have shown varied ratings, with B.Riley initiating a Buy rating and a $7.00 price target, while Northland gave a Market Perform rating with a $5.50 price target. H.C. Wainwright maintained its Buy rating, emphasizing BitFuFu’s growth potential. These developments underscore the company’s ongoing efforts to strengthen its market position.
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