B.Riley initiates BitFuFu stock with Buy rating on cloud mining strength

Published 18/07/2025, 08:12
B.Riley initiates BitFuFu stock with Buy rating on cloud mining strength

Investing.com - B.Riley initiated coverage on BitFuFu Inc. (NASDAQ:FUFU) with a Buy rating and a $7.00 price target on Thursday, representing an 80% upside from the current price of $3.88. According to InvestingPro data, the stock has shown strong momentum with a nearly 5% gain over the past week.

The research firm highlighted BitFuFu’s position as a Bitcoin mining company that primarily provides cloud mining services to various customers, including large institutional clients, while also expanding its self-mining operations.

As of May 31, 2025, BitFuFu manages 34.1 EH/s of hashrate and 651 MW of power capacity, with 164 MW owned directly and the remainder operated through hosting agreements and joint ventures.

The company aims to secure 1 GW of owned power capacity by the end of 2026 to support its global mining expansion plans, according to the research note.

B.Riley cited BitFuFu’s leadership in cloud mining, diversified revenue model, strategic partnerships, and scalable platform as key factors supporting its positive outlook on the stock.

In other recent news, BitFuFu Inc. reported a notable decrease in first-quarter revenues to $78.0 million, down from $99.2 million in the previous quarter. This decline was largely due to the expiration of third-party hash contracts and temporary fleet relocations. Despite the revenue drop, the company saw an increase in self-owned hash capacity from 3.1Eh/s to 4.2Eh/s, following the deployment of new S21 machines. BitFuFu’s network hash rate reached 34.1Eh/s by the end of May, placing it among the top five publicly traded bitcoin miners.

Additionally, BitFuFu experienced a 91.4% rise in Bitcoin production in May, producing 400 BTC, attributed to increased hashrate from new equipment. The company also sold 178 BTC at an average price of $104,000, enhancing liquidity. Analyst firm H.C. Wainwright maintained a Buy rating on BitFuFu, with a $7.00 price target, citing the company’s strategic relationship with Bitmain and growth potential. Meanwhile, Northland initiated coverage of BitFuFu with a Market Perform rating and a $5.50 price target.

BitFuFu’s operational growth in April included a 37.4% increase in hashrate management to 28.3 EH/s and an 18.4% expansion in power capacity to 566 MW. The company plans to engage with the Bitcoin and investor communities at upcoming conferences, continuing its focus on expanding its cloud mining platform and infrastructure.

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