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On Monday, H.C. Wainwright analyst Kevin Dede confirmed a Buy rating on BitFuFu Inc. (NASDAQ:FUFU) with a steady price target of $7.00, well above the current trading price of $3.63. Dede’s recent comments focus on the company’s impressive April bitcoin mining report, which indicated a significant increase in network hash rate. BitFuFu’s network hash soared to 28.3Eh/s, a 37% sequential rise, on the back of strategic equipment acquisitions and power deals. The stock has shown strong momentum, gaining over 8% in the past week.According to InvestingPro analysis, BitFuFu appears undervalued based on its Fair Value metrics and analyst consensus targets ranging up to $10.27. Discover comprehensive valuation analysis and 12 additional key insights about FUFU with an InvestingPro subscription.
The April surge in BitFuFu’s hash rate is attributed to new and existing supplier agreements, including a significant framework agreement with Bitmain for 80,000 S21s, signed in January. This deal alone could potentially increase the company’s hash rate by 16Eh/s. The analyst pointed to several recent power acquisitions that support BitFuFu’s hash target, such as the majority stake in a 51MW operation in Oklahoma in February, long-term agreements for 33MW across two U.S. sites in December, and an 80MW deal in Ethiopia in October. These moves align with BitFuFu’s goal to reach 650-800MW by the end of 2025. The company’s expansion strategy has contributed to impressive revenue growth of 63% in the last twelve months.
Despite the positive developments, Dede noted that H.C. Wainwright’s current estimates do not fully account for the hash rate that BitFuFu has projected, hinting at a potential future upward revision of their numbers following the company’s March quarter report, which is expected in the last week of May or early June.
BitFuFu’s business model, which includes both purchasing and leasing bitcoin mining rigs, allows for flexibility in managing hash rates from self-owned and third-party suppliers. The company’s proprietary Aladdin network management software plays a crucial role in optimizing mining operations, adjusting the allocation of hash rate between self-mining and cloud mining based on supply and demand.
Dede emphasized that BitFuFu’s recent execution, the jump in network hash, and a general bullish outlook on the cryptocurrency sector underpin the firm’s decision to maintain the Buy rating and $7 price target for BitFuFu stock. The company maintains a healthy financial position with a current ratio of 4.15, though its gross profit margin stands at 11.74%. With a market capitalization of $592 million and a P/E ratio of 11.82, investors eagerly await the company’s next earnings report, scheduled for May 13, 2025.For deeper insights into BitFuFu’s financial health and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, BitFuFu Inc. reported a significant increase in its financial and operational metrics for April 2025. The company’s total hashrate under management rose by 37.4% to 28.3 EH/s, while its power capacity expanded by 18.4% to 566 MW. This growth was driven by expanded supplier partnerships and increased hash power procurement. BitFuFu’s Bitcoin holdings also increased to 1,908 BTC, up by 61 BTC from March, primarily due to self-mining operations and customer payments. In March 2025, BitFuFu held 1,847 Bitcoins, marking an increase of 47 BTC from February.
H.C. Wainwright maintained a Buy rating for BitFuFu with a $7 price target, highlighting a 63.1% increase in FY24 revenue to $463.3 million. The surge in revenue was attributed to growth in cloud-mining solutions and self-mining revenue. BitFuFu’s Q4 2024 earnings also showed strong growth, with revenue reaching $99.2 million, exceeding analyst expectations. The company’s strategic partnership with Bitmain and the launch of BitFuFu OS were noted as significant developments. BitFuFu plans to engage with the Bitcoin community at upcoming conferences, reflecting its commitment to expanding its market presence.
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