Northland initiates BitFuFu stock with market perform rating

Northland initiated coverage on BitFuFu Inc. (NASDAQ:FUFU) with a Market Perform rating and a $5.50 price target on Wednesday. The stock currently trades at $3.24, having declined nearly 38% over the past six months. According to InvestingPro analysis, the company appears to be trading below its Fair Value.

The research firm described BitFuFu as a global Bitcoin mining company that offers end-to-end solutions, including cloud mining services that make Bitcoin mining more accessible to both institutional and retail customers. Financial data from InvestingPro reveals the company maintains a solid liquidity position with a current ratio of 3.03, though it operates with thin gross margins of about 10%.

Northland noted that BitFuFu’s cloud mining solutions help remove barriers typically associated with cryptocurrency mining, specifically high initial costs and technical complexity.

The firm highlighted that BitFuFu received early investment from Bitmain, a major player in the cryptocurrency mining hardware industry.

BitFuFu continues to maintain a strategic partnership with Bitmain specifically in the cloud mining segment, according to Northland’s research note.

In other recent news, BitFuFu Inc. reported a significant increase in Bitcoin production for May 2025, with a 91.4% rise to 400 BTC compared to the previous month. This growth in production is linked to the full contribution from additional hashrate acquired in late April. The company’s total hashrate under management increased by 20.5% to 34.1 EH/s, and power capacity expanded by 15.0% to 651 MW as of the end of May. BitFuFu’s strategic actions in April also contributed to a 37% rise in network hash rate, reaching 28.3 EH/s, thanks to new supplier agreements and power deals, including a significant agreement with Bitmain for 80,000 S21s.

H.C. Wainwright maintained its Buy rating for BitFuFu, citing the company’s impressive growth and strategic partnerships. Despite a decline in first-quarter revenues to $78.0 million from $99.2 million, BitFuFu’s self-owned hash capacity increased to 4.2 EH/s. The company also reported a proactive treasury management strategy, selling 178 BTC in May to cover operational expenses and enhance liquidity. BitFuFu’s Bitcoin holdings decreased to 1,709 BTC, a drop from the previous month, but the company remains committed to maintaining a substantial balance. The firm continues to expand its cloud mining services, with registered users reaching 615,559 by the end of May.

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