The Bitcoin Beacon
The Singapore-listed miner’s quarter shows how brutal post-halving economics have become — and how survivors are pivoting from selling hashpower to owning it.
SINGAPORE — BitFuFu, the Nasdaq-listed cloud-mining company backed by rig maker Bitmain, reported a quarter that reads like a warning for the whole sector. Second-quarter revenue fell 62.9% year over year to $42.8 million, from $115.4 million a year earlier. The company swung to a $20.5 million net loss from a $47.1 million profit, and its shares dropped about 17% on the news.
The damage was concentrated in cloud mining — BitFuFu’s core business of renting hashpower to customers — which collapsed 73.6% to $24.9 million, still 58.3% of revenue. The company blamed existing customers cutting order sizes as lower bitcoin prices and squeezed mining economics made contracts less attractive. Its cloud-mining net dollar retention, a gauge of how much repeat customers keep spending, fell to 24.1%. About $16.9 million of the net loss came from mark-to-market losses on the company’s own bitcoin holdings.
Mining revenue per unit of hashpower — hashprice — has been ground down by two forces at once. The April 2024 halving cut the block subsidy in half, and total network hashrate keeps climbing, near 894 exahash today, close to record highs. Each machine therefore earns a thinner slice of a fixed reward. When bitcoin’s price isn’t rising fast enough to offset both, margins compress. For a company that resells that thin margin to customers, the squeeze arrives twice.
A halved subsidy and record hashrate leave each machine a thinner slice — and BitFuFu resells slices.
The same report shows where survivors are heading. BitFuFu’s self-mining hashrate rose 9.3% sequentially to about 3.5 exahash, and hosting revenue — running other people’s machines — jumped 254% year over year. The strategy is to own more of the stack and rent out less of the volatile part. The transition burns cash: cash and digital assets fell to $119.5 million from $177.1 million at year-end.
Miners are cyclical, and the ones that add cheap power, efficient machines and hosting contracts tend to come out of downturns larger; a bad quarter at the bottom of a cycle is not a broken business. But the collective figure is what the network cares about. When mining economics turn this hostile, weaker operators switch machines off, hashrate growth stalls, and the security budget — the total revenue paid to the miners who defend the chain — comes under scrutiny. BitFuFu’s quarter is one data point in that larger question.
Why it matters: the miners who secure bitcoin are running on thinner margins than the price suggests — and how they survive the squeeze shapes the network everyone else relies on.
Q2 2026 figures — revenue $42.8M (−62.9%), net loss $20.5M, cloud mining $24.9M (−73.6%, 58.3% of revenue), 24.1% net dollar retention, $16.9M bitcoin fair-value loss, self-mining ~3.5 EH/s (+9.3% q/q), hosting +254% y/y, and $119.5M cash and digital assets — are from BitFuFu’s unaudited results (Aug. 17, 2026). Informational only — not financial advice.
Free. Five minutes. No hype.
Subscribe free