BitFuFu's Adjusted EBITDA Was Negative $18.4 Million. Its Digital-Asset Fair-Value Loss, Which the Measure Does Not Exclude, Was $18.8 Million.

by Henry Nakamura · August 18, 2026

Earnings Reporter, Earnings Dispatch

BitFuFu Inc., the Nasdaq-listed cloud-mining and self-mining operator, reported unaudited second-quarter results on Monday showing total revenues of $42.8 million against $115.4 million in the same quarter of 2025, a decline the company puts at 62.9%. The bottom line swung from net income of $47.1 million to a net loss of $20.5 million. Basic and diluted loss per share were both $(0.12), against basic earnings of $0.29 and diluted earnings of $0.28 a year earlier. All figures in the release are unaudited.

The company's headline non-GAAP measure, Adjusted EBITDA, came in at negative $18.4 million, against positive $60.7 million in the prior-year quarter. What makes that figure worth reading closely is not its size but its construction. The release states the company's own definition in full: "BitFuFu defines Adjusted EBITDA as (1) GAAP net profit/loss, plus (2) adjustments to add back interest expense/(income), income tax expense/(benefit), depreciation and amortization, and (3) adjustments for non-recurring items, if any." That definition does not promise to strip out movements in the value of the company's bitcoin, and the reconciliation does not strip them out. This is not a departure from a stated policy; it is what the stated policy says.

The reconciliation itself ties in both columns. Starting from net loss of $(20,542) thousand, BitFuFu adds an income tax benefit of $(2,103) thousand, net interest expense of $674 thousand, depreciation and amortization of $2,339 thousand, a credit loss provision for receivables of $165 thousand and share-based compensation of $1,067 thousand, arriving at $(18,400) thousand. The prior-year column runs the same way from $47,141 thousand to $60,685 thousand, with no credit loss provision and $175 thousand of share-based compensation. Both re-add exactly. Two of those add-backs — the credit loss provision and share-based compensation — are not named in the definition quoted above and can only sit under the "non-recurring items" clause, though share-based compensation appears in both periods.

What the reconciliation contains no line for is the fair value of digital assets, and that omission is consequential because the fair value lines are large. The condensed income statement carries two separate items inside operating expenses, and they are not the same quantity. Changes in fair value of digital assets — the mark on coin the company holds — was $(18,824) thousand. Changes in fair value of digital asset receivables or payables, a remeasurement of amounts owed to or by the company rather than of inventory it owns, was a positive $1,953 thousand. The first of those, on its own, is larger than the entire negative $18.4 million Adjusted EBITDA figure it is not deducted from.

The prior-year comparative column was read, and it runs the other way. In the second quarter of 2025 the same two lines printed $35,068 thousand and $8,340 thousand, both positive, inside an Adjusted EBITDA of $60,685 thousand. The treatment is consistent across both periods, so the measure is not being flexed to suit the quarter. It is a measure that rises with the coin price and falls with it, and last year it was doing the flattering. The composition differs, though: in 2025 the receivables-and-payables remeasurement was a fifth of the combined fair value swing, while this year it ran the opposite way to the inventory mark and partly offset it.

The same observation applies one line up. The release shows an operating loss of $21,911 thousand for the quarter, against operating income of $53,138 thousand a year earlier — and both figures are struck after the fair value lines. Removing both lines from each column on the same basis, which is our calculation and not a company-presented subtotal, leaves an operating result of negative $5,040 thousand this year against positive $9,730 thousand last year. The direction of travel is unchanged. The magnitude is a great deal smaller.

Below the fair value noise, the operating picture is a gross line that has gone negative. Total revenues of $42,760 thousand were set against total cost of revenues of $43,719 thousand, producing a gross loss of $959 thousand, compared with gross profit of $12,852 thousand in the prior-year quarter. Costs did fall — by 57.4% on the company's figures — but revenue fell faster, at 62.9%.

The cost of revenues table splits three ways: $18,268 thousand incurred to a related party, $23,112 thousand to third parties, and $2,339 thousand of depreciation and amortization. The related-party portion is roughly 42% of total cost of revenues this quarter, down from about 58% a year ago, when the equivalent line was $58,989 thousand of $102,543 thousand. The earnings release labels these amounts as related-party but does not name the counterparty or describe the relationship, so the terms on which more than two-fifths of the company's operating costs are incurred cannot be assessed from this document.

The balance sheet carries a larger version of the same exposure. Due from related parties stood at $68,856 thousand at June 30, against total assets of $258,340 thousand — about 27% of the asset base owed by parties the release does not identify. That receivable was $75,019 thousand at December 31, so it has come down, but it is still more than three times the company's $22,220 thousand of cash and cash equivalents. Concentration of this size in an unnamed counterparty is a risk in its own right: the release gives no maturity, no security and no counterparty credit information, and the company booked a $165 thousand credit loss provision for receivables during the quarter.

The operational disclosures explain where the revenue went. Total hashrate under management, a point-in-time figure, fell 57.7% to 15.3 EH/s at June 30, 2026 from 36.2 EH/s at June 30, 2025, and power capacity was 273 MW against 728 MW on the same dates. Cloud mining solutions, historically the bulk of the business, generated $24.9 million of revenue over the quarter, or 58.2% of the total, down from $94.3 million and 81.7%. Bitcoin produced by cloud-mining customers fell to 255 from 917.

A forward-looking marker of that business sits in current liabilities: contract liabilities, which for a prepaid cloud-mining model represent customer money received against hashrate not yet delivered, fell to $30,981 thousand at June 30 from $50,573 thousand at December 31. That is a roughly 39% decline over six months in the deferred balance the cloud segment draws down.

Self-mining is the piece management chose to emphasize. In the release, Leo Lu, Chief Executive Officer and Chairman of the Board, said: "Second-quarter results reflected one of the more challenging operating environments our industry has experienced recently, but they do not change our conviction in BitFuFu's long-term opportunity. We prioritized operational quality and discipline — proactively optimizing our hashrate mix and nearly tripling self-mining production during the period. At the same time, we continued to expand our turnkey hosting services as a growing source of diversified revenue, while deploying next-generation S21 XP miners and actively managing our fleet to maintain high efficiency and protect our unit economics amid market volatility. Importantly, the reduction in managed hashrate during the quarter was not a simple contraction; rather, it was part of a deliberate effort to improve the quality and economics of our capacity. We have secured additional hashrate that restored our total managed hashrate to approximately 20 EH/s by mid-August and provided a stronger foundation for the second half of the year."

The noun in that sentence is production, and the production table in the same release does not support the multiple. Self-mining output was 192 BTC for the quarter against 143 BTC in the second quarter of 2025 — the figure BitFuFu itself published a year ago — an increase of about 34%. The company's first-quarter release, published May 29, reported 151 BTC for the three months to March 31, which makes the sequential increase about 27%. Neither reading approaches a tripling. Self-mining revenue was $14.0 million, below the $14.8 million booked in the year-ago quarter, so more coin was mined for less money. The one self-mining figure that comes close to the CEO's multiple is its share of revenue, which went from 12.8% to 32.7% — about 2.6 times, and a ratio that rose partly because the denominator fell by nearly two-thirds. The release does not disclose hashrate allocated to self-mining separately, so the claim cannot be tied to a disclosed capacity figure either.

The treasury is being spent. BitFuFu held 1,671 BTC at June 30, 2026, which the release compares with 1,792 BTC a year earlier, at June 30, 2025, for a decline of 6.8%. The sequential move is of similar size but a different measurement: the company reported 1,794 BTC at March 31, 2026, so 123 coins left the treasury during the second quarter alone. The release states that the year-on-year reduction "reflects the Company's ongoing treasury management strategy, under which BTC was sold during the period to support operational needs and hashrate procurement activities" — the sale-to-buy-hashrate framing is the company's own, not ours.

The company's separate July operational update, published August 7, put holdings at 1,314 BTC as of July 31 — 357 fewer coins than the June 30 balance — alongside total managed hashrate of 14.2 EH/s and power capacity of 255 MW at the same date. Those July 31 figures come from a monthly operational release rather than the quarterly balance sheet, so they are a later vintage than the June 30 marks and are not part of the same statement.

The 20 EH/s figure in Lu's quote is not new, and its tense has changed. The August 7 monthly update already told shareholders the company had used "a portion of our Bitcoin holdings to secure additional future hashrate capacity scheduled to come online in August," and that this capacity, "combined with the capacity secured in June, is expected to restore our total managed hashrate to approximately 20 EH/s by mid-August." Ten days later the earnings release states the restoration in the past tense — hashrate that "restored" managed capacity to approximately 20 EH/s. No reported operational table carries the figure. The most recent disclosed monthly number, for July 31, was 14.2 EH/s. The next monthly production release is where 20 EH/s becomes checkable.

The per-share arithmetic ties. A net loss of $20,542 thousand over the 166,916,728 weighted average basic shares disclosed in the release works out to $(0.1231), which rounds to the printed $(0.12). The prior-year column ties as well: $47,141 thousand over 163,265,449 basic shares is $0.2888, printed as $0.29, and over 168,647,741 diluted shares is $0.2795, printed as $0.28. There is no gap between the numerator and the per-share figure in either column, and no share-class allocation subtotal separating net income from what accrues to ordinary shareholders.

Equity absorbed the year. Total shareholders' equity fell to $94,370 thousand at June 30 from $149,604 thousand at December 31, a decline of about $55.2 million that closely tracks the $55,493 thousand net loss reported for the six months. Against that, current liabilities of $52,834 thousand sit above cash of $22,220 thousand, leaving the company reliant on its digital asset holdings for near-term liquidity — the same holdings it says it has been selling. A long-term payable of $93,364 thousand, roughly the size of shareholders' equity and down $1,000 thousand from December 31, appears on the balance sheet without an accompanying footnote in the release.

One arithmetic coincidence in the six-month column is worth noting for scale: BitFuFu's total revenues for the first half of 2026 were $115,420 thousand, within $25 thousand of the $115,395 thousand the company booked in the second quarter of 2025 alone. Both are the same line, total revenues, on the same statement.

The earnings release contains no condensed cash flow statement, so operating cash generation for the quarter cannot be assessed from this document. Readers wanting that, along with the identity of the related party behind the $68.9 million receivable and the terms of the $93.4 million long-term payable, will need the company's interim report on Form 6-K. Nothing here is a recommendation to buy or sell the shares.