BitFuFu’s Cloud Mining Clients Paid $60k Per Bitcoin in Q2

The cloud mining customers of Bitmain-invested BitFuFu appear to be mining at a 38% gross loss based on the economics revealed in the latest financial report of the bitcoin cloud mining giant.

In its Q2 earnings report released on Tuesday, BitFuFu reported generating $77.1 million in cloud mining revenue by producing 1,272 BTC for customers subscribed to its cloud mining contracts.

This suggests that BitFuFu’s 395,056 self-reported retail cloud-mining users paid an average bitcoin production cost of $60,534 during a quarter when bitcoin’s average price hovered around $65,000.

This translates to a daily hashcost of $62.1/PH/s, which is 38% higher than bitcoin’s hashprice of $45/PH/s — a measure of the daily dollar revenue per unit of bitcoin hashrate.

Although BitFuFu did not specify the mining equipment models used for its cloud mining capacity in the report, its website primarily sells contracts linked to Bitmain’s Antminer S19XP, which has an efficiency of 22 J/TH.

A hashcost of $62.1/PH/s with a fleet efficiency of 22 J/TH implies that BitFuFu’s cloud mining customers are effectively paying an electricity cost of about $0.12 per kilowatt-hour (kWh).

Meanwhile, BitFuFu’s proprietary mining segment generated 780 BTC during Q2, at a direct cost of $51,887, indicating a hashcost of $53.7/PH/s.

As previously reported, BitFuFu’s proprietary and cloud mining operations rely on S19XPs leased from Bitmain and on sites facilitated by the mining equipment giant. According to the Q2 report, BitFuFu paid Bitmain $89 million for miner leasing and site expenses in the first half of 2024.