BitFuFu Spends 357 BTC on Prepaid Compute; Output Falls

BitFuFu’s July operating update filed with the SEC shows the company applied 357 BTC as advance payments for 330 days of future hashrate, reducing its reported Bitcoin balance to 1,314 BTC as of July 31. The reported balance excludes coins mined on behalf of cloud-mining customers.

Monthly production fell to 112 BTC in July from 125 BTC in June, with average daily output down to 3.6 BTC from 4.2 BTC. Total managed hashrate declined to 14.2 EH/s from 15.3 EH/s. Capacity provided by third-party suppliers and hosting customers contributed 10.6 EH/s, down from 11.8 EH/s, while self-owned hashrate rose slightly to 3.6 EH/s from 3.5 EH/s.

The filing indicates capacity secured in June and July is expected to return total managed hashrate to about 20 EH/s by mid-August. A separate June disclosure outlined a 5.3 EH/s supply agreement for 270 days beginning in August. The July filing describes an additional 330-day capacity block but does not state its EH/s contribution. Because the updates do not provide a clear EH/s breakdown across the two purchases, there is no precise public commissioning schedule for reaching the mid-August target.

The July filing does not disclose key commercial terms for the new capacity purchases: it omits the counterparty identity, the price paid or committed, energy costs, uptime guarantees and cancellation protections. The document also does not provide a full reconciliation linking self-mining additions, sales or transfers, client receipts and the advance payments. The absence of those details means the 357 BTC decline cannot be assumed to represent an open-market sale or the exact cost of the capacity arrangements.

The update shows 44 BTC of the company reserve pledged as of month end for loans and miner-procurement payables, down from 54 BTC in June; the filing does not explain the 10 BTC change or how the encumbrances are currently allocated. Earlier public disclosures noted management would decline third-party contracts that would pressure margins; the July update does not provide enough contractual detail to evaluate the new purchases against that standard.

If total managed hashrate reaches about 20 EH/s by mid-August, that outcome will match the company’s stated timetable. Subsequent operating and treasury disclosures will be required to report on production levels, contract economics and any further use of reserves.