FUFU · BitFuFu Inc.

This April 2026 operational update constitutes a HIGH materiality disclosure for investors because it reveals both near-term operational disruption and strategic recalibration in response to market conditions — not passive deterioration. Production fell 32% MoM to 145 BTC, with management explicitly attributing the decline to two controllable factors: a temporary but impactful power outage at the Ethiopia facility, and a deliberate decision to let certain third-party hashrate contracts expire rather than renew them at unfavorable economics given April’s Bitcoin price environment. Critically, self-owned hashrate held steady at 3.3 EH/s, confirming resilience in BitFuFu’s owned infrastructure and distinguishing it from peers reliant solely on volatile external procurement. The $59,000 average cash-based self-mining cost per BTC is disclosed as a key unit-economics benchmark — underscoring that profitability preservation, not hashrate growth, is the current priority. Further reinforcing financial discipline, Bitcoin holdings rose by 18 BTC to 1,812 BTC, directly contrasting with industry peers who sold or exited positions; management frames this as conviction-driven accumulation. The resumption of improved power conditions at Ethiopia as of May 2 signals resolution of the most acute operational headwind, and the forward-looking commentary — 'we are well-positioned to scale our managed hashrate as opportunities meet our return thresholds' — implies measured, economically gated expansion ahead. No forward guidance on production, hashrate, or costs is provided, but the emphasis on flexibility, balance sheet strength, and risk-reward timing sets clear expectations for capital allocation rigor.