Bitcoin (BTC-USD) miner BitFuFu (NASDAQ:FUFU) started trading on Friday after closing a special purpose acquisition company (SPAC) merger with Arisz Acquisition. The deal was fully approved by shareholders of both firms on Feb. 28.
The timing of BitFuFu’s merger is proving quite fortuitous. Indeed, the value of BTC and many other cryptos has been surging in recent weeks, also fueling big rallies in many crypto-related stocks. This trend seems to be continuing this morning, with FUFU stock soaring more than 130% as of this writing.
What to Know About BitFuFu as FUFU Stock Starts Trading
Investors should know more about BitFuFu as FUFU stock makes its standout trading debut this morning. Here are the highlights:
- Bitmain, which sells materials and equipment to facilitate crypto mining, was an early investor in the company.
- BitFuFu and Bitmain have also “established an exclusive strategic partnership” for cloud mining.
- BitFuFu reportedly generated $134 million of sales in the first six months of 2023. That’s compared to $198 million in all of 2022.
- The company reportedly has 131,000 miners as part of its infrastructure and a “total mining capacity of 15.2 EH/s across 17 facilities in multiple countries.”
- “BitFuFu’s listing […] marks a new chapter that will enable us to continue our rapid growth trajectory and expand our global footprint in the digital asset industry,” said CEO Leo Lu about the merger.
- According to Yahoo Finance, the current market capitalization of FUFU stock is $1.04 billion, its enterprise value is $1.1 billion, and its trailing price-to-earnings ratio is a huge 286 times. However, its price-to-sales ratio is a more reasonable (but still elevated) 4.15 times.
- Based in Singapore, BitFuFu launched in 2020. The company’s value has actually dropped over the last two years, as it had a pro forma enterprise value of roughly $1.5 billion when the merger deal was first announced.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
