In This Article:
Key Insights
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The considerable ownership by retail investors in BitFuFu indicates that they collectively have a greater say in management and business strategy
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The top 8 shareholders own 49% of the company
A look at the shareholders of BitFuFu Inc. (NASDAQ:FUFU) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While retail investors were the group that benefitted the most from last week’s US$735m market cap gain, insiders too had a 45% share in those profits.
In the chart below, we zoom in on the different ownership groups of BitFuFu.
See our latest analysis for BitFuFu
What Does The Lack Of Institutional Ownership Tell Us About BitFuFu?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of BitFuFu, for yourself, below.
Hedge funds don't have many shares in BitFuFu. Looking at our data, we can see that the largest shareholder is the CEO Leo Lu with 45% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.9% and 0.2% of the stock.
On studying our ownership data, we found that 8 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of BitFuFu
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.