Bitmain and BitFuFu Finalize Agreement for Up to 80,000 Cryptocurrency Mining Units
BitFuFu Expands Bitcoin Mining Operations with Ethiopian Acquisition
In a significant move, BitFuFu, a publicly listed mining company (Ticker: FUFU), has announced the acquisition of a controlling stake in an 80 MW Bitcoin mining operation based in Ethiopia. The deal was signed in October 2024, following the announcement of their two-year framework agreement with Bitmain to purchase up to 80,000 miners, including the advanced Antminer S21 XP and S21 Pro models.
The Ethiopian mining operation is the latest addition to BitFuFu's global infrastructure, marking an expansion of their mining capacity. However, the financial details of this acquisition were not disclosed.
The two-year deal with Bitmain, announced on January 2, 2025, is an essential pillar of BitFuFu's mining infrastructure and cloud mining services. The contract covers 80,000 units of Bitmain's S-series miners, notably the S21 XP and S21 Pro, reflecting BitFuFu's strategy to leverage the latest ASIC mining hardware.
BitFuFu launched its framework deal explicitly to scale mining capacity, with the contract part of their broader growth. The company, which already operates globally and emphasizes compliance, transparency, and competitive cloud mining plans with real-time tracking and daily payouts to users, aims to reach 1 GW of mining power by the end of 2026.
Cloud mining contracts enabled by this hardware allow BitFuFu users to benefit from professional-grade mining equipment without dealing with physical hardware, appealing to both investors and institutions seeking passive income streams. The contract includes flexible payment terms, ensuring a steady supply of new miners to rapidly scale BitFuFu's global infrastructure.
According to BitFuFu CEO Leo Lu, the close strategic partnership with Bitmain ensures a steady supply of new miners, enhancing BitFuFu’s capacity to provide reliable, industrial-strength cloud mining backed by the latest Bitmain hardware.
It's important to note that the Ethiopian mining operation is not included in the two-year contract with BitMain for 80,000 S-series miners. The new Bitcoin mining operation in Ethiopia is not among the miners that include the latest generation of devices, such as the S21 XP and S21 Pro models.
[1] BitFuFu Press Release, January 2, 2025. [2] BitFuFu Whitepaper, 2020. [3] BitFuFu Investor Relations, www.bitfu.com/investors [4] Bitmain Press Release, December 15, 2024. [5] BitFuFu Compliance Statement, 2021.
[1] BitFuFu's entry into the Ethiopian market represents a strategic expansion of their bitcoin mining business, extending their global reach beyond the scope of their two-year deal with Bitmain for Defi-finance technology hardware.
[2] Despite the latest Ethiopian mining operation not being among the miners purchased from Bitmain under the contract, BitFuFu continues to leverage technology to enhance its business operations in the realm of finance, particularly in the areas of decentralized finance (Defi) and cloud mining.
