BitFuFu Expands Horizons with New Mining Facility in Ethiopia

BitFuFu, a cloud Bitcoin mining company, has made a significant move by acquiring its first physical mining facility, an 80-megawatt operation in Ethiopia.

Although the financial details of this deal remain undisclosed, it marks a pivotal step in diversifying the company’s infrastructure.

Previously reliant on third-party facilities—primarily based in the U.S., with some in Portugal and Indonesia—BitFuFu aims to increase its total mining capacity from 522 megawatts to over 600 megawatts.

The company plans to enhance the facility’s capabilities by deploying Bitmain S21 ASIC miners, which could boost its mining power by an additional 4.6 exahashes per second (EH/s). As of the second quarter of 2024, BitFuFu’s managed capacity stood at 24.7 EH/s.

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CEO Leo Lu emphasized the importance of this acquisition for the company’s strategy to achieve vertical integration and build a more resilient Bitcoin mining portfolio.

By capitalizing on the lower energy costs—averaging below $0.04 per kilowatt-hour—BitFuFu can reduce its Bitcoin production costs, thereby increasing profitability. The company reported a 168% year-on-year rise in mining expenses as of Q2 2024.

Alexander Zdravkov