BitFuFu, a cloud Bitcoin mining company, has acquired its first 80-megawatt (MW) facility in Ethiopia as the beginning of its infrastructure diversification.
Cloud Bitcoin miner BitFuFu has acquired its first brick-and-mortar mining facility. The company is referring to developing an 80-megawatt (MW) facility in Ethiopia as the beginning of its infrastructure diversification. The transaction’s value was not disclosed.
Singapore-based Nasdaq-listed By June 30, the company had 25 mining facilities, most of which were hosted by third parties and situated in the United States. Additional facilities are located in Indonesia and Portugal.
BitFuFu Establishes First Physical Bitcoin Mining Facility In Ethiopia
The company will boost its capacity from 522 MW to over 600 MW with the new facility, which it intends to upgrade. The deployment of Bitmain S21 application-specific integrated circuit (ASIC) miners will potentially add 4.6 exahashes per second (EH/s) to its mining capacity.
In the second quarter of 2024, the company’s under management amounted to 24.7 EH/s. CEO Leo Lu said in a statement:
“This acquisition is a critical milestone as we work to vertically integrate and transition towards a more diversified and resilient portfolio of Bitcoin mining sites.”
“We can capitalize on lower energy costs to reduce Bitcoin production expenses, expand our operational capacity, and enhance profitability” through the acquisition, he added.
Energy costs at the facility average below $0.04 per kilowatt-hour, which will reduce BitFuFu’s cost per Bitcoin. As of Q2 2024, BitFuFu’s mining expenses had increased by 168% yearly.
Achieving success in a diverse market
The fourth BiMiners ‘ Theing and the increasing energy prices significantly reduced Bitcoin miners‘ profits. A significant number of miners have considered the diversification of their computing operations by transitioning to high-performance computing and artificial intelligence.
The market turmoil has enabled miners with substantial cash reserves to increase their investment in the mining sector. BitFuFu was among the miners who capitalized on this approach, resulting in a nearly 70% year-over-year increase in Q2 revenue to $129.4 million.
Executives from the Chinese hardware manufacturer Bitmain, which made an initial investment in BitFuFu, established the company. Bitdeer is also a spinoff of Bitmain.
