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- BitFuFu acquires an 80-MW Bitcoin mining facility in Ethiopia, aiming to reduce operational costs and increase capacity.
- The Ethiopian facility will boost BitFuFu’s hosting capacity beyond 600 MW, enhancing its global mining infrastructure.
Supported by Bitmain, BitFu Fu is a well-known Bitcoin cloud mining company that has made a big impact in the crypto mining sector by acquiring a majority share in an 80-megawatt (MW) Bitcoin mining facility situated in Ethiopia.
With this acquisition, BitFu moves strategically from an asset-light approach—where it relied on outside hosting—to directly owning and running its mining equipment. One major benefit of the Ethiopian facility is that its energy prices—which are less than $0.04 per kilowatt-hour—are expected to significantly lower BitFuFu’s Bitcoin output costs.
Wall Street Bitcoin miner BitFuFu acquires facility in #Ethiopia, eyes cheaper energy
BitFuFu, a Wall Street-listed #Bitcoin mining company, has acquired an 80-megawatt mining facility in Ethiopia to counter rising production costs. The move seeks to capitalize on the lower… pic.twitter.com/1pNGKwhZHI
— Addis Standard (@addisstandard) October 23, 2024
Boosting Bitcoin Mining Capacity with Bitmain’s S21 Technology
This new facility will add up to 4.6 exahashes per second (EH/s) based on Bitmain’s innovative S21-series mining equipment, therefore augmenting BitFuFu’s total capacity. After this purchase, the company’s overall capacity for hosting will exceed 600 M, and BitFuFu will have roughly 13% of that direct ownership.
Leo Lu, the CEO of BitFuFu, said that this acquisition marks a turning point for the business since it will help it to take advantage of Ethiopia’s low energy prices and increase profitability.
The action coincides with a period of growing challenges for the Bitcoin mining sector, including rising mining difficulty and skyrocketing energy prices. BitFuFu’s net profit dropped 75% while its operating expenses rose by 170% over the past year.
Investing in Ethiopia not only helps BitFuFu diversify its infrastructure but also responds to the growing expenses in Ethiopia. Previously focused in the United States and other areas, the company’s mining activities will now gain from Ethiopia’s cheaper electricity, therefore offering a competitive advantage.
Furthermore, the new plant will generate job possibilities in Ethiopia, supporting BitFuFu’s worldwide aspirations and helping the local economy.
For Bitcoin miners, the difficulties are far from gone, though. Due mostly to low transaction fees and expensive running costs, CNF has reported that Bitcoin miners made just $816 million in September. The post-halving environment has become more taxing since rewards have dropped while mining difficulty has grown.
