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BitFuFu, the cloud Bitcoin mining firm, has acquired its first physical mining facility in Ethiopia capable of generating 80MW of power. Previously operating online through 25 mining facilities run by third-party firms, the move enables BitFuFu to grow its power capacity to over 600MW. Using the dedicated Bitmain S21 Bitcoin miner, the addition should provide an extra 4.6 exahashes per second of mining ability. CEO Leo Lu said the acquisition is a significant progression towards a more varied and secure Bitcoin mining operation. Reduced energy costs at the new facility of less than $0.04 per kWh will aid profitability.

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BitFuFu, a cloud Bitcoin mining company, has bought its first physical mining facility. The new facility, located in Ethiopia, is capable of generating 80 megawatts (MW) of power. Buying a physical location like this is a key move for BitFuFu to diversify its resources, although the actual price of the deal hasn’t been shared.

Before this deal, BitFuFu, which is based in Singapore and listed on the Nasdaq, ran 25 mining facilities. These places were all looked after by third-party companies, and most of them were in the United States, with others in Portugal and Indonesia.

This move marks a big change for BitFuFu – from online into the real world. They’ll increase their power capacity from 522 MW to over 600 MW with this new facility, which will be getting some upgrades. BitFuFu plans to use a dedicated type of Bitcoin miner, called Bitmain S21, which will give them an added 4.6 exahashes per second (EH/s) of mining ability.

By the middle of 2024, BitFuFu looked after mining activities with a total capacity of 24.7 EH/s. Leo Lu, the CEO of BitFuFu, said in an announcement that the new purchase is a big step forwards towards having a more varied and secure group of Bitcoin mining sites. Through this deal, the company can take advantage of lower power costs to cut down Bitcoin production expenses and boost profits.

This is great news for BitFuFu’s finances since power costs at the new place are generally lower than $0.04 per kilowatt-hour. This will bring down BitFuFu’s expenses per Bitcoin. However, remember that BitFuFu’s mining costs had already increased massively by 168% from year to year by the second quarter of 2024.

Despite facing challenges with high energy prices and issues related to Bitcoin supply, many mining companies with a solid cash reserve, including BitFuFu, have thrived. BitFuFu, for example, used such a strategy to boost its second-quarter income by almost 70% compared to the previous year, reaching $129.4 million.

When BitFuFu was first established, executives of the Chinese tech company Bitmain were at the helm, and even made an early investment in the company. Today, Bitmain still plays the role of strategic partner to BitFuFu. Another spinoff of Bitmain that you might also know about is Bitdeer.

Source: Cointelegraph