Bitcoin Miner BitFuFu to Acquire Rival Mining Facility in Ethiopia

Publicly traded Bitcoin mining firm BitFuFu has announced its plan to expand its tentacles from its headquarters in Singapore to Ethiopia. The move entails purchasing a majority stake in a competitor’s 80MW Bitcoin mining facility. The move underscores the firm’s interest in growing Bitcoin activity in Africa.

New Facility to Increase Mining Power

As of June 30, 2024, BitFuFu had a mining capacity of 522 MW, managed by third parties. With its soon-to-be-concluded acquisition deal, its mining capacity will surpass 600 MW, of which about 13% will be owned and operated at mining sites managed by the firm.

The press release further explained that the Bitcoin miner will increase its mining power by 4.6 EH/s using the latest Bitmain S21 miners. Since power costs are below $0.04 per kilowatt-hour, this deal should help the company mine Bitcoin at a lower price, making their operations more efficient and profitable.

Most of BitFuFu’s mining rigs are established in the United States. However, shifting towards Ethiopia will allow the firm to explore new terrains. The move could pave the way for more Bitcoin mining firms to expand their mining operations to the continent.

Commenting on the acquisition, Leo Lu, CEO and Chairman of BitFuFu, said:

“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. [. . .] Moving forward, we aim to strengthen our global position by acquiring or building additional facilities and drive further innovation in the digital asset mining sector while delivering long-term value to our shareholders.”

Other Firms Abandon Bitcoin Mining

Unlike BitFuFu, other rival firms are leaving their Bitcoin mining business to focus on other endeavors.

A recent report confirmed that European mining firm Northern Data has decided to divest its Bitcoin mining operation to focus on artificial intelligence (AI). Other similar companies have either gone bankrupt or shut down altogether. These acts were likely exacerbated by the Bitcoin halving event, which reduced the revenue miners receive for mining Bitcoin blocks.

On the bright side, leading Bitcoin miners like Marathon Digital and Bitfarms have continued operations.