BitFuFu Plans Majority Stake Acquisition In Ethiopian Crypto Mining Farm

According to BlockBeats, Nasdaq-listed Bitcoin mining company BitFuFu has announced plans to acquire a majority stake in an 80-megawatt cryptocurrency mining farm in Ethiopia. This move aims to leverage East Africa's low-cost energy to address rising operational costs and declining profit margins. Over the past year, BitFuFu's operational costs have surged by 170%, resulting in a 75% drop in net profit. The company noted that the average electricity cost at the Ethiopian mining farm is below $0.04 per kilowatt-hour, which is expected to significantly reduce Bitcoin production costs. With the deployment of Bitmain's latest S21 series mining machines, BitFuFu anticipates an additional 4.6 EH/s in mining capacity. The acquisition will increase BitFuFu's total hosting capacity from 522 megawatts to over 600 megawatts, with approximately 13% directly owned and operated by the company. This marks a shift from the company's previous asset-light strategy towards more direct control. BitFuFu CEO Leo Lu emphasized that Ethiopia's low energy costs will help reduce the company's overall Bitcoin production expenses.