BitFuFu Purchases 80MW Bitcoin Mining Facility in Ethiopia

BitFuFu, a cloud mining firm collaborating with Bitmain, has acquired an 80-megawatt Bitcoin mining facility in Ethiopia. This acquisition marks a strategic pivot for BitFuFu, aiming for a stronger global footprint and direct asset control.

The Grand Ethiopian Renaissance Dam (GERD) is the prime location for miners in Ethiopia, though BitFuFu has yet to confirm if this facility will be situated there.

BitFuFu’s Ethiopian Strategy

BitFuFu, a Singapore-based cloud mining firm partnered with Bitmain, announced in a press release that it has acquired an 80-megawatt Bitcoin mining facility in Ethiopia. Bitmain, an early backer of BitFuFu, has been aggressively expanding its Bitcoin mining investments this year. The press release states that BitFuFu is “Bitmain’s sole strategic partner in the cloud mining sector.”

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This facility represents a significant enhancement to BitFuFu’s mining capabilities. Previously, most of BitFuFu’s operations were based in the United States and utilized third-party hosting services. The new facility will increase BitFuFu’s capacity by 13%, reinforcing the company’s transition from an “asset-light” model to a more varied portfolio of owned mining assets.

“This acquisition is a milestone as we aim to integrate vertically and transition to a more diversified and resilient portfolio of Bitcoin mining sites. Integrating this facility into our global operation will allow us to leverage lower energy costs, reduce Bitcoin production expenses, and enhance profitability,” said CEO/Chairman Leo Lu.

In recent years, Ethiopia has become an attractive location for Bitcoin miners, especially following China’s 2021 mining ban, which has led to increased investments from Chinese companies. The main attraction for these investors is the Grand Ethiopian Renaissance Dam (GERD), a large hydroelectric project that provides a plentiful power supply, ideal for Bitcoin mining operations.

While the Grand Ethiopian Renaissance Dam (GERD) has become a key center for international mining in Ethiopia, BitFuFu has yet to confirm its facility’s location. With Ethiopia’s limited electrical grid, GERD appears to be the most viable option for large-scale mining operations. Given BitFuFu’s strong connections with Bitmain, the link to GERD seems plausible, but an official location announcement from the company is still pending.

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Regardless, this major acquisition in Ethiopia will considerably enhance BitFuFu’s global presence and increase its competitiveness in the international market. Although the purchase price of the facility was not disclosed in the press release, it is described as a crucial step in a broader strategic growth plan.

“Looking ahead, we intend to strengthen our global standing through the acquisition or construction of additional facilities and drive further innovation in the digital asset mining space, ensuring long-term value for our shareholders,” Lu added.