Bitcoin mining company BitFuFu plans to acquire a majority stake in an 80 MW mining farm in Ethiopia, which can increase computing power by 4.6 EH/s

Nasdaq-listed Bitcoin mining company BitFuFu has announced plans to acquire a majority stake in an 80 MW cryptocurrency mining farm in Ethiopia in an effort to find cheaper energy in East Africa to combat rising operating costs and shrinking margins. The specific acquisition amount has not yet been disclosed. Over the past year, BitFuFu's operating costs have surged 170%, resulting in a 75% drop in net profit. Equipped with Bitmain's latest S21 series miners, the Ethiopian mine is expected to add 4.6 EH/s of computing power to BitFuFu, with an average electricity cost of less than $0.04 per kilowatt-hour, which is expected to reduce BitFuFu's Bitcoin production costs. With this acquisition, BitFuFu's total hosting capacity will exceed 600 MW from 522 MW, with about 13% currently directly owned and operated by the company. This marks a departure from its previous asset-light strategy, where third-party facilities hosted its business.