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BitFuFu Acquires 80MW Bitcoin Mining Site in Ethiopia

Published

3 weeks ago

October 22, 2024

BitFuFu, a cloud miner partnered with Bitmain, acquired an 80-megawatt Bitcoin mining facility in Ethiopia. This purchase is part of an overall strategy shift from BitFuFu, with more global presence and direct asset ownership.

The Grand Ethiopian Renaissance Dam (GERD) is Ethiopia’s most popular destination for miners, but BitFuFu has not confirmed the site will be here.

BitFuFu’s Ethiopian Strategy

BitFuFu, a Singapore-based cloud mining company partnered with Bitmain, announced in a press release the acquisition of an 80-megawatt Bitcoin mining facility in Ethiopia. Bitmain, an early investor in BitFuFu, has been significantly expanding its Bitcoin mining investments this year. According to the press release, BitFuFu is “Bitmain’s sole strategic partner in the cloud mining space.”

This facility will be a substantial expansion to BitFuFu’s mining capabilities. Before this, most of BitFuFu’s infrastructure was based in the United States and hosted by third-party providers. The new facility will boost BitFuFu’s capacity by 13%, aligning with the company’s shift from an “asset-light” strategy to owning a more diversified portfolio of mining assets.

“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. As we integrate this facility into our global infrastructure, we can capitalize on lower energy costs to reduce Bitcoin production expenses, expand our operational capacity, and enhance profitability,” said CEO/Chairman Leo Lu.

Ethiopia has emerged as a popular destination for Bitcoin miners in recent years, particularly attracting investment from Chinese firms following China’s 2021 mining ban. The key draw for these investments is the Grand Ethiopian Renaissance Dam (GERD), a vast hydroelectric facility that offers ample power supply, making it appealing for Bitcoin mining operations.

Ethiopia's Massive GERD Investment, Visualized — Ethiopia’s Massive GERD Investment, Visualized. Source: France24

Despite the Grand Ethiopian Renaissance Dam (GERD) being a growing hub for international mining in Ethiopia, BitFuFu has not confirmed that its new facility will be located there. Given Ethiopia’s limited electrical grid, GERD seems like the most viable option for large-scale mining operations. Additionally, with BitFuFu’s strong business ties to Chinese firm Bitmain, the connection to GERD appears likely, though the company has yet to officially disclose the location.

In any case, this major acquisition in Ethiopia will significantly boost BitFuFu’s global presence and strengthen its competitiveness in international markets. While the company’s press release did not reveal the price of the new facility, the purchase is positioned as the first step in a broader strategic expansion.

“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,” Lu stated.

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