BitFuFu has signed a two-year framework agreement with BITMAIN, a leading manufacturer of digital asset mining hardware. The agreement includes advanced models such as the S21 XP and S21 Pro, and outlines BitFuFu’s intention to purchase up to 80,000 S-series Bitcoin mining machines.
These miners will play a crucial role in supporting BitFuFu’s self-operated mining business, as well as its customer-centric services like mining resales, cloud mining, and hosting.
BitFuFu’s innovative financial strategy is driving its ambitious expansion goals. The unique financial structure of this agreement allows BitFuFu to have flexibility in payment terms. Cash payments can be deferred interest-free until the machines are delivered, and part of the purchase money can be paid in company shares.
This financial structure reflects the company’s desire to effectively manage its cash flow while pursuing ambitious development strategies. Over the next two years, BitFuFu aims to significantly increase its operational presence using this relationship.
In addition to expanding its mining capacity worldwide, BitFuFu has also made strategic moves to enter the African market. The company recently acquired a majority stake in an 80-megawatt Ethiopian Bitcoin mining project.
Equipped with the latest Bitmain S21 series miners, this facility is expected to add 4.6 exahashes per second (EH/s) of capacity. The Ethiopian facility aims to reduce the cost of each Bitcoin mined significantly, as electricity expenses average less than $0.04 per kilowatt-hour, ensuring better profitability.
Previously, CNF reported that BitFuFu’s acquisition in Ethiopia would increase its hosting capacity to over 600 megawatts, further solidifying its worldwide infrastructure.