Cloud mining service provider BitFuFu has entered into a definitive agreement to acquire a controlling stake in an 80 MW Bitcoin mining facility in Ethiopia.
According to the press release, the deal marks the company's transition from a strategy of managing small assets to building its own mining infrastructure.
As of June 30, 2024, BitFuFu had 522 MW of capacity hosted by third-party service providers.
The purchase of the African facility will increase the firm's total capacity to more than 600 MW, with 13% of that being located on a site owned and controlled by the company.
The new mining facility will allow BitFuFu to add to the 4.6 EH/s hashrate by deploying Bitmain's Antminer S21 series. With an average electricity price of less than $0.04 kWh, this is expected to reduce the cost of Bitcoin mining.
The company also noted that most of its capacities are located in the United States, so the deal will expand geographic diversification and strengthen competitive advantages.
Recall that in March, BitFuFu entered the Nasdaq through a reverse merger with SPAC Arisz Acquisition Corp.
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