Bitmain enters agreement with BitFuFu for potential supply of around 80,000 bitcoin miners
BitFuFu, a leading player in the cryptocurrency mining industry, is making significant strides in its global expansion. The company recently announced a partnership with Bitmain and the acquisition of an 80 MW Bitcoin mining operation in Ethiopia.
The partnership, announced on January 2, 2025, includes the purchase of up to 80,000 S-series miners from Bitmain. According to BitFuFu CEO Leo Lu, this agreement ensures a steady supply of new miners, but it does not mention the Ethiopian mining operation.
In October, BitFuFu signed a definitive agreement to acquire a controlling stake in the 80 MW Bitcoin mining operation in Ethiopia. This acquisition is a new venture for BitFuFu, marking its entry into the African continent.
The Ethiopian mining operation is not one of the latest generation models, such as the S21 XP and S21 Pro, but it is an addition to BitFuFu's existing mining power. The company aims to reach 1 GW of mining power by the end of 2026, but the Ethiopian operation is not part of this goal.
The partnership with Bitmain and the Ethiopian acquisition are part of BitFuFu's strategy to rapidly scale its global infrastructure. The company has been investing in its own power generation, miner upgrades, and vertical integration to control energy costs and security, essential for large-scale mining operations.
These strategic moves are paying off. BitFuFuPool, the company's mining pool, has a hosting capacity of 728 megawatts and surpasses 20 exahashes per second (EH/s) in hashrate, ranking it among the top global Bitcoin mining pools.
BitFuFuPool’s rapid growth reflects scalable infrastructure and increasing trust in their mining platform, integral to their vertically integrated mining ecosystem that includes cloud mining, miner hosting, hardware sales, and software.
The company reported strong financial results in Q2 2025, with revenue increasing 47.9% quarter-over-quarter to $115.4 million, driven by rising demand for cloud mining and operational efficiency.
Following the announcement of the Bitmain partnership and Ethiopian acquisition, BitFuFu's shares rose by 13.13%. The company's strategic investments, operational scale, and financial performance likely contribute positively to investor confidence.
The chairman, Leo Lu, has highlighted a roadmap for vertical integration and blockchain-based asset offerings, which could further enhance market prospects.
In conclusion, BitFuFu's strategic investments, operational scale, and financial performance are driving its global expansion. The company is making significant strides in scaling its mining infrastructure, improving operational efficiency, and growing its cloud mining demand. The partnership with Bitmain and the Ethiopian acquisition are key components of this strategy.
- Despite the new Ethiopian Bitcoin mining operation not being one of the latest generation models, BitFuFu's strategic acquisition is a significant step towards their goal of reaching 1 GW of mining power by the end of 2026, showcasing their commitment to scalable technology in the finance and business sector.
- The partnership with Bitmain and the acquisition of the 80 MW Bitcoin mining operation in Ethiopia are integral parts of BitFuFu's strategy to advance their technology-driven business in finance and the global economy, as seen by the recent surge in their share price following the announcements.
