BitFuFu expands with 80 MW Bitcoin mining facility in Ethiopia

BitFuFu, a cloud mining company backed by Bitmain, has acquired an 80-megawatt Bitcoin (CRYPTO:BTC) mining facility in Ethiopia. 

This acquisition marks a significant strategic shift for BitFuFu from its previous “asset-light” model to direct ownership of mining infrastructure, reinforcing its ambitions to strengthen its global footprint and enhance its operational capacity. 

The move into Ethiopia comes as the country gains traction as a promising destination for Bitcoin mining operations. 

Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) serves as a major hydroelectric facility, attracting international mining firms due to its ample and consistent power supply. 

Although BitFuFu has not confirmed that its new facility will be located at GERD, it remains a likely choice given the country’s limited electrical grid and GERD’s substantial energy capacity. 

“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,” said BitFuFu CEO and Chairman Leo Lu. 

He further explained that leveraging lower energy costs would enable the company to expand its operational capacity, reduce Bitcoin production expenses, and drive profitability. 

BitFuFu’s acquisition reflects a broader strategy to establish itself as a significant player in global digital asset mining. 

The company plans to continue its expansion through acquisitions and the development of additional facilities, aiming to innovate within the mining sector while delivering long-term value to shareholders. 

Bitmain, a key early investor in BitFuFu, has been intensifying its investments in Bitcoin mining operations this year. 

As BitFuFu’s sole strategic partner in the cloud mining space, Bitmain’s support is expected to be pivotal in facilitating the company’s growth.

At the time of writing, the Bitcoin price was $67,555.22.