Bitfufu opens first physical Bitcoin mining facility in Ethiopia

Cloud Bitcoin miner BitFuFu is expanding away from cloud mining and moving into a more resilient portfolio.
BitFuFu has announced that it has acquired its first offline mining facility in Ethiopia, with a capacity of 80 megawatts (MW). The transaction amount was not disclosed.
Nasdaq-listed Singapore-based BitFuFu had 25 mining facilities as of June 30, all of which were hosted by third parties.
Most of the plants are in the United States, with the rest in Portugal and Indonesia. The facility will increase the company's total capacity from 522 MW to 600 MW.
The company plans to expand to over 4 MW by introducing Bitmain's S21 application-specific integrated circuit (ASIC) mining machines.
The company plans to add an additional 1.6 EH/s of mining capacity. As of Q2 2024, BitFuFu's total mining capacity under management has reached 24.7 EH/s.
The acquisition marks an important milestone towards the vertical integration of Bitcoin mining sites and the move towards a more diversified and resilient portfolio.
"This acquisition will enable us to take advantage of low energy costs, reduce our bitcoin production costs, expand our operational capacity and improve profitability," CEO Leo Lu said in a statement.
"The facility's energy costs will average less than $0.04 per kilowatt-hour, which is expected to reduce BitFuFu's bitcoin production costs."
BitFuFu's mining costs increased 168% compared to last year as of the second quarter of 2024.