Cloud-based bitcoin mining company BitFuFu has acquired its first physical facility in Ethiopia, laying the foundation for infrastructure diversification.

New Facility and Its Potential

With the acquisition of an 80-megawatt facility in Ethiopia, BitFuFu boosts its capacity from 522 MW to over 600 MW. The facility will be upgraded with the deployment of Bitmain S21 ASIC miners, potentially adding 4.6 EH/s to its mining power.

Saving on Energy Costs

Energy costs at the facility average below $0.04 per kilowatt-hour, which will reduce the cost per Bitcoin production. As of Q2 2024, BitFuFu's mining expenses had increased by 168% year-on-year.

Market Challenges and Opportunities

Surging energy prices and the fourth Bitcoin halving have significantly cut into miners' profits. However, companies with healthy cash reserves, like BitFuFu, have managed to capitalize on the situation, with Q2 revenue increasing by nearly 70% year-on-year to $129.4 million.

The acquisition of a physical facility in Ethiopia presents new opportunities for BitFuFu to optimize costs and enhance production capacity amidst challenging market conditions.