- BitFuFu’s shares surged 13% following a two-year deal with Bitmain to purchase up to 80,000 high-performance Bitcoin miners, bolstering its global mining capacity and cloud services.
- The agreement highlights BitFuFu’s strategic expansion plans and deep partnership with Bitmain, positioning it as a key player in the Bitcoin mining industry.
Singapore-based cloud Bitcoin mining firm BitFuFu has seen its shares jump 13%, trading at $5.60 following a significant two-year agreement with mining hardware giant Bitmain. Announced on January 2, the deal includes the purchase of up to 80,000 state-of-the-art Bitcoin miners, underscoring BitFuFu’s ambitions to expand its global mining footprint.
The agreement grants BitFuFu access to Bitmain’s latest S-series miners, including the high-performance S21 XP and S21 Pro models. The payment terms are flexible, with an option for partial payment in BitFuFu shares, reflecting the strong strategic partnership between the two companies.
Leo Lu, chairman and CEO of BitFuFu, emphasized the significance of the deal, stating;
Our deep strategic partnership with Bitmain ensures a steady supply of the latest miners to rapidly expand our mining infrastructure globally, with a target of adding 1 gigawatt in capacity by the end of 2026.
Bolstering Mining Operations and Services
The newly acquired miners will serve both self-mining operations and BitFuFu’s cloud-mining services. The firm aims to provide cost-effective and energy-efficient solutions, leveraging Bitmain’s cutting-edge technology to enhance its offerings.
BitFuFu’s existing infrastructure includes a hosting capacity of 556 megawatts and a managed hashrate of 26.2 exahashes per second (EH/s). With 17 mining farms located globally—primarily in the United States—the company also boasts over 450,000 registered users. In October 2024, BitFuFu diversified its infrastructure by acquiring its first physical mining facility, an 80-megawatt site in Ethiopia.
Bitmain Expands Production to the U.S.
Bitmain, a leader in mining hardware manufacturing, has also made strides to strengthen its supply chain. In December, the Chinese firm announced the expansion of its production lines to the United States, aiming to offer faster services to North American customers amid escalating U.S.-China trade tensions.
“This strategic move aims to provide faster response times and more efficient services to North American customers,” Bitmain stated.
Strategic Partnership and Market Confidence
BitFuFu has been a strategic partner of Bitmain since receiving early investment from the mining hardware giant in 2021. This collaboration has positioned BitFuFu as a key player in the Bitcoin mining sector, with the latest deal further solidifying its market presence.
The Nasdaq-listed firm’s robust financial standing, which includes holding 1,664 BTC in its treasury (valued at approximately $161 million), has also boosted investor confidence.
BitFuFu’s recent agreement with Bitmain signals a pivotal moment in its growth trajectory. With plans to significantly expand its mining capacity by 2026 and capitalize on the latest technology, the company is poised to strengthen its position in the competitive Bitcoin mining industry. The 13% surge in its share price reflects market optimism about its future prospects, bolstered by a strong partnership with Bitmain and a forward-looking expansion strategy.
