TechFlow news, October 23 — According to Cryptonews, Nasdaq-listed Bitcoin mining company BitFuFu announced plans to acquire a majority stake in an 80-megawatt cryptocurrency mining facility in Ethiopia. This move aims to address rising operational costs and declining profit margins by leveraging low-cost energy resources in East Africa.
Over the past year, BitFuFu's operating expenses surged by 170%, leading to a 75% drop in net profit. The company stated that the Ethiopian facility benefits from average electricity costs below $0.04 per kilowatt-hour, which is expected to significantly reduce Bitcoin production costs. With the deployment of Bitmain’s latest S21 series miners, the acquisition is projected to add 4.6 EH/s of mining hash rate for BitFuFu.
The acquisition will increase BitFuFu’s total hosted capacity from 522 megawatts to over 600 megawatts, with approximately 13% directly owned and operated by the company. This marks a strategic shift from its previous light-asset model toward greater direct control. BitFuFu CEO Leo Lu emphasized that Ethiopia’s low energy costs will help lower the company’s overall Bitcoin production expenses.
