BitFuFu acquires majority stake in Oklahoma Bitcoin mining data center, enhancing efficiency and reducing mining costs.
Quiver AI Summary
BitFuFu Inc. has announced the acquisition of a majority stake in a 51-megawatt Bitcoin mining data center in Oklahoma for $400,000 per MW, enhancing its operational scale and efficiency. This facility operates at a competitive electricity cost of about $0.03 per kWh, allowing the potential cash cost to mine one Bitcoin to be as low as $18,000, depending on the deployment of AntMiner S21 series miners. The center has achieved over 95% uptime since its launch in 2022 and includes infrastructure for further expansion as well as a plans to develop a repair center. This acquisition aligns with BitFuFu's 1GW Global Capacity Expansion Plan and reflects the company's commitment to operational excellence and enhancing its mining services, supported further by a framework agreement with BITMAIN for up to 80,000 S-series miners.
Potential Positives
- Acquisition of a majority ownership in a 51-megawatt operational Bitcoin mining data center strengthens BitFuFu's operational scale and efficiency.
- Competitive net electricity cost of approximately $0.03 per kWh at the new facility enhances profit margins.
- The average cash cost to mine one Bitcoin at the site as low as $18,000 supports cost-effective mining operations.
- Plans to deploy AntMiner S21 series miners, increasing total managed hashrate by over 3EH/s, are indicative of significant growth potential.
Potential Negatives
- The significant reliance on forward-looking statements may raise concerns about the company's ability to achieve its projected operational goals and performance, creating uncertainty for investors.
- The acquisition funded by cash and common stock could potentially strain BitFuFu's financial resources or dilute shareholder value amid the significant investment.
- The large commitment to purchase up to 80,000 miners suggests high upfront costs and ongoing operational challenges, which may impact financial stability if market conditions fluctuate.
FAQ
What is the recent acquisition by BitFuFu?
BitFuFu acquired a majority stake in a 51-megawatt Bitcoin mining data center in Oklahoma for $400,000 per MW.
How does the acquisition enhance BitFuFu's operational efficiency?
The acquisition allows BitFuFu to lower mining costs to approximately $18,000 per Bitcoin, leveraging competitive electricity rates.
What is the significance of Oklahoma for BitFuFu?
Oklahoma offers a crypto-friendly regulatory environment and low electricity costs, facilitating efficient Bitcoin mining operations.
What plans does BitFuFu have for expansion?
BitFuFu intends to deploy additional AntMiner S-series miners and expand its total managed hashrate by over 3EH/s.
Who can I contact for more information about BitFuFu?
For investor inquiries, contact Charley Brady at charley.b@bitfufu.com or general inquiries at ir@bitfufu.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FUFU Hedge Fund Activity
We have seen 4 institutional investors add shares of $FUFU stock to their portfolio, and 9 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MORGAN STANLEY removed 1,533,056 shares (-99.9%) from their portfolio in Q4 2024, for an estimated $7,588,627
- WELLINGTON MANAGEMENT GROUP LLP removed 27,137 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $134,328
- XTX TOPCO LTD removed 26,439 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $130,873
- EXCHANGE TRADED CONCEPTS, LLC removed 23,855 shares (-4.5%) from their portfolio in Q4 2024, for an estimated $118,082
- WINTON GROUP LTD added 16,757 shares (+inf%) to their portfolio in Q4 2024, for an estimated $82,947
- JANE STREET GROUP, LLC removed 16,153 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $79,957
- MIRAE ASSET GLOBAL ETFS HOLDINGS LTD. removed 14,098 shares (-20.1%) from their portfolio in Q4 2024, for an estimated $69,785
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Majority stake acquisition strengthens BitFuFu’s operational scale and efficiency with low-cost power and enhanced hosting capacity
Net electricity cost at this facility is very competitive at about $0.03 per kWh
With the deployment of AntMiner S21 series miners, the average cash cost to mine one Bitcoin at this site is as low as $18,000, excluding depreciation
SINGAPORE, Feb. 20, 2025 (GLOBE NEWSWIRE) -- BitFuFu Inc. (“BitFuFu” or the “Company”) (NASDAQ: FUFU), a global leader in Bitcoin mining and comprehensive mining services, today announced that it has signed a definitive agreement and acquired a majority ownership in a 51-megawatt (MW) operational Bitcoin mining data center in Oklahoma. The transaction, priced at $400,000 per MW, is funded with cash from BitFuFu’s balance sheet and common stock.
Strategic Benefits of the Acquisition
Located in Oklahoma, the acquired data center has been operational since 2022, utilizing air-cooled container-based infrastructure. The facility boasts a track record of over 95% uptime and operates with a highly competitive net electricity cost of approximately $0.03/kWh. This will enable BitFuFu to mine one Bitcoin at a cash cost as low as $18,000 at this site, assuming the deployment of AntMiner S21 XP, excluding depreciation of miners and facilities.
In addition to its high-performance mining capabilities, the site includes a fully integrated operations center which lays a good foundation to build a state-of-the-art repair center to enhance mining business and operational efficiency.
The facility benefits from cost-effective energy delivery and operates within the Southwest Power Pool (SPP) - a highly stable and regulated energy market. Oklahoma’s crypto-friendly regulatory environment further strengthens the site’s long-term advantages, with legislation such as the Oklahoma Commercial Digital Asset Mining Act of 2022 and the Energy Discrimination Elimination Act providing tax incentives for mining operations.
Scaling Hashrate & Hosting Services
BitFuFu plans to deploy AntMiner S21 series or higher efficiency version of miners at this site, which will increase its total managed hashrate scale by over 3EH/s. The site has sufficient land for further expansion, pending the completion of a transmission upgradation study by the utility company and SPP in mid-2025.
“We have made significant progress toward our 1GW Global Capacity Expansion Plan,” said Leo Lu, Chairman and CEO of BitFuFu. “This acquired data center in Oklahoma has built a highly efficient mining operation, and we are excited to welcome them into the BitFuFu family. It allows us to expand our self-mining operations, enhance hosting services, and strengthen our cloud mining platform.”
“Moreover, we executed a framework agreement to purchase from BITMAIN up to 80,000 S-series miners (including but not limited to the S21 XP and S21 Pro) in the fourth quarter of 2024, which will greatly support our strategic 1GW Global Capacity Expansion Plan and constantly improves the efficiency of our global hashrate network under management. We aim to continuously create value for our clients and shareholders-that philosophy drives our commitment to operational excellence and continued expansion.”
About BitFuFu Inc.
BitFuFu Inc. is a global leader in Bitcoin mining and comprehensive mining services, providing customers with one-stop solutions including cloud-mining. BitFuFu received early investment from BITMAIN, a world-leading digital asset mining hardware manufacturer, and remains BITMAIN’s strategic partner in the Bitcoin mining and mining services space.
BitFuFu is dedicated to fostering a secure, compliant, and transparent blockchain infrastructure, providing a variety of stable and intelligent digital asset mining solutions to a global customer base. Leveraging its expanding global mining facility network and strategic partnership with BITMAIN, BitFuFu enables institutional customers and digital asset enthusiasts to mine digital assets efficiently.
For more information, please visit
https://ir.bitfufu.com/
.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of BitFuFu’s management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause BitFuFu’s actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. All information provided in this press release is as of the date of this press release and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor inquiries, please contact:
Charley Brady
Vice President, Investor Relations
charley.b@bitfufu.com
For general inquiries, please contact:
BitFuFu Investor Relations
ir@bitfufu.com
BitFuFu Media Relations
pr@bitfufu.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
