BitFuFu has made a significant move by acquiring an 80-megawatt Bitcoin mining facility in Ethiopia, marking the start of its infrastructure diversification.

This acquisition is a crucial expansion of BitFuFu's Bitcoin mining operations, allowing the company to leverage Ethiopia's low energy costs, averaging $0.04 per kilowatt-hour.

This strategic shift represents a departure from BitFuFu's previous asset-light strategy, moving towards direct ownership and management of mining infrastructure.

The acquisition enhances BitFuFu's competitive position in the global market and expands its operational footprint, as the company seeks to strengthen its presence internationally.

Overall, this acquisition is seen as a first step in BitFuFu's broader strategic expansion, aiming to enhance its competitiveness in international markets.

The new facility is expected to create job opportunities in the local Ethiopian community, contributing to economic development.

With this addition, BitFuFu's mining capacity will increase by approximately 4.6 EH/s, bringing the total under management to over 600 MW after upgrades.

The facility's upgrades will include the deployment of the latest Bitmain S21 ASIC miners, further enhancing mining efficiency.

CEO Leo Lu emphasized that this acquisition is a critical milestone aimed at vertically integrating and diversifying their Bitcoin mining operations.

By capitalizing on these lower energy costs, BitFuFu aims to improve its profitability and plans to implement technological upgrades for greater efficiency at the new site.

Ethiopia has emerged as a popular destination for Bitcoin miners, largely due to the Grand Ethiopian Renaissance Dam, which provides ample hydroelectric power.

This move comes at a time when BitFuFu's production costs had surged 168% year-on-year by Q2 2024, making the acquisition even more strategic.