Singapore-based cloud mining firm BitFuFu announced a major two-year agreement with mining hardware manufacturer Bitmain, sending its shares up by 13% to $5.60 on January 2, according to Google Finance. The deal enables BitFuFu to acquire up to 80,000 Bitcoin miners, including Bitmain’s latest high-performance S21 XP and S21 Pro models.
Strategic Expansion with Bitmain
BitFuFu’s CEO and Chairman, Leo Lu, highlighted the partnership’s significance:
“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.”
The agreement includes flexible payment options, allowing BitFuFu to make partial payments in company shares. The new miners will support both self-mining operations and cloud-mining services, providing energy-efficient and cost-effective solutions.
BitFuFu’s Growing Mining Footprint
With an existing hosting capacity of 556 megawatts and 26.2 EH/s (exahashes per second) in managed hashrate, BitFuFu has positioned itself as a significant player in the Bitcoin mining space. The firm operates 17 mining farms globally, predominantly in the United States, and serves more than 450,000 registered users.
In October 2024, BitFuFu acquired its first physical mining facility — an 80-megawatt operation in Ethiopia — to diversify its infrastructure. This expansion aligns with its long-term goal of scaling its mining capacity to 1 gigawatt by 2026.
Bitmain’s Strategic Shift
Bitmain, the Chinese mining hardware giant, has been expanding its production line to the United States. In a December announcement, Bitmain revealed the move was designed to enhance supply chain efficiency and improve services for North American clients, especially amid escalating trade tensions between the U.S. and China.
Market Reaction
The announcement of the Bitmain deal triggered a 13% surge in BitFuFu’s stock, reflecting investor optimism about the firm’s ability to scale operations and strengthen its market position.
The company also holds 1,664 BTC in its treasury, worth approximately $161 million at current market prices, showcasing its commitment to leveraging Bitcoin as a core asset.
Looking Ahead
BitFuFu’s partnership with Bitmain and its ambitious expansion plans signal a positive outlook for its growth in the Bitcoin mining sector. With its focus on global infrastructure expansion, energy-efficient solutions, and strong market positioning, BitFuFu is poised to capitalize on the growing demand for Bitcoin mining services.
Stay tuned as the firm progresses toward its 2026 target of 1 gigawatt capacity, reshaping the landscape of cloud and self-mining operations.
