BitFuFu Shares Surge 13% After Securing 80,000 Miner Deal with Bitmain

BitFuFu, a Singapore-based cloud Bitcoin mining firm, has signed a major two-year agreement with mining hardware giant Bitmain to purchase up to 80,000 Bitcoin miners. The deal, announced on January 2, is set to significantly enhance BitFuFu's mining capabilities with the latest Bitmain S-series models, including the high-performance S21 XP and S21 Pro, which offer higher hashrates for greater mining efficiency.

As part of the agreement, the miners will be delivered in batches, with flexible payment terms, including the option for partial payments through BitFuFu shares. This strategic partnership with Bitmain, one of the largest and most influential players in the Bitcoin mining hardware industry, ensures that BitFuFu will have access to cutting-edge mining technology as it rapidly expands its global infrastructure.

Expanding Mining Operations

Leo Lu, Chairman and CEO of BitFuFu, emphasized the importance of this deal for the company’s growth. “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,” said Lu.

The newly acquired miners will be used to bolster both BitFuFu’s self-mining operations and its cloud-mining services, enabling the firm to offer more cost-effective and energy-efficient solutions to its growing customer base. This move is part of BitFuFu’s broader strategy to solidify its position in the competitive Bitcoin mining industry.

Growing Global Presence

BitFuFu, which was founded in 2021 with early investment from Bitmain, currently boasts a hosting capacity of 556 megawatts and 26.2 exahashes per second (EH/s) in hashrate under management. The company operates 17 mining farms across the globe, with a strong presence in the United States. Additionally, BitFuFu serves over 450,000 registered users, making it one of the prominent players in the cloud mining space.

In October 2024, BitFuFu further diversified its operations by acquiring its first physical mining facility in Ethiopia, with an 80-megawatt capacity. This acquisition is part of a broader strategy to expand its infrastructure and reduce reliance on third-party hosting services.

Bitmain's Strategic Expansion

For Bitmain, the partnership with BitFuFu comes amid its ongoing expansion into the U.S. market. In December 2024, the company announced that it had expanded its production line to the United States to improve supply chain efficiency. This move aims to provide faster response times and more efficient service to North American customers, especially in light of the growing trade tensions between the U.S. and China.

BitFuFu's Market Reaction

The announcement of the deal with Bitmain sent BitFuFu’s shares (FUFU) soaring by 13% on January 2, bringing the stock price to $5.60. The company’s market capitalization has seen significant growth in recent months, driven by its expanding mining operations and strategic partnerships.

As of now, BitFuFu holds 1,664 Bitcoin in its treasury, valued at approximately $161 million, based on current market prices. This Bitcoin reserve further strengthens the company’s position in the mining space and offers potential upside as the price of Bitcoin continues to rise.

Looking Ahead

With this new agreement, BitFuFu is well-positioned to continue its rapid expansion, enhancing its mining capabilities and solidifying its role in the cloud mining sector. The company’s collaboration with Bitmain not only provides access to the latest mining technology but also strengthens its strategic positioning as a key player in the global Bitcoin mining ecosystem.