BitFuFu expands with Oklahoma mining data center buy

SINGAPORE – BitFuFu Inc. (NASDAQ: FUFU), a prominent player in the Bitcoin mining and comprehensive mining services industry with a market capitalization of $795 million, has announced the acquisition of a majority stake in a 51-megawatt Bitcoin mining data center in Oklahoma. The deal, valued at $20.4 million, was completed with a combination of cash and common stock from BitFuFu’s reserves. According to InvestingPro data, the company has demonstrated strong revenue growth of 78% in the last twelve months, though analysts note it’s currently burning through cash rapidly.

The Oklahoma facility, operational since 2022, is known for its high efficiency, with over 95% uptime and an impressive net electricity cost of around $0.03 per kWh. This strategic acquisition allows BitFuFu to mine Bitcoin at an average cash cost of $18,000 per unit, excluding depreciation, by deploying AntMiner S21 series miners. The company maintains a healthy current ratio of 4.09, indicating strong short-term liquidity, though InvestingPro analysis reveals relatively weak gross profit margins of about 13%.

The data center’s location within the Southwest Power Pool (NASDAQ:POOL), a stable and regulated energy market, along with Oklahoma’s crypto-friendly legislation, provides BitFuFu with long-term operational benefits and potential tax incentives.

Looking ahead, BitFuFu aims to scale its total managed hashrate by over 3EH/s through the deployment of advanced miners at this site. The company also has plans to expand the facility, pending a transmission upgrade study by the utility company and SPP, expected in mid-2025.

Leo Lu, Chairman and CEO of BitFuFu, expressed enthusiasm about the acquisition, stating that it aligns with the company’s 1GW Global Capacity Expansion Plan and commitment to operational excellence and growth.

BitFuFu’s strategic partnership with BITMAIN, a leading mining hardware manufacturer, supports its expansion efforts. The company has entered into a framework agreement to purchase up to 80,000 S-series miners in the fourth quarter of 2024, further bolstering its expansion and efficiency goals.

The information in this article is based on a press release statement from BitFuFu Inc. and reflects the company’s current plans and expectations for its mining operations and growth strategy.

In other recent news, BitFuFu Inc. reported its January 2025 Bitcoin production results, revealing a production of 83 Bitcoins from self-mining, a 25% decrease from December 2024, and 200 Bitcoins for cloud-mining customers. BitFuFu also announced plans to expand its operations by procuring 2,000 new miners and acquiring a 51-megawatt mining facility in Oklahoma, which promises a low power cost of $0.03/kWh. The company aims to enhance its operational efficiency and expand its global power capacity to 1 gigawatt by 2026. In another development, BitFuFu launched a low-commission Bitcoin mining pool, offering competitive rates starting at 0.4%, with plans to expand its mining services to other digital currencies. BitFuFu’s strategic partner, BITMAIN, continues to support the company in its efforts to provide secure and transparent blockchain infrastructure. The company also introduced BitFuFuOS, a software service aimed at improving mining operations and potentially increasing earnings by up to 20%. Additionally, BitFuFu’s registered users have grown to 598,785, reflecting the company’s expanding customer base. These developments highlight BitFuFu’s ongoing efforts to strengthen its position in the Bitcoin mining industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.