BitFuFu Acquires 51MW Operational Data Center in Oklahoma, Expanding U.S. Mining Footprint

Rhea-AI Summary

BitFuFu (NASDAQ: FUFU) has acquired a majority stake in a 51MW operational Bitcoin mining data center in Oklahoma for $400,000 per MW, funded through cash and common stock. The facility, operational since 2022, features air-cooled container infrastructure with over 95% uptime and competitive electricity costs of $0.03/kWh. This enables Bitcoin mining at a cash cost of approximately $18,000 per Bitcoin using AntMiner S21 XP miners.

The acquisition aligns with BitFuFu's 1GW Global Capacity Expansion Plan and will increase total managed hashrate by over 3EH/s. The Oklahoma facility benefits from the Southwest Power Pool's stable energy market and crypto-friendly state regulations. The site has expansion potential pending a transmission upgrade study in mid-2025. Additionally, BitFuFu has agreed to purchase up to 80,000 S-series miners from BITMAIN in Q4 2024.

Positive

• Low operational costs with $0.03/kWh electricity rate
• Competitive Bitcoin mining cost of $18,000 per coin
• High facility uptime of over 95%
• Potential hashrate increase of over 3EH/s
• Agreement to acquire up to 80,000 new miners from BITMAIN

Negative

• Stock dilution due to partial payment in common shares
• Expansion dependent on pending transmission upgrade study

Insights

Financial Analyst

This strategic acquisition marks a pivotal expansion in BitFuFu's U.S. operations, securing a 51MW facility at $20.4 million that delivers exceptional operational metrics. The facility's $0.03/kWh electricity cost positions it in the lowest quartile of global mining operations, providing important cost advantages in an industry where power expenses typically constitute 70-80% of operational costs.

The facility's economics are particularly compelling. With a projected Bitcoin mining cash cost of $18,000 using S21 XP miners, the operation maintains strong profitability margins even during market downturns. The 95% uptime track record suggests superior operational efficiency compared to industry standards of 85-90%.

The strategic value extends beyond mere mining operations. The integrated operations center's potential conversion into a repair facility represents vertical integration opportunities, potentially reducing maintenance costs by 20-30% compared to third-party services. Oklahoma's crypto-friendly regulatory framework, including tax incentives, enhances long-term operational stability and cost predictability.

The planned deployment of S21 series miners, adding 3+ EH/s to total hashrate, coupled with the framework agreement for up to 80,000 new miners from BITMAIN, positions BitFuFu for significant scale expansion. This vertical integration strategy - combining efficient mining operations, maintenance capabilities, and strategic miner procurement - creates multiple revenue streams while optimizing operational costs.

The acquisition's timing is particularly strategic ahead of the Bitcoin halving, as securing low-cost power infrastructure becomes important for maintaining profitability when mining rewards decrease. The facility's expansion potential, pending transmission upgrade studies, provides valuable optionality for future growth in a key U.S. market.

• 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

FAQ

What is the cost per MW for BitFuFu's Oklahoma data center acquisition?

BitFuFu acquired the Oklahoma data center at a price of $400,000 per MW.

What is the electricity cost at BitFuFu's new Oklahoma facility?

The net electricity cost at the Oklahoma facility is approximately $0.03 per kWh.

How much does it cost BitFuFu to mine one Bitcoin at the Oklahoma facility?

Using AntMiner S21 XP miners, the cash cost to mine one Bitcoin is approximately $18,000, excluding depreciation.

How many new miners is BitFuFu planning to purchase from BITMAIN?

BitFuFu has signed a framework agreement to purchase up to 80,000 S-series miners from BITMAIN in Q4 2024.

What is the expected hashrate increase from the Oklahoma facility acquisition?

The Oklahoma facility is expected to increase BitFuFu's total managed hashrate by over 3EH/s.