BitFuFu Signs Long-Term Lease for Two Mining Facilities with 33 MW Capacity in the U.S.

Rhea-AI Summary

BitFuFu (NASDAQ: FUFU) has signed 10-year exclusive lease agreements for two Bitcoin mining facilities in the U.S., with a combined capacity of 33 megawatts (MW). The facilities, with 22 MW and 11 MW capacity respectively, can potentially add 2EH/s of mining capacity with power costs averaging as low as $0.042 per kilowatt-hour. The agreements include options to acquire majority stakes in both facilities.

This move represents BitFuFu's strategic shift from an asset-light to a more diversified infrastructure management approach. The company aims to add 1 GW of capacity by the end of 2026, with over 110 MW now under company control. BitFuFu has already operated at these facilities for approximately one year, confirming their operational stability and cost-effectiveness.

Positive

• Secured long-term power access at competitive rates ($0.042/kWh)
• Option to acquire majority stake in both facilities
• Potential addition of 2EH/s mining capacity
• Already achieved 110 MW of controlled capacity
• 10-year lease terms provide operational stability

Negative

• Shift from asset-light strategy requires higher capital investment
• Increased operational costs and maintenance responsibilities
• Long-term lease commitments during market volatility

SINGAPORE, Dec. 11, 2024 (GLOBE NEWSWIRE) -- BitFuFu Inc., (“BitFuFu” or “the Company”) (NASDAQ: FUFU), a global leader in Bitcoin mining and comprehensive mining services, today announced it has entered into 10-year exclusive lease agreements for two Bitcoin mining facilities with a combined capacity of 33 megawatts (MW) in the U.S. The lease agreements grant BitFuFu the option to acquire a majority stake in both mining facilities.

The lease of both mining facilities marks the next step in BitFuFu’s transition from an asset-light strategy to one that manages a diverse and robust portfolio of Bitcoin mining infrastructure. BitFuFu has set a target of adding 1 GW of capacity by the end of 2026. With the addition of the two mining facilities, BitFuFu is rapidly executing on this target with over 110 MW now residing in sites owned or operated by the Company.

The two mining facilities, with hosting capacity of 22 MW and 11 MW, respectively, will provide BitFuFu with the potential to add 2EH/s of mining capacity (depending on miner fleet specification) and power costs averaging as low as US$0.042 per kilowatt-hour. The Company has been managing self-mining and cloud-mining operations at these facilities for approximately one year and was highly satisfied with the consistent uptime, cost-effectiveness, and operational stability.

Leo Lu, CEO and Chairman of BitFuFu, stated, “Given our long-term bullish outlook on Bitcoin, we have been focused on finding the optimal mix between a pure asset-light and asset heavy strategy. Acquiring and vertically integrating mining facilities globally is key to securing cost efficient and stable power sources for our operations.”

“After carefully assessing and running small-scale operations at both sites over the past year, we are pleased to sign these long-term lease agreements and begin building a long-term partnership. Looking ahead, we will continue to enhance our cost structure and long-term operational stability by acquiring established mining facilities or developing our own.”

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 and media inquiries, please contact: 

BitFuFu Investor Relations 

Charley Brady
Vice President, Investor Relations
ir@bitfufu.com

BitFuFu Media Relations

pr@bitfufu.com

FAQ

What is the combined capacity of BitFuFu's newly leased mining facilities?

The two Bitcoin mining facilities have a combined capacity of 33 megawatts (MW), with individual capacities of 22 MW and 11 MW.

What is BitFuFu's (FUFU) power cost at the new mining facilities?

The power costs at the new facilities average as low as US$0.042 per kilowatt-hour.

What is BitFuFu's capacity expansion target for 2026?

BitFuFu has set a target of adding 1 GW of capacity by the end of 2026.

How much mining capacity can FUFU add with the new facilities?

The two mining facilities have the potential to add 2EH/s of mining capacity, depending on miner fleet specification.

How long are BitFuFu's new mining facility lease agreements?

BitFuFu has signed 10-year exclusive lease agreements for the mining facilities.