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Nasdaq-listed cryptocurrency mining company BitFuFu Inc. (FUFU) has announced a significant expansion of its operations, entering into a two-year framework agreement with industry-leading hardware manufacturer Bitmain to acquire up to 80,000 S-series mining rigs.
The agreement allows BitFuFu to purchase miners in stages, providing flexibility to adapt to market conditions and optimize its operational needs. This phased approach enables the company to strategically allocate resources and manage cash flow effectively, the company said in an announcment on Friday.
Notably, the deal offers payment flexibility, allowing BitFuFu to utilize company shares as part of the purchase price and defer a portion of cash payments interest-free. This innovative financial structure enhances liquidity and supports the company's ambitious growth objectives.
"This strategic partnership with Bitmain ensures a consistent supply of the latest miners, enabling us to rapidly expand our global mining infrastructure with the goal of adding 1 gigawatt of capacity by the end of 2026," stated Leo Lu, chairman and CEO of BitFuFu.
"The new miners will be utilized to bolster both our self-mining operations and cloud-mining services, delivering highly cost-effective and energy-efficient solutions. With the flexibility to procure equipment in batches over the next two years based on operational demands, this agreement further reinforces our position as a leader in the industry," Lu added.
The acquisition of these high-performance miners, including models like the S21 XP and S21 Pro, marks a significant milestone for BitFuFu. It solidifies the company's position as a major player in the Bitcoin mining sector and underscores the increasing consolidation within the industry. By securing access to state-of-the-art hardware and optimizing its operations, BitFuFu aims to gain a competitive edge and enhance its profitability.
The announcement was met with enthusiasm by investors, driving a significant boost in BitFuFu's stock price, which ended 2024 at $4.95, and now sits 14.75% higher at $5.68.
