One of the leaders in cloud mining is buying up their own Bitcoin operations in Ethiopia.
What’s happening:
- BitFuFu (NASDAQ: FUFU) has announced they will acquire 80% of a Bitcoin mining facility located in Ethiopia
Why it matters:
- This is the first time ever that BitFuFu has decided to pursue owning their own operations, as their existing business model is focused on an asset light approach in which they purchase Bitcoin mining hardware that is then hosted in facilities they don’t own and then sell cloud mining directly to customers
- The new Ethiopian Bitcoin mining facility also comes with access to very low cost power, which will likely accelerate BitFuFu’s ability to scale up their hardware infrastructure
By the numbers:
- BitFuFu manages 25 different Bitcoin mining operations globally which have a combined total of 522 megawatts of capacity
- Just under 400,000 users actively use BitFuFu for cloud mining
- Bitcoin mining hardware company Bitmain and popular Bitcoin mining pool Antpool previously invested $70M USD into BitFuFu to accelerate the scale up their cloud mining business
Going deeper:
- BitFuFu has become one of the world’s leaders in hosting and managing Bitcoin mining operations and then enabling seamless access for customers to be able to mine Bitcoin independently without the need to own or deploy their own hardware infrastructure
- Cloud mining has become increasingly popular with individuals as it has reliably made it possible to buy Bitcoin for slight discounts compared to purchasing Bitcoin directly in the spot markets
The intrigue:
- Bitcoin mining operations in foreign countries have been starting to reach enormous levels of scalability, with Bhutan recently becoming one of the largest holders of Bitcoin of any country in the world through a government backed Bitcoin mining facility
