Singapore-based BitFuFu has gotten little notoriety since its public debut in March 2024.
But it probably should. With over 20 EH/s deployed, 600,000 cloud mining users, and an entrenched relationship with Bitmain, BitFuFu has an impressive mining operation by most metrics.
We sat down with Charlie Brady, Vice President of Investor Relations, to get a better profile of the mining giant. Below is an executive summary of the recent podcast.
Ethiopia
BitFuFu reports 80 MW of “Power Under Management.” That’s about 13% of the total megawatts (MW) deployed in the East Africa country for Bitcoin mining. The company initially moved machines from the U.S. to Ethiopia due to lower operational costs, claimed to be under $0.04 per kilowatt hour.
Why it matters: Cheap energy is worth its weight in Bitcoin. Plus, the Ethiopian government seems to like Bitcoin.
Watch: Bitcoin Mining in East Africa
Oklahoma
BitFuFu recently acquired a majority stake in a 51 MW mining facility, where its S21 XP deployment is nearing completion.
“We’re going to be around $0.03 a kilowatt hour–so very, very competitive cost. You know, our cost of mine there when we get everything energized is going to be, about $18,000 a bitcoin before the depreciation,” Brady said.
Why it matters: Oklahoma is becoming a hub for Bitcoin mining, with several mega-miners moving into the neighborhood. State legislators are fairly far along in securing a Bitcoin reserve, too.
Read: State-level Strategic Bitcoin Reserve proposals, explained
Power pipeline
BitFuFu is currently operating across five continents. The company has set a goal to secure 1 gigawatt (GW) of power capacity by 2026. It is actively evaluating 700 MW worth of potential projects to meet that target.
Why it matters: Frankly, not much. Power “in the pipeline” is not power under contract. We’ve often seen miners tout their energy origination conversations to investors when the reality is it’s nothing more than marketing language. Want to get us excited? Show investors low cost, reliable energy sources.
AI, HPC and Bitmain
Bitcoin mining remains the priority, despite Oklahoma hosting a growing number of traditional data centers.
“I don’t see us getting out of Bitcoin mining. That relationship with Bitmain is going to remain an important aspect of the company,” Brady said.
Why it matters: BitFuFu retains a strong relationship with Bitmain, a parent company of sorts. As Brady notes, BitFuFu has a framework agreement for 80,000 units plus a 300 MW hosting agreement with the ASIC manufacturing giant. Why enter HPC/AI when you can mine at a discount?
Bitmain has shown interest in ‘spinning off’ certain assets, such as with Cango’s purchase of ASIC contracts in North America. BitFuFu sits in a pretty place for future asset spin outs from Bitmain.
Read: Chinese car company Cango emerges as third largest public miner
Cloud Mining Growth
BitFuFu’s cloud mining business has seen rapid growth, with its user base increasing from 500,000 to 600,000 in just three months. The platform allows both retail and institutional clients to lease Bitcoin mining power, which accounts for 85% of its hashrate usage. U.S. customers are not allowed on the platform, Brady said.
Why it matters: Recurring revenue, often denominated in USD, is a precious commodity in the mining business.
Risk assets like mining stocks
Bitcoin mining stocks have struggled in recent months, with investor sentiment turning risk-averse. However, Brady remains optimistic about the sector’s long-term prospects.
Why it matters: To a degree, Brady gets to talk about his book here–he is VP of IR for the company after all. But we do think there is value in Bitcoin miners with strong energy portfolios, particularly one’s cozied up to Bitmain.
