BitFuFu shares surge by 13% following announcement of large miner purchase
Miner's stock is on the rise
The shares of BitFuFu, a Singapore-based cloud Bitcoin mining company, rose by 13% after announcing a major deal with mining hardware manufacturer Bitmain.
According to the company’s announcement on social media platform X, BitFuFu will acquire up to 80,000 ASIC miners, including the advanced S21 XP and S21 Pro models, as part of a two-year agreement with flexible payment terms, partially in BitFuFu shares.
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Leo Lu, CEO and Chairman of BitFuFu, emphasized that the partnership with Bitmain ensures a stable supply of cutting-edge equipment, enabling the company to rapidly scale its global mining operations. The new devices will support both proprietary mining operations and cloud mining services, with the goal of reaching a capacity of 1 gigawatt by the end of 2026.
About BitFuFu
BitFuFu, a strategic partner of Bitmain since 2021, manages 17 mining farms worldwide, primarily in the United States, with a hosting capacity of 556 megawatts and a hashrate of 26.2 EH/s. In October 2024, the company expanded its infrastructure by acquiring an 80-megawatt mining facility in Ethiopia.
Following the announcement of the deal, BitFuFu's shares, listed on Nasdaq, climbed to $5.60. The company currently holds 1,664 BTC in reserves, valued at approximately $161 million.
Meanwhile, Bitmain announced in December that it had expanded its production line to the United States to enhance supply chain efficiency amidst escalating trade tensions between the US and China.
In parallel, the cryptocurrency market shows signs of recovery. However, the bullish momentum faces challenges as Bitcoin whales continue to sell off significant volumes of BTC.
