BitFuFu Inc. Secures Two-Year Deal to Buy 80,000 S-Series Bitcoin Miners From Bitmain

BitFuFu Inc. has secured a two-year deal to buy up to 80,000 high-performance S-series Bitcoin miners from Bitmain, a leading crypto hardware maker

BitFuFu Inc. (NASDAQ: BITF) has announced a two-year deal to acquire up to 80,000 S-series miners from Bitmain, a leading crypto hardware maker, enabling BitFuFu to expand its mining capacity and cloud services as it targets 1 GW of mining power by 2026.

The deal allows the mining firm to purchase batches of Bitmain’s S-series miners, such as the S21 XP and S21 Pro, over two years. These miners are known for their durability, high hash rate, and energy efficiency. The purchase order also allows BitFuFu to order in bulk based on market needs and infrastructure.

A portion of the purchase price could be paid in BitFuFu equity at the company's option. More importantly, payments are partly rescheduled with no interest for such a payment defeasance, providing for cash flow while building mining capacity.

The Bitcoin mining industry is undergoing rapid transformation. Leaders are focused on increasing hash rates, reducing energy consumption costs, and having the financial strength to support such growth.

Self-mining and cloud-mining services are a key focus for BitFuFu. The new miners will ensure a good supply chain as BitFuFu increases its hash rate for its cloud mining packages.

This deal clears complexities related to mining hardware and institutions that seek Bitcoin-mining exposure. With shared, high-efficiency ASIC miners.

The halving of Bitcoin in 2024 will reduce block rewards, putting pressure on miners to increase efficiency and reduce costs. Projections indicate that the network hash rate may reach 1 zettahash per second by 2027, which will increase competition.

By 2026, BitFuFu plans to reach a mining capacity of 1 GW. It’s pretty ambitious; in fact, the new deal it signed with Bitmain reflects this plan of having higher hash rates and more cost-effective mining solutions.

Access to 80,000 new mining machines will enhance self-mining and the company’s mining services like hosting, cloud mining, and miner sales. Phased orders in this partnership enable changes in the order based on market fluctuations, especially with Bitcoin’s price volatility.

The two-year agreement that BitFuFu signed with Bitmain reveals the goal of this company: increasing its mining power up to 1 GW by 2026. It is acquiring up to 80,000 S-series miners from Bitmain in order to solve the increasing network difficulty and block rewards.