BitFuFu Boosts Bitcoin Mining with Oklahoma Acquisition

Crypto mining firm BitFuFu has made a strategic acquisition, purchasing a 51-megawatt Bitcoin mining data center in Oklahoma. This move leverages the state's favorable regulatory environment and low-cost energy resources, enhancing BitFuFu's operational efficiency and aligning with Oklahoma's initiatives to attract cryptocurrency enterprises.

The transaction, valued at $400,000 per MW, was funded using BitFuFu's balance sheet cash and common stock. The operational data center, established in 2022, utilizes air-cooled container-based infrastructure for optimal efficiency and performance, with a historical uptime of over 95%. The facility benefits from a competitive electricity rate of $0.03/kWh, enabling BitFuFu to mine one Bitcoin for approximately $18,000, excluding miner and facility depreciation costs.

The site includes a fully integrated operations center, serving as a foundation for developing a repair hub that enhances mining efficiency. Located within the Southwest Power Pool (SPP), a well-regulated energy market, the facility benefits from Oklahoma's supportive policies for crypto mining operations, such as the Oklahoma Commercial Digital Asset Mining Act of 2022 and the Energy Discrimination Elimination Act.

To bolster its mining operations, BitFuFu intends to install AntMiner S21 series or higher-efficiency miners at the newly acquired site, increasing its managed hashrate by over 3 exahashes per second (EH/s). The site also has additional land available for future expansion, pending the completion of a transmission upgrade study by the utility company and SPP in mid-2025.

BitFuFu has signed a framework agreement with BITMAIN to purchase up to 80,000 S-series miners, including models such as the S21 XP and S21 Pro, in Q4 2024. This move is expected to enhance the efficiency of BitFuFu's global hashrate network, reinforcing its commitment to delivering value for clients and shareholders. With this acquisition, BitFuFu broadens its presence in the Bitcoin mining sector by tapping into cost-effective energy solutions and next-generation hardware.