BitFuFu Secures Deal for 80,000 Bitcoin Miners with Bitmain
Bitcoin mining and cloud mining company BitFuFu has signed a two-year framework agreement with Bitmain to secure production capacity for up to 80,000 S-series Antminers.
The agreement, announced on Thursday, allows BitFuFu to place orders in batches over the next two years for a maximum of 80,000 units, including but not limited to the Antminer S21 XP and S21 Pro models. If BitFuFu fully exercises its purchase option for the S21 XP model, the additional hardware would contribute 21 EH/s of hashrate to its current 30 EH/s under management.
According to BitFuFu, the new mining machines will be utilized for self-mining operations and customer services, including miner resales, cloud mining, and hosting solutions.
The agreement also allows the company to pay part of the purchase price in company shares and defer a portion of cash payments interest-free after the delivery of the miners. At an estimated cost of $20/TH/s for the S21XP model, BitFuFu’s hardware investment could total about $420 million.
BitFuFu, originally incubated by Bitmain before being spun off for a SPAC listing in the United States, continues to maintain a close relationship with the ASIC manufacturing giant. Bitmain remains a key investor, offering critical hardware and infrastructure support that is central to BitFuFu’s operations.
During the third quarter, BitFuFu reported $90.3 million in revenue from its cloud mining and proprietary mining operations, with a cost of revenue totaling $83.2 million, excluding depreciation and amortization. Of that cost of revenue, $47.1 million—or approximately 56%—was paid to Bitmain.
Bitmain’s sale of mining hardware to its former in-house project comes at a time of increasing competition in the ASIC market, as some of Bitmain’s long-standing institutional clients shift to rival manufacturers.
