BitFuFu signs controversial 10-year lease for massive Bitcoin mining facilities

Based in Singapore, BitFuFu Inc. has announced its strategic move to sign exclusive 10-year lease agreements for two Bitcoin mining facilities located in the United States, with a total capacity of 33 megawatts (MW). This development marks a significant shift in the company’s strategy, as it transitions from an asset-light approach to one that emphasizes a comprehensive and robust portfolio of mining infrastructure. With a target to expand its capacity to 1 gigawatt (GW) by the end of 2026, BitFuFu is rapidly progressing towards this goal, now managing over 110 MW across its owned or operated sites. The newly leased facilities feature a hosting capacity of 22 MW and 11 MW, respectively. They are expected to provide an additional 2 exahashes per second (EH/s) of mining capacity, contingent on the specifications of the miner fleet employed. Furthermore, the power costs associated with these facilities are projected to average as low as $0.042 per kilowatt-hour, enhancing BitFuFu's cost-efficiency in operations. The company has been operating self-mining and cloud-mining operations at these two sites for approximately a year prior to signing the leases and has reported high satisfaction regarding their performance, including consistent uptime, stability, and cost-effectiveness. Leo Lu, the CEO and Chairman of BitFuFu, underscored the company’s optimistic outlook on Bitcoin, driving the focus toward securing stable and cost-efficient power sources via global integration of established mining facilities. The CEO expressed confidence post-operation assessments, stating their commitment to bettering the cost structure and operational reliability of their mining operations through partnerships and facility acquisitions. The significance of these agreements lies not just in the immediate capacity gains, but also in establishing a firmer foothold in the competitive landscape of Bitcoin mining, as the company strives for industry leadership by developing a substantial mining facility network. This strategic move signals BitFuFu’s response to the evolving dynamics within the cryptocurrency market and a dedication to substantial infrastructure growth, positioning itself favorably against competitors. The agreements represent more than just additional capacity; they reflect an approach aimed at achieving operational stability and profitability in the long run, highlighting the pivotal role of facility acquisitions in their overall strategy. As the cryptocurrency environment continues to evolve, companies like BitFuFu are keenly focused on enhancing their infrastructure capability to cope with rising demand and operational challenges, making this latest development a crucial step in their strategic efforts.