BitFuFu Signs Two-Year Framework Agreement with BITMAIN for 80,000 Miners
Rhea-AI Summary
BitFuFu (NASDAQ: FUFU) has signed a two-year framework agreement with BITMAIN to purchase up to 80,000 S-series miners, including S21 XP and S21 Pro models. The agreement allows BitFuFu to place orders in batches over two years, with miners being used for self-mining operations and customer services including resales, cloud mining, and hosting.
The deal includes flexible payment terms, allowing BitFuFu to pay partially in company shares and defer cash payments interest-free after miner delivery. This strategic partnership aims to support BitFuFu's expansion plans, targeting 1 GW in capacity addition by the end of 2026.
Positive
- Secured access to 80,000 latest-generation miners over two years
- Flexible payment terms including share-based payments and interest-free deferred cash payments
- Strategic partnership ensuring steady supply of mining equipment
- Clear expansion target of 1 GW capacity by end of 2026
Negative
- Potential shareholder dilution from share-based payments for miners
- Significant future cash payment obligations from large-scale miner purchase
News Market Reaction 1 Alert
On the day this news was published, FUFU gained 13.13%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SINGAPORE, Jan. 02, 2025 (GLOBE NEWSWIRE) -- BitFuFu Inc., (“BitFuFu” or “the Company”) (NASDAQ: FUFU), a global leader in Bitcoin mining and comprehensive mining services, today announced it has recently signed a two-year framework agreement with BITMAIN, a world-leading digital asset mining hardware manufacturer, to purchase from BITMAIN up to 80,000 S-series miners (including but not limited to the S21 XP and S21 Pro).
Under the terms of the framework agreement, BitFuFu has the flexibility to place orders in batches over a two-year period. The machines will be available for BitFuFu’s self-mining operations as well as to provide mining services to customers including, miner resales, cloud mining, and miner hosting services depending on market conditions and BitFuFu’s evolving miner capacity requirements.
This agreement includes payment terms, enabling BitFuFu to pay, at its option, part of the purchase price in shares of BitFuFu as well as the ability to defer part of cash payments interest-free after delivery of the miners. This financial flexibility ensures efficient management of cash flows and capital while supporting the company’s growth strategy.
“Our deep strategic partnership with BITMAIN ensures a steady supply of the latest miners to rapidly expand our mining infrastructure globally with a target of adding 1 GW in capacity by the end of 2026,” said Leo Lu, Chairman and CEO of BitFuFu. “The new miners will be utilized to bolster both our self-mining operations and cloud-mining services, delivering highly cost-effective and energy-efficient solutions. With the flexibility to procure equipment in batches over the next two years based on operational demands, this agreement further reinforces our position as a leader in the industry.”
About BitFuFu Inc.
BitFuFu Inc. is a global leader in Bitcoin mining and comprehensive mining services, providing customers with one-stop solutions including Cloud mining. BitFuFu received early investment from BITMAIN, a world-leading digital asset mining hardware manufacturer, and remains BITMAIN’s strategic partner in the Bitcoin mining and mining services space.
BitFuFu is dedicated to fostering a secure, compliant, and transparent blockchain infrastructure, providing a variety of stable and intelligent digital asset mining solutions to a global customer base. Leveraging its expanding global mining facility network and strategic partnership with BITMAIN, BitFuFu enables institutional customers and digital asset enthusiasts to mine digital assets efficiently.
For more information, please visit https://ir.bitfufu.com/.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of BitFuFu's management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause BitFuFu's actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. All information provided in this press release is as of the date of this press release and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
BitFuFu Investor Relations
Charley Brady
Vice President, Investor Relations
ir@bitfufu.com
BitFuFu Media Relations
pr@bitfufu.com
FAQ
How many miners will BitFuFu (FUFU) purchase from BITMAIN under the new agreement?
What is BitFuFu's (FUFU) capacity expansion target by 2026?
What are the payment terms in BitFuFu's (FUFU) agreement with BITMAIN?
How will BitFuFu (FUFU) utilize the newly purchased miners?
What is the duration of BitFuFu's (FUFU) framework agreement with BITMAIN?
