BitFuFu Stock Soars After Securing A Fleet Of 80,000 Miners From Bitmain: Retail Remains Unconvinced
Synopsis
BitFuFu plans to deploy these miners not only for its own mining ventures but also to enhance its mining services and cloud mining offerings to clients.
Bitcoin miner BitFuFu Inc. (FUFU) stock jumped by over 9% in mid-day trading on Thursday after the company announced it had signed a two-year framework agreement with Bitmain for a fleet of 80,000 Antminer S units.
BitFuFu’s deal with the leading manufacturer of cryptocurrency mining hardware includes S21 XP and S21 Pro models, which have higher hash rates than the base model.
Under the terms of the agreement, BitFufu has the flexibility to purchase the units in batches over a two-year period. This approach allows the company to scale its operations strategically while adapting to market conditions.
The agreement is another step in the company’s plan to transition from an asset-light strategy to a hybrid infrastructure approach.
BitFuFu plans to deploy these miners not only for its own mining ventures but also to enhance its mining services and cloud mining offerings to clients.
“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 BitFuFu CEO Leo Lu in a statement.
“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,” he added.
The news, however, failed to lift retail sentiment, which dipped to ‘bearish’ from ‘neutral’ on Stocktwits a day ago.
Last month, the company announced plans to expand its U.S. mining capacity under a 10-year lease agreement.
Company’s broader ambitions are to scale its mining capacity to 1 gigawatt (GW) by the end of 2026.
BitFuFu currently holds 1,664 Bitcoin in its treasury, valued at approximately $160 million.
Like other Bitcoin miners, BitFuFu’s stock did not see the same meteoric rise as Bitcoin in 2024, falling over 16%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Astera Labs Stock Dips On Northland Downgrade Over Valuation Concerns: Retail In The Doldrums
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.