Singapore’s BitFuFu Plans Bitcoin Mining Acquisition in Oklahoma to Expand in North America

BitFuFu, a Singapore-based cryptocurrency mining company backed by Bitmain, has unveiled plans to expand its operations in North America through the acquisition of a majority stake in a Bitcoin mining facility located in Oklahoma. In a press release on January 16, the company stated that it had signed a letter of intent for the acquisition, which is expected to close in the first half of 2025.

The facility, which is situated in a sparsely populated area, has a power capacity of 51 megawatts and uses air-cooled Bitcoin miners. It sources electricity from the grid at a remarkably low cost of 3 cents per kilowatt-hour, a crucial factor for the firm’s expansion plans. According to BitFuFu’s chairman and CEO, Leo Lu, this acquisition is seen as a key move to enhance the company’s global power capacity, especially in North America, which is a critical market for cryptocurrency mining.

Lu emphasized that the acquisition would provide BitFuFu with “long-term, low-cost, and reliable power,” which is essential for scaling operations and supporting the firm’s broader plans to reach a 1-gigawatt (GW) global power capacity. This acquisition aligns with the company’s ambition to expand its footprint in the global cryptocurrency mining industry.

Although the deal is still subject to final agreements, financial checks, and other conditions, BitFuFu expressed optimism about the transaction. As a result of the announcement, BitFuFu’s stock saw a modest increase of 0.39%, reaching $5.19 in pre-market trading.

The company, which went public on the Nasdaq in March 2024 under the ticker FUFU, has faced higher general and administrative expenses due to its public listing. In its latest earnings report, BitFuFu revealed a 111% increase in these expenses, mainly driven by a rise in legal and consulting fees, totaling $1.2 million. Despite these costs, the firm remains focused on its expansion strategy and is positioning itself for long-term growth in the North American market and beyond.