In a move reflecting Bitfufu‘s ambitious growth goals, the cryptocurrency mining company entered into a two-year Master Loan Agreement (MLA) with Antpool Technologies. Under this arrangement, Bitfufu (Nasdaq: FUFU) said it gains potential access to $100 million in capital, which the company states will support general corporate purposes such as possible acquisitions and the upkeep of its bitcoin reserves.
FUFU on Nov. 12, 2024, via bitcoinminingstock.io
Bitfufu is essentially a cloud mining platform and digital asset mining service provider that was established in 2020. With cloud mining users purchase mining contracts to access mining power without owning or maintaining physical hardware. The firm has a strategic partnership with Bitmain, one of the leading cryptocurrency mining hardware manufacturers. This collaboration includes a 10-year global mining hosting agreement and access to mining equipment and infrastructure.
The MLA outlines an annual interest rate of 6.5%, with the loan backed by a portion of Bitfufu’s bitcoin holdings at a 70% loan-to-value ratio. Antpool will maintain custody of the collateralized bitcoin (BTC), effectively tying the financial interests of both entities to the stability and potential appreciation of these assets. Currently, Bitfufu has yet to draw from the available funds under this loan agreement, which remains inactive.
Bitfufu joined forces with Arisz Acquisition Corp., making its big debut as a publicly traded company on the Nasdaq on March 1, 2024. Now operating under the name Bitfufu Inc., it trades with the ticker symbol “FUFU” for its Class A ordinary shares. The company says it runs more than 17 mining farms worldwide, spanning multiple countries. Bitfufu also claims a hosting capacity of over 370 megawatts, supporting upwards of 130,000 application-specific integrated circuit (ASIC) miners across its facilities.
