Nasdaq-listed BitFuFu has secured a $100 million credit facility from AntPool Technologies as Bitcoin’s price soars to record highs nearing $90,000.
The funding aims to support the company's infrastructure expansion plans and support acquisition opportunities, while maintaining its Bitcoin holdings.
The deal includes two-year financing at 6.5% annual interest, secured by the company’s Bitcoin holdings at a 70% loan-to-value ratio.
BitFuFu also plans to use the funding to cover hosting costs and explore potential mergers and acquisitions.
In another move to combat a 170% rise in mining costs over the past year, the company has acquired an 80MW mining facility in Ethiopia to take advantage of lower power costs in East Africa.
This acquisition increased its total capacity to more than 600 megawatts, with it moving into direct management of some of its facilities.
Despite BitFuFu’s revenue rising 70% in Q2 2024, to $129 million, net profit fell 75% due to operational pressures and higher production costs.
This trend reflects the challenges facing the entire mining sector, with mining companies’ revenues falling to their lowest levels since September 2023, amid increasing mining difficulty and high operating costs.
These investment steps by “BitFuFu” come as part of a strategy to benefit from the recovery of Bitcoin prices, enhance operational efficiency, and prepare for future growth in the market.
