BitFuFu might abandon its planned acquisition of an 80-megawatt Bitcoin mining site in Ethiopia.
The site operator’s payment dispute with its power supplier imperils $4.1 million already paid by the miner.
A power supplier’s 10-day notice put $4.1 million at risk
The Singapore miner, listed on Nasdaq as FUFU, outlined the problem in a Form 6-K filed October 13. Through its subsidiary Finfront Holding Company, BitFuFu agreed on October 22, 2024 to acquire a majority stake in the Ethiopian company that operates the site.
The deal never closed. The agreement has a number of unfulfilled conditions.
BitFuFu is now reviewing its “contractual rights and available remedies.” Options include terminating the agreement, arbitration against the sellers, clawing back payments and removing its hardware.
The miner has paid the sellers $4.1 million in cash and has installed around 13,700 Bitmain Antminer S19 machines at the facility. Those machines produce about 1.57 exahashes per second and had a net book value of $1.74 million as of Sept. 30.
BitFuFu is not party to the contract behind the conflict. The target company is, and it has not paid the disputed amounts to its Ethiopian power supplier.
The supplier moved on Sept. 28. It warned the target that it would seize collateralized equipment and assets if payment didn’t come within 10 days.
As of filing, the money had not been paid, BitFuFu said. The miner sees “a material risk” that the deal won’t close at current terms, or ever.
Chairman and CEO Leo Lu tried to limit the harm. The Ethiopian investment is “a limited portion of our overall asset base,” he said.
The facility has already been affected by local power curtailment, Lu said, with limited further impact expected on Bitcoin output. “We believe this event’s incremental impact on the Company will be minimal,” Lu said.
Cloud output sank about 20% to 69 BTC in September
BitFuFu mining output in September was 167 BTC, down 4% from 174 BTC in August. Daily production held at 5.6 BTC.
Self-mining increased from 88 BTC to 98 BTC. But cloud mining shed about 20% to 69 BTC from 86 BTC.
The managed hashrate declined to 19.4 exahashes per second from 20.6, and power capacity declined to 324 megawatts from 344. Bitcoin hoard climbed 15 coins to 1,388 BTC.
While CleanSpark’s production sank about 11% to 529 BTC, Canaan was flat at 44 BTC. CleanSpark also dropped monthly mining updates for quarterly reporting as it shifts focus to its data center business.
FUFU closed at $1.31 on Thursday, against $2.64 at the end of 2025.
BitFuFu reported $475.8 million in revenue for 2025, up 2.7%. It reported a net loss of $57.4 million.
Cryptopolitan reported that the result was dragged down by a $32.8 million fair-value loss on Bitcoin holdings. Cloud mining, where customers rent managed hashrate, accounted for 73.7% of revenue.
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