BitFuFu Reviews Ethiopia Bitcoin Mining Deal as $4.1 Million Payment Dispute Threatens Acquisition
BitFuFu (NASDAQ: FUFU) is reconsidering its planned acquisition of a majority stake in an Ethiopian Bitcoin mining operation with 80 megawatts of capacity after a payment dispute between the target company and its electricity supplier threatened the transaction. The miner has already paid $4.1 million to the sellers, putting that amount at risk if the deal fails to close.
In a Form 6-K filed on October 13, BitFuFu said it was reviewing its contractual rights and potential remedies after the acquisition agreement remained incomplete. The company, through its subsidiary Finfront Holding Company, agreed on October 22, 2024, to acquire a majority interest in the Ethiopian company operating the facility. The transaction has not closed because several conditions remain unfulfilled.
BitFuFu is considering terminating the agreement, pursuing arbitration against the sellers, recovering payments already made and removing its mining equipment from the site. The company said there is a material risk that the acquisition will not be completed under the current terms or at all.
Power Supplier Dispute Puts Ethiopia Mining Assets at Risk
The dispute centers on unpaid amounts owed by the target company to its Ethiopian power supplier. BitFuFu is not a party to the underlying electricity agreement, and the target company had not paid the disputed sums as of the filing.
On September 28, the power supplier issued a 10-day notice warning that it would seize collateralized equipment and assets if the payment issue was not resolved within that period. BitFuFu said the outstanding amount remained unpaid when it filed its disclosure.
The company has installed approximately 13,700 Bitmain Antminer S19 machines at the facility. The equipment delivers about 1.57 exahashes per second and had a net book value of $1.74 million as of September 30. The dispute therefore threatens not only the planned acquisition but also the company's investment in equipment already deployed at the site.
BitFuFu Chairman and CEO Leo Lu sought to limit concerns about the potential impact on the wider business, describing the Ethiopian investment as a limited portion of the company's overall asset base.
Lu also said the facility had already experienced local power curtailment, with limited additional effects expected on Bitcoin production. “We believe this event’s incremental impact on the Company will be minimal,” he said.
BitFuFu September Bitcoin Production Declines 4%
BitFuFu produced 167 BTC in September, down 4% from 174 BTC in August, according to the company's monthly figures. Average daily production remained at 5.6 BTC.
Self-mining output increased to 98 BTC from 88 BTC in August. Cloud mining production, however, fell approximately 20%, dropping to 69 BTC from 86 BTC.
The company's managed hashrate declined to 19.4 exahashes per second from 20.6 exahashes per second, while power capacity decreased to 324 megawatts from 344 megawatts. BitFuFu's Bitcoin holdings increased by 15 BTC to 1,388 BTC.
FUFU Shares and Financial Results
BitFuFu shares closed at $1.31 on Thursday, compared with $2.64 at the end of 2025. The company reported revenue of $475.8 million for 2025, an increase of 2.7%, alongside a net loss of $57.4 million.
Cryptopolitan reported that the annual result was weighed down by a $32.8 million fair-value loss on Bitcoin holdings. Cloud mining, in which customers rent managed hashrate, accounted for 73.7% of BitFuFu's revenue.
The company is now evaluating its options over the Ethiopian transaction while the electricity payment dispute remains unresolved. The final outcome could determine whether BitFuFu completes the acquisition, seeks to recover its payments or removes its equipment from the facility.
source: cryptopolitan
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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