Economy
BitFuFu Evaluates Terminating $4.1M Ethiopian Bitcoin Mining Deal Amid Power Dispute
Capital Ethiopia · 2 hours ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
BitFuFu Inc. is reassessing its planned acquisition of an 80-megawatt mining facility in Ethiopia after the target company entered a severe power payment dispute with its utility provider.
- BitFuFu Inc. is reassessing its planned acquisition of an 80-megawatt mining facility in Ethiopia through its subsidiary Finfront Holding Company.
- The transaction, originally announced in October 2024, has stalled due to unmet conditions precedent such as mandatory regulatory filings and asset consolidation.
- BitFuFu has disbursed $4.1 million in total cash payments to the sellers.
- The company has deployed approximately 13,700 Bitmain Antminer S19-series machines generating roughly 1.57 EH/s, carrying a net book value of $1.74 million.
- The local target company faces a contractual payment dispute with its Ethiopian power provider.
- The power supplier issued a formal ten-day notice on September 28, 2026, demanding settlement of outstanding balances or it would seize collateralized assets.
- BitFuFu is evaluating legal remedies, including contract termination, arbitration, full cash recovery, and the return of its deployed hardware.
- Ethiopia legalized industrial crypto-mining in 2022 to monetize surplus hydroelectric capacity from the Grand Ethiopian Renaissance Dam.
- State utility Ethiopian Electric Power had signed power-purchase agreements with roughly 21 mining firms by 2025.
- A severe drought and El Niño conditions reduced reservoir inflows by 20%, forcing the utility to cut power deliveries to miners to 23% of contracted amounts by September 2026.
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