BitFuFu Inc., a Nasdaq-listed Bitcoin mining operator, is reassessing its planned acquisition of an 80-megawatt mining facility in Ethiopia. The deal, announced in October 2024, has stalled due to a financial and operational dispute between the local target company and its regional electric power supplier. The acquisition was structured to secure a majority stake in the Ethiopian entity owning the 80MW site.
BitFuFu has disbursed $4.1 million in total cash payments to the sellers and deployed approximately 13,700 Bitmain Antminer S19-series machines to the facility. The deployed hardware generates a combined hashrate of roughly 1.57 EH/s, carrying a total net book value of $1.74 million as of late September 2026. However, the acquisition faces severe headwinds due to the dispute.
The local target company is involved in a contractual payment dispute with its Ethiopian power provider. On September 28, 2026, the supplier issued a formal ten-day notice demanding settlement of outstanding balances. The utility warned it would exercise security rights and seize collateralized assets upon expiration. BitFuFu noted that the disputed amounts remained unpaid at the time of its disclosure.
BitFuFu is not a direct party to the underlying power agreement, but management emphasized that the conflict poses a material risk to closing the transaction under its original terms. Key unmet conditions precedent include mandatory regulatory filings in Ethiopia, asset consolidation, and the absence of undisclosed liabilities.
BitFuFu is actively evaluating legal remedies under the acquisition agreement. Potential actions include terminating the contract, initiating arbitration proceedings against the sellers, pursuing full recovery of the $4.1 million cash consideration, and demanding the immediate return of its deployed hardware.
CEO Leo Lu sought to reassure investors, noting that power curtailments had already been factored into previous operational guidance and that the dispute will have a minimal incremental impact on total production. BitFuFu maintains sufficient resources to reallocate hardware if local operations require adjustment.
The BitFuFu impasse unfolds against a volatile chapter in Ethiopia’s engagement with Bitcoin mining. In 2022, the government legalized industrial crypto-mining while maintaining a strict prohibition on local cryptocurrency trading. The sector accounted for an estimated 2.25% of the global Bitcoin hash rate and generated roughly $220 million in utility revenue in 2025.
Key points
- BitFuFu's planned acquisition of an 80-megawatt mining facility in Ethiopia has stalled due to a power dispute.
- The dispute poses a material risk to closing the transaction under its original terms.
- BitFuFu is evaluating legal remedies, including terminating the contract and pursuing full recovery of the $4.1 million cash consideration.
