Is Bitcoin's new all-time high (ATH) of $90,000 the right moment to secure a $100 million credit line? If you're a Bitcoin miner from Wall Street, the answer is definitely yes. This exact move was made by Nasdaq-listed digital asset mining company BitFuFu (NASDAQ: FUFU), which has secured additional financing from AntPool Technologies.
Wall Street Bitcoin Miner BitFuFu Lands $100M Credit Facility From Antpool
BitFuFu aims to expand operations and potentially pursue acquisitions while maintaining its Bitcoin holdings. It's hard to imagine a better moment for infrastructure investment than during this dynamic bull run of BTC, which gained over 10% in value on Monday and is testing new all-time highs just below $90,000 on Tuesday.
The two-year Master Loan Agreement will provide BitFuFu with access to capital at a 6.5% annual interest rate. The facility will be collateralized by the company's Bitcoin holdings at a 70% loan-to-value ratio, with Antpool Technologies serving as custodian for the secured assets.
The cloud mining provider, which maintains strategic ties with mining hardware giant Bitmain, plans to use the funds for general corporate purposes, including covering hosting fees and exploring merger and acquisition opportunities. The company has not yet drawn any funds from the newly established credit line.
Even before the announcement, FUFU shares surged over 18% on Monday, reaching $5.73, the highest since July 2024. This rise aligns with gains seen among other Wall Street Bitcoin miners, driven by Bitcoin's strengthening and the broader digital currency ecosystem. Notably, Dogecoin led the surge, testing $0.32 on Monday with a 152% increase, and by Tuesday, it had gained an additional 10 cents.
HIVE Digital Technologies Ltd (NASDAQ: HIVE) has already made a similar move and ordered 6,500 Avalon A1566 miners from Canaan, aiming to expand its Bitcoin mining capacity from 5.6 EH/s to 12.5 EH/s by Q3 2025. This $100 million investment is part of HIVE's strategy to establish a 100 MW hydroelectric-powered data center in Paraguay, leveraging the Itaipu Dam's renewable energy
BitFufu Expands to Ethiopia to Combat 170% Surge in Production Costs
The $100 million credit line is another move by BitFufu to fight the surging production costs of Bitcoins. Last month, the Wall Street Bitcoin miner revealed plans to acquire a majority stake in an 80-megawatt (MW) crypto mining facility in Ethiopia. This move aims to access East Africa’s cheaper energy resources as the BTC mining industry faces narrowing profit margins, exacerbated by a 170% increase in BitFuFu’s production costs over the past year, which slashed net profit by 75%.
With this acquisition, BitFuFu’s total hosting capacity will exceed 600 MW, with around 13% now directly owned and operated by the company. This marks a shift from its previous asset-light model, where third parties hosted its 522 MW capacity as of mid-2024. The firm also plans to implement technological upgrades to enhance the new facility’s energy efficiency and mining capabilities.
In Q2 2024, BitFuFu’s revenue rose by 70% year-over-year to $129 million, but net profits plummeted from $5.1 million to $1.3 million due to soaring costs. As reported, industry-wide miner revenue has declined, reaching $827.56 million, the lowest since September 2023, underlining growing pressures from rising mining difficulty and costs.
This article was written by Damian Chmiel at www.financemagnates.com.
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