BitFuFu's September Output Slips as Ethiopia Deal Risk Surfaces

BitFuFu produced 167 bitcoin in September, 4% fewer than in August, even as output from machines it operates for itself rose. The more important disclosure for shareholders was not the monthly production dip. A dispute with the power supplier at an 80-megawatt site in Ethiopia is now threatening an acquisition that has remained unfinished for nearly two years.

Production shifted toward self-mining

The company said self-mining produced 98 bitcoin, up from 88 in August, while cloud-mining output fell to 69 from 86. Daily production held at 5.6 bitcoin. Holdings increased by 15 bitcoin to 1,388, which implies BitFuFu sold or otherwise used about 152 bitcoin during the month rather than retaining all production.

Managed hashrate, the computing power BitFuFu controls directly or for customers, fell to 19.4 exahashes per second from 20.6. Self-owned hashrate remained 3.8 exahashes per second, but third-party and hosting capacity declined to 15.6 from 16.8. Power under management also fell to 324 megawatts from 344. Those figures show that stronger self-mining did not offset contraction in the broader managed platform.

The Ethiopia asset is the sharper risk

BitFuFu agreed in October 2024 to acquire a majority interest in the Ethiopian facility. It has paid $4.1 million, deployed about 13,700 Antminer S19 machines representing 1.57 exahashes per second, and reported a net book value of $1.74 million for the equipment. The transaction has not closed.

According to the company's September update, a target-company dispute with the local power supplier led to unpaid obligations and a threat to seize collateral. BitFuFu said it may terminate the deal, pursue arbitration or seek to recover its payments and equipment. Management also said curtailment at the site was already reflected in September's results and should have limited additional impact.

What the numbers say

The monthly production decline is manageable on its own because daily output was stable and self-mining improved. The mix matters, however. Cloud-mining output fell about 20% from August, and managed power contracted by roughly 6%, based on the reported figures.

Investors now need two separate answers: whether BitFuFu can rebuild third-party capacity, and whether it can recover value from Ethiopia without a long legal process. October production will show whether the operating decline stabilizes. A formal resolution of the acquisition dispute would remove a larger uncertainty than a one-month change in bitcoin mined.