Cloud mining bitcoin platform, BitFuFu has entered into a two-year agreement with Bitmain, to acquire up to 80,000 S-series mining rigs.

The deal includes Bitmains latest S21 XP and S21 Pro models, which marks a major expansion for BitFuFus operations.

According to the original press release, the agreement allows BitFuFu to purchase miners in stages, offering flexibility to adjust to market conditions and operational needs.

The newly acquired hardware will support the Nasdaq-listed companys self-mining efforts and expand its service portfolio, which includes miner resale, cloud mining, and hosting services. In terms of the deals financial structure.

BitFuFu can pay part of the purchase price in its own shares and defer a portion of cash payments interest-free until after the equipment is delivered. This arrangement is designed to maintain liquidity while advancing the companys growth objectives.

Commenting on the development, Leo Lu, Chairman and CEO of BitFuFu, said that this strategic partnership with Bitmain will ensure a consistent supply of the latest miners to help the company grow its global mining operations and aim for an additional 1 GW of capacity by the close of 2026. The exec added,

The new miners will be utilized to bolster both our self-mining operations and cloud-mining services, delivering highly cost-effective and energy-efficient solutions. With the flexibility to procure equipment in batches over the next two years based on operational demands, this agreement further reinforces our position as a leader in the industry.

Shortly after the announcement, its stock saw a double-digit gain to $5.60 on January 2nd before undergoing a minor correction to $5.42.

The latest development comes months after BitFuFu acquired a rival 80-megawatt (MW) Bitcoin mining facility in Ethiopia.