Ethiopia’s Growing Role in Bitcoin Mining
Ethiopia is making its mark in the world of Bitcoin mining, with local operations now contributing 2.5% to the global hash rate. According to Kal Kassa, a local Bitcoin miner, this percentage is expected to more than double within a year, as reported by Ethiopian Electric Power (EEP).
Ethan Vera, co-founder and COO of Luxor Mining, supports these claims, stating that local operations in Ethiopia already consume 600 MW of power, a number that could rise to 1 gigawatt by the end of the year. This would represent as much as 7% of the global Bitcoin network’s hashrate.
With a 2.5% contribution to the global Bitcoin hash rate, Ethiopia would join the ranks of the top five Bitcoin mining nations, alongside the United States, China, and the Czech Republic.
Chinese Miners Flock to Ethiopia
Ethiopia’s emergence as a mining hub follows China’s ban on Bitcoin mining in 2021, which led many Chinese miners to seek new locations. Companies like Bitmain-backed BitFuFu have acquired large mining operations in Ethiopia, while Bitmain itself has supported infrastructure development in the region.
Another player, BIT Mining, recently entered the Ethiopian market by acquiring a 51 MW Bitcoin mine and 17,869 mining rigs for $14.3 million.
Ethiopia’s Appeal: Abundant Hydropower and Renewable Energy
Ethiopia’s appeal as a Bitcoin mining destination lies in its abundance of hydropower and surplus renewable energy. The government has actively positioned the country as a Bitcoin mining hub, with the state-owned EEP generating over $55 million in revenue from agreements with 25 Bitcoin mining companies in the past 10 months.
Boyd Cohen, a Bitcoin mining advocate, highlights the broader economic implications of this shift. He suggests that early-adopting Bitcoin countries like Ethiopia could become new economic leaders in the future, leading to a significant redistribution of wealth.
Ethiopia’s rise in the Bitcoin mining industry is a testament to its potential and the growing importance of renewable energy in the cryptocurrency sector. As the country continues to attract more miners and expand its operations, it is poised to make a lasting impact on the global Bitcoin network.
