Ethiopia Archives

Ethiopia is rapidly positioning itself as a key player in the global Bitcoin mining landscape. Local crypto mining operations have already reached a significant milestone, consuming 600MW of electricity, and the country expects to expand capacity further by the end of this year. Ethiopia’s Bitcoin mining sector, currently utilizing 600MW of power, continues to grow. Ethan Vera, co-founder and COO of Luxor Mining, shared this in a thread on X, referencing data from Ethiopian Electric Power. The country has an installed generation capacity of 5,200MW, with the majority of it coming from hydropower. Ethiopia plans to add several hundred megawatts more this year, solidifying its place as a growing hub for Bitcoin miners. Mining operations in Ethiopia primarily rely on mid-range machines like Bitmain’s S19J Pro and Canaan’s A1346 models. These devices are more cost-effective and energy-efficient, particularly in regions with lower electricity costs. Vera explained, “Ethiopia is a great place to use this class of machine.” Additionally, while many mining farms have cooling systems in place, Ethiopia’s naturally cold climate minimizes the need for extensive cooling measures. Ethiopia’s Broader Digital Infrastructure Goals Ethiopia's larger plan to improve its digital infrastructure includes more measures than this spike in Bitcoin mining. Ethiopian Investment Holdings and Hong Kong-based West Data Group inked a preliminary agreement in February for Ethiopian Investment Holdings to spend $250 million in the development of digital infrastructure. The government has characterized initiatives such as this as essential to its high-performance computing plan, which includes mining Bitcoin, even though the specifics are still unknown. Ethiopia has grown in popularity as a mining destination after China banned cryptocurrency mining in 2021, especially when the government approved Bitcoin mining in 2022. Yet, despite the mining industry's explosive expansion, around half of Ethiopia's 120 million residents still do not have consistent access to electricity, underscoring the country's persistent energy problems.

Ethiopia

Ethiopia Powers Up Bitcoin Mining with 600MW Surge, Strengthens Industry Backing

Ethiopia Partners with Hong Kong Firm for $250 Million Data Project