Ethiopia Emerging as a Major Player in Bitcoin Mining Industry
Ethiopia is quickly making its mark in the world of Bitcoin mining, with local operations already consuming a staggering 600 MW of power, as reported by Ethan Vera, the co-founder and COO of Luxor Mining, citing data from Ethiopian Electric Power.
In a recent post on X dated October 8, Vera highlighted that most mining facilities in Ethiopia are using mid-generation machines such as Bitmain’s S19J Pro and Canaan’s A1346 models. These machines are not only more affordable but also consume less power, making them a perfect fit for the country where electricity costs are relatively low.
Vera also mentioned that most mining farms in Ethiopia have set up evaporative cooling systems, such as water walls, although they are not necessarily needed for the majority of the year due to the cold climate in the region.
The country is on track to add hundreds of megawatts of capacity by the end of the year, further solidifying its position in the global mining market. Local Bitcoin miner, Kal Kassa, shared images of newly established mining facilities, confirming the rapid growth in the industry.
Seb Gouspillou, CEO of BigBlock Datacenter, also expressed optimism about the potential for hydropower in Africa, stating that Bitcoin mining could be a game-changer for the hydroelectric sector in the region.
These recent developments align with a previous report from asset management firm VanEck, which identified Ethiopia as one of seven nations actively mining Bitcoin with direct government support. Earlier this year, the government’s investment branch, Ethiopian Investment Holdings, announced a partnership with Hong Kong-based West Data Group for a $250 million project aimed at enhancing the nation’s digital infrastructure to support BTC mining activities.
Despite these advancements, challenges still remain. With an installed capacity of 5,200 MW, over 40% of Ethiopia’s 130 million citizens still lack access to electricity. The country has set a goal to generate 25 GW of renewable energy by 2030, but the issue of limited access to power continues to be a significant hurdle for the expansion of Bitcoin mining operations in the country.
Overall, Ethiopia’s rapid growth in the Bitcoin mining industry showcases the country’s potential to become a key player in the global market, driven by its affordable electricity costs and the government’s support for digital infrastructure development.