Ethiopia has embraced the bitcoin mining industry in 2024, offering an attractive electricity rate of USD 3.2 cents per KWh to cater to the growing demand from miners. With a population of 126 million people, the state-owned power producer, Ethiopian Electric Power (EEP), has seen a significant increase in revenue from bitcoin miners. In the past year alone, EEP generated USD 55 million from this sector, and projections for the upcoming year suggest a revenue of USD 123 million.
Looking back at the events and achievements of 2024 in Ethiopia, it becomes evident that the country has become a hotspot for bitcoin mining activities. The efforts made by key players in the industry have set a precedent for other energy-rich nations to follow suit and tap into the potential of cryptocurrency mining.
In the first quarter of 2024, there were several notable events that took place. The Financial Accounting Standards Board issued an update on accounting for crypto assets, while Russian and Chinese investors set up mining facilities in Ethiopia. Media coverage from outlets like RT, BBC News, and The Economist shed light on the growing interest in bitcoin mining in the country.
Moving on to the second quarter, Dr. Nemo Semret of QRB Labs shared insights on bitcoin mining in Ethiopia through various podcasts and publications. Bloomberg also featured Ethiopia as a potential paradise for crypto miners, further highlighting the country’s emergence in the industry.
The third quarter saw significant developments, including the announcement of the Private Key Infrastructure (PKI) initiative by Prime Minister Abiy Ahmed to support cryptographic messaging. BitCluster deployed a large number of mining machines in Ethiopia, and the eCrypto GitHub page translated the bitcoin whitepaper into Amharic.
The fourth quarter of 2024 was marked by key acquisitions and events in the bitcoin mining sector. Companies like BitFuFu and BIT Mining Limited made significant investments in Ethiopian mining facilities, while conferences like the Africa Bitcoin Mining Summit and The Bitcoin Summit ’24 showcased the country’s potential as a mining hub.
Looking ahead, Ethiopia aims to contribute 1 GW of energy to the Bitcoin network, signaling its commitment to the industry’s growth. The government’s support in areas like electricity production, contract terms, customs procedures, and tax laws will be crucial for the future of bitcoin mining in the country.
As we enter a new year, the outlook for bitcoin mining in Ethiopia is promising, with opportunities for collaboration and growth on the horizon. By staying focused on key priorities and working together, Ethiopia can solidify its position as a major player in the global bitcoin mining industry.