Ethiopia is making significant strides in the cryptocurrency world, emerging as a major hub for Bitcoin mining.
Following China’s 2021 ban on Bitcoin mining, numerous companies, including BitFuFu and BIT Mining, relocated their operations to Ethiopia, drawn by the country’s abundant hydropower resources. This shift has enabled Ethiopia to now contribute 2.5% of the global Bitcoin network’s hash rate—a figure expected to triple by the end of the year.
The rapid growth of Bitcoin mining in Ethiopia has been facilitated by the Ethiopian government’s support. Over the past 10 months, the African country has generated over $55 million in revenue through agreements with Bitcoin mining companies. According to local miner Kal Kassa, the sector currently consumes 600 MW of power, a figure projected to rise to 1 gigawatt by year-end, potentially increasing Ethiopia’s share to 7% of the global hash rate.
Leading the charge is BIT Mining, a prominent player in the cryptocurrency mining sector. BIT Mining recently completed the first phase of a $2.26 million acquisition, securing a 35-megawatt data center in Ethiopia and over 17,800 Bitcoin mining machines. This marks a critical step in the company’s expansion into Africa, a region increasingly recognized as a hub for blockchain and digital assets.
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BIT Mining has ambitious plans to scale up operations in Ethiopia. The second phase of its acquisition, set for completion in early 2025, will add 51 megawatts of capacity, further solidifying its foothold in the region.
Alongside Bitcoin, BIT Mining is also expanding its portfolio to include other cryptocurrencies like Litecoin and Dogecoin, capitalizing on recent price surges.
