Ethiopia becomes a key player in Bitcoin mining
The country’s attractiveness to Bitcoin miners comes in the wake of China’s 2021 mining ban, leading to companies like BitFuFu and BIT Mining relocating to Ethiopia due to its plentiful hydropower resources.
Ethiopia has rapidly become a major player in Bitcoin mining, now contributing 2.5% of the global hash rate. According to local miner Kal Kassa, this figure is expected to more than double within the year, with local operations consuming 600 MW of power. By year-end, this could rise to 1 gigawatt, increasing Ethiopia’s share to 7% of the global Bitcoin network’s hash rate.
The country’s rise as a mining powerhouse follows China’s 2021 ban on Bitcoin mining, prompting many Chinese miners to relocate. Companies like Bitmain-backed BitFuFu and BIT Mining have set up operations in Ethiopia, attracted by the nation’s abundant hydropower and surplus renewable energy.
The Ethiopian government has actively supported the industry, generating over $55 million in revenue over the past 10 months from agreements with Bitcoin mining companies. This shift could position Ethiopia and other early Bitcoin-adopting nations as new economic leaders in the coming decades.
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