Ethiopia is leveraging its hydropower surplus to become a key player in global Bitcoin mining and Africa’s digital economy.
Why Ethiopia is in the Crypto Spotlight
1. Hydropower Advantage: The Grand Ethiopian Renaissance Dam (GERD) produces 16,000 GWh/year, far more than the country consumes.
2. Cheap Electricity: Electricity prices are less than half of what miners pay in the U.S., enabling efficient Bitcoin mining.
3. Post-China Ban Opportunity: After China banned Bitcoin mining in 2021, Ethiopia seized the opportunity to attract displaced miners. Major firms like:
1. BitFuFu
2. Munich International Mining (MIM)
3. BIT Mining (BTCM)
have already invested over $14 million to deploy 51 MW of mining capacity and nearly 18,000 rigs.
Growing Global Impact
✓ Current share of global Bitcoin hash rate: ~2.5%
✓ Projected share by end of 2025: ~7%
✓ Expected power consumption: 600 MW (with potential to scale to 1 GW)
Economic Impact
– Annual revenue from mining: ~$65 million
– Future projections show this number rising significantly as infrastructure scales.
Broader Vision: Ethiopia’s move into Bitcoin mining aligns with a larger goal to modernize its digital economy, reduce dependence on foreign energy exports, and build tech and blockchain leadership in Africa.
Key Takeaway: With its renewable energy edge and fast-growing hash rate share, Ethiopia is not just mining Bitcoin—it’s mining global relevance in the crypto economy.
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