Ethiopia leverages low-cost energy for Bitcoin mining from renewable resources.
Ethan Vera, co-founder and COO of Luxor Mining, reported that Ethiopia is becoming a key player in Bitcoin mining, with the country already consuming 600 MW of electricity, citing data from Ethiopian Electric Power.
In an October 8 post on These machines are cheaper and consume less power, making them ideal for Ethiopia, where electricity costs are low.
He added:
“Most mining farms have evaporative cooling (water walls) installed, but due to the cold climate it is not necessary all year round.”
Meanwhile, Vera emphasized that Ethiopia is ready to solidify its position in the global mining market by adding hundreds of megawatts of capacity by the end of the year.
Local Bitcoin miner Kal Kassa confirmed this trend when he shared images of his newly established mining facility.
Likewise, Seb Gouspillou, CEO of BigBlock Datacenter, echoed this sentiment, highlighting the potential of hydropower in Africa. He said:
“It’s a miracle in the hydropower sector. It was previously unthinkable that all of the African dams currently under construction would be able to sell as much power as they can produce. Bitcoin solves this problem.”
This development is consistent with a previous report by asset management firm VanEck, which identified Ethiopia among seven countries mining Bitcoin with direct government support.
Earlier this year, Ethiopia Investment Holdings, the government’s investment arm, announced a preliminary agreement with Hong Kong-based West Data Group for a $250 million project to strengthen the country’s digital infrastructure to support BTC mining activities. .
But challenges still remain. Despite an installed capacity of 5,200 MW, more than 40% of Ethiopia’s 130 million citizens still do not have access to electricity. The country aims to generate 25 GW of renewable energy by 2030, but access to electricity remains a significant obstacle to expanding Bitcoin mining.
