Ethiopia is becoming one of the most important players in the worldwide Bitcoin mining market. The country’s lowest electricity cost and the government’s investment in the power sector makes Ethiopia an ideal country for crypto mining. Current trends show that 600MW of energy is being used in Bitcoin mining activities in Ethiopia, with more to follow by the end of this year.
Government and Industry Support
In an X post on Tuesday, Ethan Vera, co-founder of a leading Bitcoin mining service provider, highlighted the country’s increasing role in the cryptocurrency mining sector. Ethiopian Electric Power (EEP), the government-owned electricity supplier, has endorsed Bitcoin mining with an existing operation using 600MW.
In particular, the energy provider shared intentions to further expand the capacity by several hundred MWs in the following months. Ethan Vera recently visited several mining farms in Ethiopia. Others from the industry and Ethiopian government officials were present during Vera’s visit.
Ethiopia’s mining operations mainly use mid-generation mining rigs with Antminer S19J Pro and Avalon A1346 models. These machines have a hashrate capacity of approximately 100 TH/s (Terahashes per second). All of the units have an energy efficiency of 30 joules per terahash (J/TH).
Vera further said that because the country’s electricity costs are very low, it is an appropriate place to operate these mining rigs. Low power costs make mining more efficient, and thus, Ethiopia has an advantage over other countries.
Bitcoin Faces Key Resistance as Bulls Eye Potential BreakoutWith the current energy of 600 MW, the total hashrate capacity of Ethiopia is believed to be approximately 19 EH/s. This is equivalent to 2.5% of the overall hashrate of the Bitcoin network worldwide. Ethiopia’s hashrate increase has attracted investors and miners from across the globe.
Chinese Investor Interest
Bloomberg had earlier highlighted that Bitcoin mining had picked up in Ethiopia, with Chinese investors showing keen interest. This interest comes after China banned Bitcoin mining in 2021, and many Chinese companies in the mining industry had to find new locations. Due to cheap energy and government encouragement, Ethiopia has become an ideal location for these operations.
Ethiopia is still increasing its energy capacity for Bitcoin mining. Therefore, further growth of the country’s hashrate of the global Bitcoin is expected by the experts. Ethiopia is on the path of becoming one of the largest cryptocurrency mining nations in the world due to government support and cheap power.
