Ethiopia Plans State-Backed Bitcoin Mining Using Hydropower

• Ethiopia plans to expand state-linked Bitcoin mining using renewable hydropower.
• Officials seek an investment partner as mining becomes part of national growth plans.
• EIH may play a central role as Ethiopia balances mining expansion with grid strain.

Ethiopia is preparing to expand state-linked Bitcoin mining using renewable power. Prime Minister Abiy Ahmed disclosed the plan during the Finance Forward Ethiopia 2026 conference. He said the government wants to use clean energy for revenue and growth. The initiative is also tied to wider efforts on financial inclusion and digital transformation.

According to a X post, Ethiopia said it is seeking an investment partner to mine Bitcoin. The post described a more active government approach toward crypto and mining. It also confirmed that the initiative is linked to state-backed planning. Officials are positioning mining as part of national economic development.

Ethiopia Uses Hydropower and EIH Amid Grid Strain

Abiy linked the plan to Ethiopia’s energy advantage. He said the country has abundant renewable resources that can support mining operations. The government expects mining to generate returns over time. The goal is to convert power capacity into exportable digital value.

The strategy is expected to involve Ethiopian Investment Holdings (EIH). EIH is the country’s state-owned investment group and a large sovereign wealth vehicle in Africa. Abiy indicated the country is moving toward direct involvement instead of only licensing. Ethiopia has already issued mining approvals in past phases.

Ethiopia’s hydropower base is a major factor behind the plan. The country has leveraged the Grand Ethiopian Renaissance Dam (GERD) and other hydro projects for mining activity. Cheap electricity has drawn international mining firms. That demand has been tied to Ethiopia’s growing role in global mining supply.

The government has also shown caution around grid pressure. Ethiopia halted new crypto mining licenses last year due to strain on the electric system. Authorities cited stress on national power capacity. 

Ethiopia Signs Mining Deal as EIH Expands

Despite the pause, external partnerships continued to emerge. UAE-based Phoenix Group announced a deal with Ethiopian Electric Power (EEP). EEP is the state-owned utility responsible for the national electricity supply. The partnership focused on building a new mining data center.

Abiy also outlined industrial projects under EIH. He revealed that EIH has begun building a gold refinery. The plan targets value addition inside the country. It signals a move away from exporting unprocessed gold.

Related: Russian Central Bank Shifts Tone on Bitcoin Mining Role

“For many years, Ethiopia has been selling gold in its raw form,” Abiy said. “For the first time, EIH is building a gold refinery, and it will be finalised in the coming months.” He said the project would help preserve national wealth. He added it would create more value domestically.

EIH is also pursuing domestic currency-printing capacity. The plan is framed as part of building strategic national assets under public ownership. It aims to reduce reliance on foreign printing firms. Ethiopia would join a small group trying to print banknotes locally.

Abiy said EIH is working with crypto mining firms as well. He described the mining plan as an initiative expected to deliver returns in the coming years. His statement presented mining as part of a broader state investment agenda. 

The direction aligns with a trend tracked by VanEck. Asset manager VanEck has listed Ethiopia among countries using government resources for Bitcoin mining. Matthew Sigel, head of digital assets research at VanEck, has noted the rise of state-sponsored miners. He said more governments are supporting mining operations.

VanEck’s list includes Ethiopia, El Salvador, Russia, France, Bhutan, and the UAE. Japan was also cited as the 11th country added to the group. The listing highlights a shift in how states interact with mining. 

Ethiopia’s latest remarks add to the global focus on sovereign crypto strategies. The prime minister’s message suggests a stronger national role in Bitcoin mining. It also ties mining to clean energy policy. Future steps would depend on partners and grid capacity.