Ethiopia's Bitcoin mining surge now accounts for 2.5% of global ...
Chinese firms like BitFuFu and BIT Mining have made significant investments in Ethiopia's growing mining sector. Ethiopia has emerged as a key player in Bitcoin mining, with local operations now contributing 2.5% to the global hash rate.
Local Bitcoin Miner's Announcement
On Dec. 4, Kal Kassa, a local Bitcoin miner in Ethiopia, announced that Bitcoin miners in the country now control 2.5% of the global hash-rate. According to Ethiopian Electric Power (EEP), this percentage is expected to more than double within one year.
Ethiopia's Growing Contribution
Ethiopia's local operations are currently consuming 600 MW of power, a number that could increase to 1 gigawatt by the end of the year. This could represent up to 7% of the global Bitcoin network's hash rate, placing Ethiopia among the top five Bitcoin mining nations.
Chinese Exodus to Ethiopia
Following China's ban on Bitcoin mining in 2021, many Chinese miners have relocated to Ethiopia. Companies like BitFuFu and BIT Mining have acquired large mining operations in the country, with Bitmain also supporting infrastructure development.
BIT Mining recently entered the Ethiopian market by acquiring a 51 MW Bitcoin mine and 17,869 mining rigs for $14.3 million.
Ethiopia's Appeal for Bitcoin Mining
Ethiopia's attractiveness for Bitcoin mining stems from its abundance of hydropower and surplus renewable energy. The government has actively positioned the country as a Bitcoin mining hub, with the state-owned EEP generating over $55 million in revenue from agreements with 25 Bitcoin mining companies over the past 10 months.
Economic Implications
Boyd Cohen, a Bitcoin mining advocate, emphasized the broader economic implications of Ethiopia's rise in the mining sector. He suggested that countries embracing Bitcoin early could become new economic leaders in the future, leading to a major redistribution of wealth.
For more crypto updates and analysis, visit CryptoSlate.
