Ethiopia is making strides in the world of Bitcoin mining by leveraging its abundant low-cost energy from renewable sources. According to Ethan Vera, the co-founder and COO of Luxor Mining, local operations in the country are already consuming 600 MW of power. Most mining facilities in Ethiopia are using mid-generation machines like Bitmain’s S19J Pro and Canaan’s A1346 models, which are not only more affordable but also consume less power, making them a perfect fit for the country where electricity costs are low.
Vera also mentioned that many mining farms have evaporative cooling systems set up, although they are not necessary for most of the year due to the cold climate in Ethiopia. The country is expected to add even more capacity in terms of megawatts by the end of the year, further solidifying its position in the global mining market.
Local Bitcoin miner Kal Kassa shared images of newly established mining facilities, confirming the growing trend of Bitcoin mining in Ethiopia. Seb Gouspillou, the CEO of BigBlock Datacenter, highlighted the potential for hydropower in Africa, calling it a “miracle” for the hydroelectricity sector. He emphasized that the construction of African dams can now guarantee to sell as much electricity as they produce, thanks to Bitcoin mining.
Ethiopia was also identified in a report by asset management firm VanEck as one of seven nations actively mining Bitcoin with direct government support. Earlier this year, Ethiopian Investment Holdings announced a preliminary agreement with Hong Kong-based West Data Group for a $250 million project aimed at enhancing the nation’s digital infrastructure to support BTC mining activities.
Despite these advancements, challenges still exist. With an installed capacity of 5,200 MW, over 40% of Ethiopia’s 130 million citizens still lack access to electricity. The country has ambitious goals to generate 25 GW of renewable energy by 2030, but the issue of access to power remains a significant hurdle for the expansion of Bitcoin mining in Ethiopia.
In conclusion, Ethiopia’s focus on renewable energy sources for Bitcoin mining is not only beneficial for the country’s economy but also aligns with global efforts towards sustainable mining practices. As the nation continues to invest in its digital infrastructure and renewable energy projects, it is poised to play a significant role in the future of Bitcoin mining on the African continent.