Ethiopia’s Share in Bitcoin Hashrate Reaches 2.5%

Bitcoin miners based in Ethiopia now control 2.5% of the network’s computational power, according to local bitcoin miner Kal Kassa.

Bitcoin miners in Ethiopia now command 2.5% of the global hash-rate.

If trends continue, according to Ethiopian Electric Power (EEP), this will more than double within one year. pic.twitter.com/oW0G95TUDa

— Kal Kassa (@KalKassa) December 4, 2024

“According to Ethiopian Electric Power, if the trend continues, this figure will more than double within a year,” he added.

The figures align with recent statements by Luxor Mining co-founder and COO Ethan Vera. During a podcast The Mining Pod in November, the entrepreneur stated that the power consumed by miners in the country amounts to 600 MW. He noted that this figure could reach 1 GW by 2025, approximately 7% of the global bitcoin blockchain.

According to data from the Cambridge Centre for Alternative Finance, as of January 2022, there were no significant bitcoin mining operations in Ethiopia, with experts estimating its share of the hashrate at zero.

In 2023, Bloomberg journalists reported that the African country has become a popular relocation destination for Chinese miners. Following the effective ban on cryptocurrencies in China in 2021, they increasingly chose this jurisdiction for their operations.

Assessing the prospects of the bitcoin mining industry on the continent, Luxor analysts noted that Ethiopia has excess electricity generation with relatively low demand, offering attractive tariffs for miners.

Throughout 2024, major industry players such as BitCluster and BitFuFu began operations in the country. The Russian industrial mining operator launched a data center with a capacity of 120 MW, while the Bitmain-backed company acquired an existing bitcoin mining facility with 80 MW.

In December, BIT Mining announced the acquisition of mining farms in Ethiopia for $14.3 million, with a total capacity of 51 MW. The number of ASIC devices deployed there is nearly 18,000.

We’re happy to announce our further expansion into global #crypto network infrastructure today with our new deal to acquire more data centers and nearly 18,000 more #Bitcoin #mining machines. ⛏️

You can read the full press release on our website here ? https://t.co/2FZlsZLf0D https://t.co/hCIrW0TfqO

— BIT Mining Limited (@BITMining_BTCM) December 3, 2024

Earlier this year, Charlie Schumacher, vice president of the largest public mining company Marathon Digital, considered expansion into Africa. However, for a pilot project in the energy sector, the firm chose Kenya.