Ethiopia is quickly becoming a Bitcoin mining powerhouse, with 600MW of power used by local miners, and more is expected this year.
According to Ethan Vera, the co-founder and COO of Luxor Mining, who cited data from Ethiopian Electric Power in an X thread, the country’s Bitcoin mining sector is growing, and at this point, miners are using 600MW of electricity.
As part of its rapid expansion in the global mining market, the nation, which currently has about 5,200 MW of installed generation capacity, most of which comes from hydropower with the remaining amount coming from wind and thermal sources, is expected to add several hundred megawatts of capacity by the end of the year, according to Vera.
The co-founder of Luxor Mining pointed out that most mining companies use mid-generation equipment, like the A1346 models from Canaan and the S19J Pro from Bitmain.
Ethiopia is a “great place to use this class of machine” because of Ethiopia’s cheap electricity prices, which benefit these devices, which are usually more economical and power-hungry, according to Vera. Ethan Vera:
Most mining farms had evaporative cooling (water walls) set up, although its not needed for the majority of the year given the cold climate.”
Ethiopia’s calculated entry into the Bitcoin mining industry fits with its larger initiative to build the infrastructure needed for artificial intelligence and data mining training.
Ethiopian Investment Holdings and Hong Kong-based West Data Group announced in February that Ethiopia would provide preliminary funding for a $250 million initiative to improve the nation’s digital infrastructure.
The government has continuously referred to such activities as part of its high-performance computing plan, which includes Bitcoin mining, even if the specifics of the transaction are yet unknown.
Due to Ethiopia’s government-approved entry into the cryptocurrency market in 2022 and China’s 2021 ban on mining, miners looking for new chances in areas with cheaper electricity prices are becoming increasingly interested in Ethiopia.
Even with the country’s efforts to increase its energy supply, around half of Ethiopia’s 120 million citizens still need access to it.
