Ethiopia is rising as a major participant in Bitcoin mining, with native operations now accounting for 2.5% of the global hash rate.
On Dec. 4, native Bitcoin miner Kal Kassa acknowledged:
“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.”
This aligns with statements made by Ethan Vera, co-founder and COO of Luxor Mining, who famous that the EEP reviews native operations already consuming 600 MW of energy. By year-end, that quantity might rise to 1 gigawatt, representing as a lot as 7% of the global Bitcoin community’s hashrate.
Ethiopia’s 2.5% contribution to the global Bitcoin hash rate would place it among the many prime 5 Bitcoin mining nations, becoming a member of established leaders just like the United States, China, and the Czech Republic.
Chinese miners flock to Ethiopia
Meanwhile, the African nation’s rise as a mining hub follows China’s 2021 ban on Bitcoin mining, which prompted many Chinese miners to relocate.
Companies like Bitmain-backed BitFuFu have acquired giant mining operations in Ethiopia. Bitmain itself has additionally supported infrastructure growth within the area.
Similarly, BIT Mining has additionally lately entered the Ethiopian market, buying a 51 MW Bitcoin mine and 17,869 mining rigs for $14.3 million
Ethiopia’s enchantment stems from its abundance of hydropower and surplus renewable power. The authorities has actively labored to place the nation as a Bitcoin mining hub, with the state-owned EEP producing over $55 million in income over the previous 10 months from agreements with 25 Bitcoin mining firms.
Boyd Cohen, a Bitcoin mining advocate, highlighted the broader financial implications of this shift. He steered that early-adopting Bitcoin international locations might emerge as new financial leaders within the coming a long time, witnessing a serious redistribution of wealth.
