Ethiopia’s Bitcoin mining surge now accounts for 2.5% of global hash rate

Ethiopia is emerging as a significant player in Bitcoin mining, with local operations now accounting for 2.5% of the global hash rate.

On Dec. 4, local Bitcoin miner Kal Kassa stated:

“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 noted that the EEP reports local operations already consuming 600 MW of power. By year-end, that number could rise to 1 gigawatt, representing as much as 7% of the global Bitcoin network’s hashrate.

Ethiopia’s 2.5% contribution to the global Bitcoin hash rate would place it among the top five Bitcoin mining nations, joining established leaders like the United States, China, and the Czech Republic.

Chinese miners flock to Ethiopia

Meanwhile, the African country’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 large mining operations in Ethiopia. Bitmain itself has also supported infrastructure development in the region.

Similarly, BIT Mining has also recently entered the Ethiopian market, acquiring a 51 MW Bitcoin mine and 17,869 mining rigs for $14.3 million

Ethiopia’s appeal stems from its abundance of hydropower and surplus renewable energy. The government has actively worked to position the country as a Bitcoin mining hub, with the state-owned EEP generating over $55 million in revenue over the past 10 months from agreements with 25 Bitcoin mining companies.

Boyd Cohen, a Bitcoin mining advocate, highlighted the broader economic implications of this shift. He suggested that early-adopting Bitcoin countries could emerge as new economic leaders in the coming decades, witnessing a major redistribution of wealth.

Source