Bitcoin Mining Operations Contribute to 18% of Total Electricity Sales Within Ethiopia
In the heart of Africa, Ethiopia has been making headlines for its burgeoning Bitcoin mining sector. Over the past year, the country has seen a significant surge in this digital gold rush, generating around $55 million in revenue for the state-owned Ethiopian Electric Power (EEP) by selling surplus hydropower to Bitcoin miners [2].
This influx of revenue has been a double-edged sword. While it has provided a new revenue stream for EEP, enabling reinvestment in the country's electrical infrastructure, it has also led to major electricity consumption concerns. Cryptocurrency mining is reportedly consuming about one-third of all electricity generated in Ethiopia in 2025, leading to public discontent and fears about shortages affecting critical sectors, especially in regions still facing power outages [1][3].
As a result, the government and EEP have suspended new power licenses for crypto mining and announced plans to cease all mining operations to prioritize domestic consumers and strategic industries [1][4]. Despite its economic benefits, Ethiopia is currently phasing out Bitcoin mining due to growing energy constraints and regulatory concerns.
The boom in Bitcoin mining in Ethiopia can be attributed to the country's low electricity costs and abundant hydroelectric power. The reduced electricity costs for mining companies are due to the commissioning of a new hydroelectric plant on the Blue Nile River [2].
Foreign miners, including Chinese companies, play a key role in the sector’s growth. Ethiopia has attracted several foreign companies due to its favourable conditions. There are currently over 20 registered mining companies and 11 operating in the country, with many foreign firms leading the expansion of mining activities [2][3]. Bitcoin miner Kal Kassa reports that mining operations in Ethiopia account for 2.5% of Bitcoin's global hash rate.
The investment by Marathon Digital Holdings in "green" Bitcoin mining operations in Kenya is not related to Ethiopian Electric Power or the Bitcoin mining operations in Ethiopia.
The crypto mining sector has contributed to a 2% increase in Ethiopia’s GDP and employment growth, reflecting its recent positive economic impact before the crackdown [5]. This reflects a complex balance between economic gain from selling electricity for Bitcoin mining and the need to manage national electricity supply priorities amid infrastructure constraints.
References:
- Ethiopia suspends power licenses for Bitcoin miners amid energy crisis
- Bitcoin mining in Ethiopia: A new revenue stream for the state-owned Ethiopian Electric Power
- Ethiopia's Bitcoin boom and bust: A tale of energy and economics
- Ethiopia to phase out Bitcoin mining amid energy concerns
- Bitcoin mining in Ethiopia: A boost to the economy
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