Ethiopia is quickly establishing itself as a significant player in the Bitcoin mining sector, with local operations currently utilizing around 600MW of electricity. This figure is anticipated to rise as additional mining capacity is set to be introduced within the year.
According to Ethan Vera, co-founder and COO of Luxor Mining, the Bitcoin mining scene is thriving, with current energy consumption at 600MW, as reported in an X thread referencing Ethiopian Electric Power data. The nation boasts an installed generation capacity of about 5,200 MW, primarily from hydropower, supplemented by wind and thermal energy. As Ethiopia continues to expand its role in the global mining landscape, it is expected to bring several hundred more megawatts online by year-end.
The co-founder of Luxor Mining pointed out that many mining operations are currently utilizing mid-generation machines, like the Bitmain S19J Pro and Canaan A1346 models. These machines are generally more cost-effective and consume less power, which is advantageous given Ethiopia's low electricity rates. Vera emphasizes that this makes Ethiopia an excellent location for deploying this type of equipment.
Ethiopia's strategic entry into Bitcoin mining is part of a larger initiative to enhance its infrastructure for data mining and artificial intelligence development. In February, Ethiopian Investment Holdings revealed a preliminary agreement with Hong Kong's West Data Group to invest $250 million in improving the nation's digital infrastructure. Although the specifics of the agreement are still vague, the government has consistently framed these efforts as integral to its high-performance computing strategy, which encompasses Bitcoin mining as well.
Source: Crypto.news