As an analyst with extensive experience in the global mining industry and a keen interest in emerging markets, I find Ethiopia’s foray into Bitcoin mining intriguing and strategic. Having worked extensively in regions with vast untapped potential, I can appreciate the opportunities that this move presents.
In simpler terms, Ethiopia is rapidly becoming a significant center for Bitcoin mining, with existing miners currently using around 600 megawatts of electricity, and even more capacity anticipated to be available this year.
The Bitcoin (BTC) mining sector in Ethiopia is picking up speed, according to Ethan Vera, co-founder and COO of Luxor Mining. In a recent conversation on X, he shared that crypto miners are presently using approximately 600 megawatts of electricity, as per information from the Ethiopian Electric Power.
The country, rich in hydropower, currently boasts around 5,200 MW of installed power generation and supplements this with wind and thermal sources. By year-end, it’s anticipated that Vera expects an additional significant amount of power capacity (hundreds of megawatts) to be added, fueled by its rapid growth in the global mining industry.
The co-founder of Luxor Mining commented that many mining operations are currently employing mid-tier devices such as Bitmain’s S19J Pro and Canaan’s A1346, which are often less expensive and require less power. Given Ethiopia’s low electricity prices, Vera states that this makes it an “excellent location for utilizing machines of this type.
In most mining farms, water-wall evaporative cooling systems were installed, but these are usually unnecessary due to the region’s cool climate for much of the year.
Ethan Vera
Ethiopia’s decision to delve into Bitcoin mining is consistent with its wider objective of establishing facilities for data mining and AI education.
In February, Ethiopian Investment Holdings disclosed a tentative alliance worth $250 million with Hong Kong’s West Data Group for a project that aims to bolster Ethiopia’s digital framework. The specifics of the arrangement are yet to be defined, but the government has repeatedly emphasized such endeavors as integral parts of their strategic plan for high-performance computing, which encompasses Bitcoin mining among other activities.
The 2021 prohibition on cryptocurrency mining in China and the subsequent government approval for mining in Ethiopia in 2022 has sparked growing interest among miners looking for cost-effective energy alternatives. Although Ethiopia has made strides in increasing its electrical supply, approximately half of its 120 million residents still do not have access to electricity.
Read More
Sorry. No data so far.
2024-10-09 13:04