Ethiopia's bitcoin mining industry commands 2.5% of global hash rate

Ethiopia is rapidly emerging as a significant player in the global Bitcoin mining industry, currently accounting for 2.5% of the world's hash rate, according to recent reports from CryptoSlate. 

This surge in activity has been largely fueled by investments from Chinese firms, particularly following China's ban on Bitcoin mining in 2021. Notable companies such as Bitmain-backed BitFuFu and BIT Mining have established large-scale operations in Ethiopia, attracted by the country’s abundant hydropower resources and competitive energy prices.

Kal Kassa, a local Bitcoin miner, highlighted this trend, stating, "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." The EEP has reported that local mining operations currently consume around 600 megawatts of electricity, with projections indicating this could rise to 1 gigawatt by the end of the year, potentially elevating Ethiopia's share of the global hash rate to 7%.

The Ethiopian government has actively sought to position the country as a Bitcoin mining hub, generating over $55 million in revenue from agreements with 25 mining companies in just ten months. The influx of miners has had a transformative impact on the local economy, with Boyd Cohen, a Bitcoin mining advocate, suggesting that early-adopting Bitcoin countries like Ethiopia could emerge as new economic leaders in the coming decades.