Ethiopia is poised to commence Bitcoin mining through a new collaboration with Data Center Service, a subsidiary of West Data Group.
On February 15 2024, the Ethiopian Sovereign Wealth Fund, Ethiopian Investment Holdings (EIH), inked a memorandum of understanding with the Hong Kong-based West Data Group’s Center Service PLC, a deal expected to kickstart Bitcoin mining operations.
It's official!🥂
The Ethiopian Government will be mining bitcoin through it's partnership with an undisclosed international company with experiences in bitcoin and data mining🫱🏽🫲🏿
The partnership will be for the purposes of a multi-million dollar project in Ethiopia 🇪🇹 pic.twitter.com/mX3I5KAjT3
— Kal Kassa (@KalKassa) February 16, 2024
According to Ethiopia-based Hashlabs Mining CEO, Kal Kassa, the deal includes setting up Bitcoin mining operations using Canaan Avalon miners and is part of the country’s broader strategy to leverage its technological and energy resources to attract international investment and foster economic growth.
The partnership is under a general agreement for a groundbreaking $250 million data mining project ‘that is dedicated to establishing cutting-edge infrastructure for data mining and artificial intelligence training operations in Ethiopia,’ according to the EIH.
West Data Group is a blockchain-powered fintech that established its first data center in 2017 in Kentucky. It has centers in:
- Texas
- Kentucky
- Kazakhstan
- Angola
- Kenya
According to the company’s website, ‘from 2021, we repositioned its [the company’s] strategic focus on Bitcoin mining, digital currency investment and trading.’
Ethiopian Investment Holdings (EIH) prides itself as the largest sovereign wealth fund in Africa, with over $150 billion in assets under management and additional dividend income inflow, representing Ethiopia’s long-term commercial and investment interest.
EIH encompasses close to 30 state-owned enterprises and holds flagship enterprises such as Ethiopian Airlines and Ethio Telecom in its portfolio. Its subsidiaries span multiple sectors and employ about a quarter of a million employees.
According to a recent report, following the filling of its Grand Renaissance Dam, (GERD) the state power monopoly has already struck power supply deals with 21 Bitcoin mining companies, and Ethiopia has already risen to become one of the world’s top recipients of Bitcoin mining machines.
🇪🇹 BITCOIN | Controversial $4.2 Billion Ethiopia Mega Dam Has So Far Drawn ~21 #Bitcoin Miners
Currently, Ethiopian Electic Power, the state energy utility, charges Bitcoin miners a fixed rate of 3.14 US cents per kilowatt-hour for electricity sourced from substations, a price… pic.twitter.com/sDtXOKPn0t
— BitKE (@BitcoinKE) February 9, 2024
These Bitcoin mining companies pay in foreign currency for the electricity they consume at a time the country is in dire need of foreign currency inflows.
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