Ethiopia emerged as a Bitcoin mining powerhouse in 2024, with its capacity growing to 2.25% of the total Bitcoin hash rate, making it the fourth-largest contributor globally.
While this rise may have seemed sudden, it was, in fact, the culmination of gradual and deliberate steps, including growing government openness to blockchain technologies, strategic investments in renewable energy, and increasing participation from private sector innovators.
In this article, we explore the key milestones that propelled Ethiopia into the ranks of global Bitcoin mining powerhouses.
1.) Russian Miner, BitCluster, Enters Ethiopia (December 2023)
In December 2023, Russian Bitcoin mining solutions provider, BitCluster, announced the construction of a 120-megawatt (MW) data center in Ethiopia. The facility, located in the capital city of Addis Ababa on the grounds of the Kilinto high-voltage substation, spans 30,000 square meters and is set to become a cornerstone of Ethiopia’s Bitcoin mining infrastructure.
According to BitCluster’s press release, the data center will run entirely on renewable energy sourced from the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydropower project, with a capacity of 5.15 GW. The Kilinto high-voltage substation’s state-of-the-art infrastructure promises an uninterrupted power supply with 99% uptime, ensuring reliable operations for this large-scale mining facility.
Sergey Arestov, Co-Founder of BitCluster, highlighted Ethiopia’s vast hydropower potential, calling it a ‘new place of attraction for global mining.’
This project not only signaled Ethiopia’s readiness to attract foreign investment, but also demonstrated its ability to capitalize on its renewable energy resources to fuel sustainable growth in the Bitcoin mining sector.
2.) Local Miner QRB Labs’ to Establish Mining Operations (December 2023)
In December 2023, QRB Labs, a local company co-founded by Ethiopian-origin entrepreneurs, including Dr. Nemo Semret, a former Google engineer, announced its plans to establish a Bitcoin mining site on the outskirts of Addis Ababa.
Founded in 2021, QRB Labs specializes in providing data center services for international clients, focusing on high-energy computational tasks such as Bitcoin mining.
What sets QRB Labs apart is its modular approach to mining. Its operation utilizes shipping containers equipped with 100–300 high-power computers per module, allowing for seamless scalability. The initial site, strategically located near an Ethiopian Electric Power (EEP) substation, benefits from a special agreement for electricity supply, leveraging surplus hydroelectric power, or ‘stranded’ energy, bottlenecked by lack of distribution.
The firm said it would gradually scale its power consumption to 150 megawatts – equivalent to the energy needs of a small city.
3.) Government Signs $250 Million Mining Deal with West Data Group (February 2024)
On February 15 2024, Ethiopian Investment Holdings (EIH) signed a $250 million memorandum of understanding with the Hong Kong-based West Data Group’s Center Service PLC, a deal expected to kickstart Bitcoin mining operations.
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.
4.) Chinese Miners Arrive in Ethiopia (February 2024)
In February 2024, Chinese companies had arrived in Ethiopia to take advantage of the country’s new generation capacity from the Grand Ethiopian Renaissance Dam (GERD).
Chinese #Bitcoin Miners Shift Focus to #Ethiopia After 2021 Beijing Ban
Despite #Ethiopia’s ban on cryptocurrency trading, it permitted #Bitcoin mining from 2022 onward.https://t.co/H8eXHU2tZ9
— ₿itcoin Xoe 🇭🇹 (@Bitcoin_Xoe) March 23, 2024
The Renaissance Dam, which is now completely filled, elevated Ethiopia’s installed generation capacity to 5.3 gigawatts, with 92% of this capacity sourced from hydropower, a renewable energy source.
According to the report, the state power monopoly already struck power supply deals with 21 Bitcoin mining companies, all but two being Chinese. As a result, Ethiopia rose to become one of the world’s top recipients of Bitcoin mining machines.
For Bitcoin miners, particularly those from China where, as reported by BitKE in 2021, the country ran a purge on the industry, Ethiopia presents a distinctive combination of economic and political benefits.
China🇨🇳 Intensifies Crypto Crackdown with License Suspensions to Defying Companies: https://t.co/2Pl48DTGVy
— BitKE (@BitcoinKE) July 6, 2021
Some executives even view Ethiopia as a potential competitor to Texas, which accounts for as much as a quarter of the global Bitcoin mining capacity.
5.) Ethiopian Electric Power Earns Dollars As Mining Demand Rises (February 2024)
In February 2024, as mining firms continued to troop to Ethiopia, the Ethiopian Electric Power (EEP) announced that it had received over $2 million in foreign currency payments from two recently approved data mining companies operating in the country.
By late May 2024, the utility firm reported revenue of $10.1 million over the previous 9 months from providing energy to data mining companies operating in the country.
In August 2024, Ethiopian Electric Power (EEP), said it had earned $27 million from electricity sales to data miners in less than a year.
“We had to restrict sales due to oversupply concerns,” said CEO Ashebir Balcha.
By November 2024, EEP had reportedly signed power purchase agreements with 25 bitcoin mining companies generating over $55 million over the past previous 10 months.
🇪🇹 BITCOIN | #Ethiopia Government Generates $55 Million from #Bitcoin Mining Operations Over the Past 10 Months
Ethiopia’s current mining capacity translates to a significant 2.25% of the total Bitcoin hash rate.https://t.co/tzRHVlkhLz pic.twitter.com/NBvvfC32UZ
— BitKE (@BitcoinKE) November 7, 2024
These mining operators are substantial consumers of electricity, each requiring between 10MW and 100MW, it was noted.
6.) BitCluster Installs 12,000 Bitcoin Mining Devices (September 2024)
In September 2024, Russian mining solutions firm, BitCluster, revealed progress at its 30,000 square meter Kilinto high-voltage substation.
According to the firm, it had deployed over 12,000 Bitcoin mining machines.
7.) Ethiopia Hosts Africa Bitcoin Mining Summit (October 2024)
On October 3 2024, the Green Africa Mining Alliance (GAMA) hosted the Africa Bitcoin Mining Summit (ABMS ‘24) at Kuriftu Resort in Entoto Park, Addis Ababa.
Launched in 2022, the Green Africa Mining Alliance (GAMA) is an association of Bitcoin miners across Africa.
Currently, the association is composed of the following teams:
- Trojan Mining (Nigeria)
- Ethiopia (QRB Labs)
- Sukuma Ventures (Kenya)
- BigBlock Data Center (Congo)
- Quantum Hash Ventures (Zambia)
8.) Bitfufu Enters Ethiopia (October 2024)
In October 2024, Bitfufu, a fast-growing digital asset mining service and world-leading cloud-mining service provider, announced it had entered into a definitive agreement to acquire a majority stake in an 80-megawatt (MW) Bitcoin mining facility in Ethiopia.
According to the firm, the transaction marks the start of the company’s transition from an asset-light strategy to one that manages a diverse and robust portfolio of Bitcoin mining infrastructure. As of June 30 2024, BitFuFu’s hosting capacity was 522 MW, all of which is hosted by third parties.
Upon completion of this transaction, BitFuFu’s hosting capacity will surpass the 600MW mark, approximately 13% of which will reside in sites owned and operated by the company.
9.) West Data Group Breaks Ground on New Mining Site (November 2024)
In November 2024, Hong Kong-based data center service provider, West Data Group, broke ground on the construction of a 20MW Bitcoin mining facility in Wolaita Sodo City in Southern Ethiopia.
According to local reports, the facility is expected to begin operations in six months while estimated to entail an investment of $15 million.
Kal Kassa, an advisor to West Data Group, said the facility will house nearly 6,000 specialized Bitcoin mining units upon completion. Kassa says the import of essential mining equipment is already underway as the Group moves to meet its six-month target.
West Data Group, which signed an MOU with the Ethiopian Investment Holdings in February 2024, has already set up a data mining facility in Bole Lemi Industrial Park, with a capacity of 30 MW and an estimated investment of $20 million.
🇪🇹 BITCOIN | The Ethiopian Sovereign Wealth Fund to Start Mining Bitcoin Under a $250 Million Deal
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… pic.twitter.com/VzOX7StrVj
— BitKE (@BitcoinKE) February 23, 2024
According to Kassa, the company has invested approximately $30 million in operational facilities to date.
10.) BIT Mining Enters Ethiopia in $14.3 Million Deal (December 2024)
In December 2024, NYSE listed BIT Mining Limited announced the acquisition of 51-megawatt crypto mining data centers and 17,869 high-performance Bitcoin mining machines in Ethiopia in a transaction valued at $14.3 million on December 3 2024.
“Upon completion of the first phase, a 35-megawatt operational and electrified crypto mining data center and all the BTC mining machines will be transferred to the company. The first phase is expected to close in the next few days,” said a press release.
“The second phase, which involves transfer of the remaining data centers to the company, is expected to close upon completion of construction of the remaining data centers.”
This latest strategic investment, one of several we have highlighted in the course of the article, marks Ethiopia’s ascension to the forefront of the crypto-mining industry.
By attracting major players, Ethiopia solidified its position as a key hub for sustainable Bitcoin mining. With capacity still high and facing a lack of distribution infrastructure for the generated electricity, Ethiopia’s role in the Bitcoin ecosystem may well expand further in 2025.
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