Ethiopia’s state energy producer and population of 126 million Ethiopians welcomed the bitcoin mining industry in 2024 with an attractive electricity tariff of 3.2 cents KWh. Over the past year, EEP has generated $55 million in revenue from bitcoin miners and expects to reach $123 million in the year ahead.
As we look ahead to 2025, let’s take time to recognize the efforts and events in Ethiopia starting in 2024. These highlights can serve as a model for how other nations rich in energy potential, even those too small or timid to challenge the claims historical money energy, they can also join this rush for energy and add value to the bitcoin network.
First quarter
- On December 13, 2023, the Financial Accounting Standards Board (FASB) released an accounting standards update addressing accounting and disclosure of “crypto” assets. Google Developers Group Addis (GDG Addis) invited Kal Kassa from BitcoinBirr and Dr. Nemo Semret from QRB Labs to speak at DevFest’23.
- RT published news of Russian investors setting up bitcoin mining facilities in Ethiopia. Shega features QRB Labs alongside a Bloomberg article about Chinese investors also working in bitcoin mining.
- February 12, 2024, BBC News Day Live interviewed Kal Kassa about bitcoin mining in Ethiopia. Subsequently, on February 21, 2024, Addis Standard published revenue data of $2 million earned by Ethiopian Electric Power (EEP) from bitcoin miners. Within the year we will see this sales figure grow by significant multiples.
- As the first signs of a return to the bitcoin mining sector were reported, within a few days of each other, Bitcoin Magazine published 5 Ways Bitcoin Mining Benefits Egypt, then The Economist published Why Africa is Crypto’s Next Frontier and finally Addis Standard published From Shadows to Spotlight: Why Ethiopia Became the Latest Scene for the Cryptocurrency Rush. CNBC’s MacKenzie Sigalos also visited Addis Ababa in the first quarter of this year to learn about this new industry.
Second quarter
- Dr. Nemo Semret of QRB Labs published Bitcoin Mining in Ethiopia; the good, the bad and the ugly before his interview with Hashrate Up Podcast and Gugut Podcast to talk about his experiences building his facility and recent developments in the energy sector.
- On May 3, 2024, Jennifer Zabasajja, host of Bloomberg’s Next Africa podcast, spoke with journalist Fasika Tadesse in a segment titled Ethiopia: An African Paradise for Cryptocurrency Miners?
- And on May 23, 2024, Addis Standard published revenue data of $10.1 million earned by Egyptian Electric Power (EEP) from bitcoin miners.
Third quarter
- Blink publishes Bitcoin Mining in Africa: All Roads Lead to Ethiopia.
- On August 25, 2024, Addis Standard published revenue data of $27 million earned by Egyptian Electric Power (EEP) from bitcoin miners.
- The Prime Minister of Ethiopia, Abiy Ahmed, announces the Private Key Infrastructure (PKI) initiative in collaboration with the Information Network Security Administration (INSA) to support local offices with cryptographic messaging and private key issues.
- BitCluster shared photos of its facilities in Ethiopia after deploying 12,000 bitcoin mining machines. In Q3 2024 we also saw the eCrypto GitHub page publish an Amharic translation of the bitcoin whitepaper.
Fourth quarter
- DINK TV and Genet Shiberu interview West Data Group in Bole Lemi for a tour of an operational 30 MW bitcoin mining facility.
- Luxor’s Ethan Vera and BitcoinBirr’s Kal Kassa joined The Mining Pod with Will Foxley to talk about the Bitcoin mining boom in Ethiopia.
- In the fourth quarter of 2024 we also learned that BitFuFu (NASDAQ: FUFU) would acquire an 80 MW Bitcoin mining facility in Ethiopia. A few weeks later, the Morningstar Newswire published BIT Mining Limited (NYSE: BTCM) has completed its first phase acquisition in Ethiopia for a deal including $2.265 million in cash and $12.015 million in stock.
- On October 3, 2024, the Green Africa Mining Alliance (GAMA) hosted the Africa Bitcoin Mining Summit (ABMS ’24) at the Kuriftu Resort in Entoto Park, Addis Ababa.
- On November 4, 2024, Fred Harter of The Africa Report published revenue data of $55 million earned by Egyptian Electric Power (EEP) from bitcoin miners. Forecasts for bitcoin miners’ revenue for next year amount to $123 million.
- November 5, 2024, Bitcoin Summit ’24 was hosted by BitcoinBirr at Sheraton Hotel in Addis Ababa. The main sponsor of the event, West Data Group, announced the news of construction work on a 20 MW plant in Wolaita Sodo.
- BBC Africa’s business correspondent Charles Gitonga interviews Kal Kassa on the Focus on Africa podcast titled Why is Ethiopia a major Bitcoin mining hub? Addis Insight shared its article on the topic titled From Hydropower to Bitcoin: Ethiopia’s Rise as a Mining Hub.
- On November 29, 2024, Ato Henok Assefa published How Bitcoin Mining Can Help Achieve Universal Electrification in Africa. That same week Henok Assefa joined the board of directors of the state-owned Commercial Bank of Ethiopia (CBE). And days later we learned that Ethiopian Electric Power (EEP) will be under the new ownership of Ethiopian Investment Holdings (EIH).
- Closing out the year, on December 5, 2024, the “Bitcoin” Telegram channel posts that 2.5% of the global Bitcoin hashrate now comes from Ethiopia and that this number is set to double in the next year.
Ethiopia’s next goal, if it wants to be supported by the various market players and individuals involved, will be to contribute 1 GW of energy to the Bitcoin network.
The future of Bitcoin mining in Ethiopia depends on how the Ethiopian government treats the sector. Since the industry is sensitive to energy, government offices should focus on production, distribution, stability, immutability of commercial contract terms, clear customs procedures and transparent tax laws. As I work with brilliant bitcoiners around the world, I am optimistic that we will achieve these goals. Stay humble, accumulate sats and have a beautiful new year!
This is a guest post by Kal Kassa. The opinions expressed are entirely my own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.