Connect with us

Hi, what are you looking for?


Cheap Energy Cost Fuels Chinese Bitcoin Miners Migration to Ethiopia

Ethiopia has become a lucrative destination for Bitcoin miners with lower energy costs and friendly government policies driving the move.

According to Bloomberg, Bitcoin miners from China and other countries are setting up shop in the East African country followed by energy deals with electricity companies.

Last year, mining equipment including high-powered computers were placed at electric substations connected to the Grand Ethiopian Renaissance Dam showing signs of a departure from other jurisdictions.

In the following months, Bitcoin miners now look to grow operations in Ethiopia and rival Texas counterparts who became the new hub after the mining ban in China two years ago.

Bitcoin Mining Executives Eye Prospects in Ethiopia

Ethiopia gave the green light to cryptocurrency miners two years ago and although trading remains prohibited mining companies will leverage on the reduced energy costs and partnerships with Chinese firms over the years.

Ethan Vera, the Chief Operating Officer of Luxor Technology, a mining services company, projected that Ethiopia is among the world’s top destinations for mining at the moment.

Nou Xu, founder of the China Digital Mining Association explained that Ethiopia will be a destination for Chinese miners thanks to friendly government policies and cheaper energy costs.

Per the Bloomberg report, Ethiopian state-owned power companies have signed agreements with 21 Bitcoin mining companies with 19 of them coming from China.

On the environmental front, Ethiopia’s electricity supply can rival Texas’ ability in a few years with numerous dams and renewable energy sources opening up in recent years.

The country’s GERD power project boosted its production to 5.3 gigawatts and will double Ethiopia’s capacity upon completion.

All this coupled with the lower cost is what crypto miners need to weather the storm amid macroeconomic factors. Vitaliy Borshenko added that the country’s advantages go beyond energy to environmental conditions.

“The ideal temperature for the miners is 5 to 25 degrees” Celsius (41F-77F). That is right in the average range of temperature in Ethiopia.” 

All Isn’t Certain for Bitcoin Miners

Despite the surge in Bitcoin miners moving to Ethiopia, future government policies remain uncertain because of the nature of the activity.

China was once the hub of cryptocurrency mining, but the government clamped down on miners, citing environmental factors leading to widespread migration and a slump in asset prices.

Although Ethiopia is looking for new sources of revenue and an inflow of foreign currency in its local market, nearly 50% of the population suffers energy problems.

This fact can cause a shift in government stance in the future as seen in the case of Kazakhstan and other countries that switched from a totally friendly stance to imposing certain limitations on mining activities.

#Bitcoin Miners Blamed for Energy Issues as Kazakhstan Looks to ‘Limit’ Mining

Ream More

— (@cryptonews) October 19, 2021

Nemo Senret, the CEO of QRB Labs noted the steps to get here while highlighting the uncertainty on the part of some miners towards the future.

“Ethiopia is heavily regulated, introducing a new sector like this has been a big challenge, and we’ve been working for the last two years to get all the necessary permissions from the government.”

The post Cheap Energy Cost Fuels Chinese Bitcoin Miners Migration to Ethiopia appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



The US Energy Information Administration (EIA) has agreed to discard any data it already collected in response to its emergency Bitcoin mining survey, court...


Bitcoin is witnessing a significant movement, with exchanges experiencing a near-record outflow of over $2 billion. According to a post by James Van Straten...


Alfa-bank, one of Russia’s biggest financial institutions, has created a “digital financial asset” (DFA) backed by gold, stocks, and cash. Per an Alfa-bank press...


AfreecaTV BJ (broadcast jockeys) stars have become the latest targets of increasingly sophisticated South Korean crypto scammers. Asia Kyungjae reported that the Seoul Central...


President Joe Biden is 81 years old, setting a record as the oldest president in history. The following is a list of celebrities who...


President Joe Biden is 81 years old, setting a record as the oldest president in history. The following is a list of celebrities who...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.