Ethiopia’s state-owned energy producer, and a population of 126 million Ethiopians, welcomed the bitcoin mining industry in 2024 with an attractive electricity tariff of 3.2 cents per KWh. Last year, EEP generated $55 million in revenue from bitcoin miners and expects $123 million in the next year.
As we look to the year 2025, let us take time to recognize the efforts and developments that have occurred in Ethiopia from the year 2024 onwards. These highlights can serve as a model for how other rich nations with energy potential, even those too small or timid to question the historical claims about money, you can also join this race for energy and add value to the bitcoin network.
First quarter
- December 13, 2023, the The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update which addresses the accounting and disclosure of “crypto” assets. Google Addis Developer Group (GDG Addis) invited Kal Kassa from BitcoinBirr and Dr. Nemo Semret from QRB Labs to speak at DevFest’23.
- RT published news about Russian investors. establishment of bitcoin mining facilities in Ethiopia. Shega features. QRB Laboratories along with a Bloomberg article about Chinese investors also working on bitcoin mining.
- February 12, 2024, BBC News Day Live interviewed Kal Kassa about bitcoin mining in Ethiopia. Then on February 21, 2024, Addis Standard released revenue figures of USD 2 million earned by Ethiopian Electric Power (EEP) of bitcoin miners. Within the year we will see this sales figure grow by significant multiples.
- When the first signs of return in the bitcoin mining industry were reported, within a few days of each other, Bitcoin magazine published 5 ways bitcoin mining benefits Ethiopia, then The Economist published Why Africa is the next frontier of cryptocurrencies and finally Addis Standard published From the shadows to the spotlight: why Ethiopia became the latest scene of the cryptocurrency fever. In the first quarter of this year CNBC’s MacKenzie Sigalos also visited Addis Ababa to learn about this new industry.
Second trimester
- Dr. AS Published Nemo Semret from QRB Labs Bitcoin Mining in Ethiopia; the good, the bad and the ugly before his interview with Hashrate Up Podcast and Gugut Podcast to talk about experiences in building their facilities and recent developments in the energy sector.
- On May 3, 2024, Bloomberg’s Next Africa podcast host Jennifer Zabasajja spoke with reporter Fasika Tadesse in a segment titled Ethiopia: an African paradise for cryptominers?
- And on May 23, 2024, Addis Standard released revenue figures of USD 10.1 million earned by Ethiopian Electric Power (EEP) of bitcoin miners.
Third quarter
- Blink publishes Bitcoin mining in Africa: all roads lead to Ethiopia.
- On August 25, 2024, Addis Standard published revenue figures of USD 27 million earned by Ethiopian Electric Power (EEP) of bitcoin miners.
- The Prime Minister of Ethiopia, Abiy Ahmed, has announced the Private key infrastructure (PKI) initiative in partnership 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 the third quarter of 2024 we also saw the eCrypto GitHub page published an Amharic translation of the bitcoin whitepaper.
Fourth quarter
- Interview with DINK TV and Genet Shiberu Western Data Group at 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 rise of Bitcoin mining in Ethiopia.
- In the fourth quarter of 2024 we also learned that BitFuFu (NASDAQ: FUFU) was set to acquire an 80 MW Bitcoin mining facility in Ethiopia. A few weeks later, Morningstar Newswire published BIT Mining Limited (NYSE: BTCM) completed first phase of acquisition in Ethiopia for an agreement that includes USD 2,265 million in cash and USD 12,015 million in shares.
- The Green Africa Mining Alliance (GAMA) organized the African Bitcoin Mining Summit (ABMS ’24) on October 3, 2024 at the Kuriftu Resort in Entoto Park, Addis Ababa.
- On November 4, 2024, Fred Harter of The Africa Report published revenue figures for 55 million dollars earned by Ethiopian Electric Power (EEP) of bitcoin miners. Forecasts for next year’s income for bitcoin miners stand at $123 million.
- November 5, 2024, Bitcoin Summit ’24 was hosted by BitcoinBirr at the Sheraton Hotel in Addis Ababa. The main sponsor of the event, West Data Group, announced the news of a 20 MW installation at Wolaita Sodo opening the way
- BBC Africa business correspondent Charles Gitonga interviews Kal Kassa on the Focus on Africa podcast titled Why is Ethiopia a major hub for Bitcoin mining? Addis Insight shared its article on the topic titled From hydroelectric power to Bitcoin: the rise of Ethiopia as a mining center.
- November 29, 2024, post by Ato Henok Assefa 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 owned by the new ownership of Ethiopia Investment Holdings (EIH).
- Closing the year, on December 5, 2024, the Telegram channel “Bitcoin” publishes that 2.5% of global Bitcoin hashrate now comes from Ethiopia and that this number is about to double next year.
Ethiopia’s next goal, if it wants to have the support of the different market players and the people 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 industry. Since the industry is energy sensitive, government offices should focus on electricity production and distribution, stability, immutability of terms of commercial contracts, 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, rack up sats and have a lovely new year!
This is a guest post by Kal Kassa. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
