Miners consume 30% of national electricity production
Ethiopia has become a prominent global hub for the Bitcoin network, with the revenue from the state energy provider’s Bitcoin sector expected to double in the current budget year. This topic was a highlight at the second annual Ethiopia Bitcoin Summit, held on Tuesday, September 17.
In recent years, Ethiopia has garnered significant interest from international cryptocurrency miners, resulting in a number of large companies setting up operations in the country.
Details shared at the summit revealed that nearly 30 mining companies are currently active in the sector, with an equal number seeking licenses to commence operations.
Kal Kassa, founder of BitcoinBirr—a platform focused on cryptocurrency education and awareness—and facilitator of the summit, presented important data.
He noted that Bitcoin miners now consume an estimated 30% of Ethiopia’s total electricity production, which aligns with the country’s potential to harness stranded energy.
Experts at the event highlighted that in 2024, Ethiopia accounted for about 2.5% of the global Bitcoin network’s hashrate, which is the total computational power used for mining. While this figure positions Ethiopia among the top mining nations globally, it remains below 5%. Projections, however, indicate that this could more than double within a year if current trends persist.
Kal shared these insights and referenced an independent study by Luxor, which reported that over 5% of the Bitcoin network is now secured in Ethiopia. He remarked that this rapid growth was unforeseen just two years ago, firmly establishing the country on the global crypto mining map.
Based on his estimations, Kal believes Ethiopia’s share may now lie between 7% and 10%, suggesting that the Luxor figure from a few months ago is likely outdated.
He also noted that mining activity extends beyond dedicated companies, as some of the approximately 60 data centers operating in Ethiopia are also engaged in mining.
The state-owned Ethiopian Electric Power (EEP) reported earning around $220 million last year from supplying electricity to cryptocurrency miners. Moges Mekonnen PR head of EEP told Capital that they are planning to generate revenue of $312.5 Million in the current budget year that will end in June 2026.
Kal estimates that revenue from energy sales to mining companies could reach half a billion dollars in the current budget year.
Although the government has recently stated that cryptocurrency investment is not its top priority, Kal argued that the state energy enterprise should strengthen its collaboration with miners.
He suggested this could involve partnerships in future renewable energy projects to ensure a sustainable and reliable power supply for the mining industry.
“The two parties are likely to extend their cooperation into the energy sector, aiming not just to benefit investors but also to promote the sector’s growth within the country,” he told Capital.
A key factor driving this mining boom is Ethiopia’s significantly lower electricity tariffs, which are crucial since power costs can account for up to 80% of crypto mining expenses. The BitcoinBirr team deemed the annual summit, which focused on sharing information about the sector, a considerable success
