BIT Mining Limited (NYSE: BTCM), a leading technology-driven cryptocurrency mining company, has announced a landmark acquisition aimed at expanding its operations into Ethiopia, one of the world’s emerging Bitcoin mining hubs. The company will acquire 51-megawatt crypto mining data centers and 17,869 high-performance Bitcoin mining machines in Ethiopia for a total of US$14.28 million, marking a significant step in its global development strategy.
The deal will be executed in two phases, with BIT Mining acquiring a 35-megawatt operational data center and all mining machines in the first phase, expected to close in the coming days. The second phase, which will involve the transfer of additional data centers upon completion of construction, is expected to follow shortly thereafter. This acquisition not only strengthens BIT Mining’s operational capabilities but also positions the company to take advantage of Ethiopia’s rapidly growing Bitcoin mining market.
Ethiopia: A Fast-Growing Bitcoin Mining Hub
Ethiopia has quickly emerged as a significant player in the global Bitcoin mining scene, driven by its abundant and affordable energy resources, especially hydropower. Over the past ten months, the country has generated an impressive $55 million in revenue from Bitcoin mining, drawing attention from international mining companies, particularly those relocating from China. With its competitive energy prices and a commitment from Ethiopian Electric Power (EEP) to provide 600 megawatts of electricity for mining operations, Ethiopia now commands 2.25% of the global Bitcoin mining market.
One of the country’s key advantages is its renewable energy resources, with more than 92% of Ethiopia’s electricity generated from hydroelectric power. This includes energy from the Grand Ethiopian Renaissance Dam (GERD), a $6 billion project that harnesses the Nile River’s power, producing six gigawatts of electricity. According to Kal Kassa, Founder and Educator at Bitcoin Birr in Addis Ababa and Advisor at West Data Group, Ethiopia’s electricity costs are a major draw for Bitcoin miners. “At just 3.2 cents per kilowatt-hour, our electricity is much cheaper than many other parts of the world,” Kal explained in a recent interview with BBC News Africa.
A Growing Market for Digital Infrastructure Investment
Ethiopia’s rise as a global mining hub is further supported by significant investments in digital infrastructure. In February 2024, Ethiopian Investment Holdings announced a preliminary agreement with Hong Kong’s West Data Group to invest $250 million in boosting the nation’s digital capabilities. This agreement is expected to play a critical role in enhancing Ethiopia’s mining infrastructure and solidifying its position as a key player in the Bitcoin mining industry.
Despite some regulatory caution—Ethiopia has imposed a ban on cryptocurrency trading—the government has actively worked to develop a regulatory framework for crypto mining, which has led to a surge in foreign investment and mining operations. Over the past two years, the country has seen a significant increase in the number of crypto-mining companies setting up shop in Ethiopia, a trend that shows no signs of slowing down.
Impact on the Ethiopian Economy
The influx of Bitcoin miners has had a noticeable positive impact on Ethiopia’s economy. Kal Kassa shared that there are currently 20 registered mining companies operating in the country, with 11 of them active and generating significant revenue. Approximately 80% of these companies are from China, with the remainder hailing from Russia and the United States. This growing presence is expected to result in even more substantial revenue for the Ethiopian Electric Power (EEP), with earnings from Bitcoin mining projected to rise from $55 million this year to $123 million in 2025.
These revenues not only benefit the state-owned utility but also contribute to the further development of Ethiopia’s power grid, helping to expand electricity access to the approximately 50% of the population currently lacking reliable power. Kal emphasized the potential of Bitcoin mining to fund much-needed infrastructure improvements, providing a clear example of how the cryptocurrency industry can help drive broader economic development.
BIT Mining’s Strategic Acquisition
For BIT Mining, this acquisition marks a pivotal moment in its strategic global expansion. Xianfeng Yang, CEO of BIT Mining, commented, “This transaction represents a significant milestone in advancing our global development strategy. With our expanded market presence and robust operational capabilities, we are well-equipped to further solidify our competitive edge and enhance our profitability and financial standing, paving the way for long-term, sustainable growth.”
By acquiring data centers and mining machines in Ethiopia, BIT Mining will be able to tap into the country’s affordable electricity, renewable energy sources, and growing infrastructure to scale up its operations. This acquisition aligns with BIT Mining’s vision of focusing on self-operated mining and data center operations, positioning the company to capitalize on the rapidly increasing demand for cryptocurrency mining resources worldwide.
Ethiopia’s Bright Future in Bitcoin Mining
Ethiopia’s position as a competitive player in the Bitcoin mining market is only expected to grow. The combination of low electricity costs, abundant renewable energy, and a strategic location has made the country an attractive destination for international mining companies. BIT Mining’s acquisition of data centers and mining machines in Ethiopia is not only a testament to the country’s appeal but also underscores the potential for Ethiopia to continue playing a central role in the global Bitcoin mining industry.
As the country’s mining sector expands, it will continue to provide opportunities for economic growth, infrastructure development, and technological advancement. For BIT Mining, this acquisition represents a crucial step in securing its place at the forefront of the global cryptocurrency mining race, particularly as the market evolves and energy costs in other regions continue to rise.
