Ethiopia has emerged as a major player in global Bitcoin mining, generating approximately $1 billion in mining profits during 2024 thanks to its innovative use of renewable hydroelectric power.
The country's success stems from the Grand Ethiopian Renaissance Dam (GERD), one of Africa's largest hydroelectric facilities. This massive infrastructure project not only powers the nation but also drives Ethiopia's state-backed cryptocurrency mining operations, which now contribute 2.25% of global Bitcoin mining capacity.
The mining venture has become a substantial revenue source, accounting for 18% of Ethiopia's annual national income. Industry experts project these earnings could reach $5.4 billion by 2027, marking a remarkable achievement for a nation where only 35% of citizens hold bank accounts.
"Ethiopia's success comes from combining cheap electricity with mid-generation mining devices that are both cost-effective and energy-efficient," explains Ethan Vera, COO of Luxor Mining. The operation primarily uses Bitmain S19J Pro and Canaan A1346 mining rigs.
Unlike many global mining operations criticized for their environmental impact, Ethiopia's Bitcoin mining leverages clean energy from GERD. With only half of the population connected to the power grid, the country channels surplus renewable energy into mining operations, creating a sustainable model for cryptocurrency production.
This achievement has sparked interest across Africa. The Democratic Republic of Congo is developing its own clean mining facility in Virunga National Park, while smaller initiatives like Gridless and Trojan Mining are advancing eco-friendly Bitcoin mining throughout the continent.
Ethiopia's approach demonstrates how governments can harness cryptocurrency mining to support infrastructure development and boost local economies while maintaining environmental responsibility. As Africa's fintech revolution continues, with companies like TymeBank and Moniepoint serving the continent's largely unbanked population, Ethiopia's mining success offers a blueprint for sustainable economic growth in the digital age.