Ethiopia’s state-owned power manufacturer, together with its population of 126 million, welcomed the bitcoin mining market in 2024 by providing an appealing electrical power rate of USD 3.2 cents per kilowatt-hour (KWh). In the preceding year, Ethiopian Electric Power (EEP) created USD 55 million in income from bitcoin miners and tasks a profits boost to USD 123 million for the approaching year.
As we look towards 2025, it is sensible to acknowledge the noteworthy advancements within Ethiopia throughout 2024. These occasions might act as a design for other energy-rich countries, regardless of size or historic unwillingness relating to financial development, as they venture to engage in this growing sector and improve the bitcoin network.
First Quarter
- On December 13, 2023, the Financial Accounting Standards Board (FASB) provided an Accounting Standards Update dealing with the accounting and disclosure of “crypto” properties. The Google Developers Group Addis (GDG Addis) hosted Kal Kassa of BitcoinBirr and Dr. Nemo Semret of QRB Labs at DevFest’23.
- RT reported news of Russian financiers developing bitcoin mining operations in Ethiopia, while Shega highlighted QRB Labs along with a Bloomberg short article talking about Chinese financial investments in the bitcoin mining sector.
- On February 12, 2024, BBC News Day Live included an interview with Kal Kassa relating to bitcoin mining in Ethiopia. Subsequently, on February 21, 2024, Addis Standard reported that EEP made USD 2 million from bitcoin miners, a figure anticipated to grow considerably throughout the year.
- Following the preliminary favorable signs for the bitcoin mining market, Bitcoin Magazine released “5 Ways Bitcoin Mining Benefits Ethiopia,” The Economist provided “Why Africa is Crypto’s Next Frontier,” and Addis Standard revealed “From Shadows to Spotlight: Why Ethiopia Became the Latest Scene for Cryptocurrency Rush.” Additionally, CNBC’s MacKenzie Sigalos checked out Addis Ababa to explore this emerging market.
Second Quarter
- Dr. Nemo Semret of QRB Labs released an analysis entitled “Bitcoin Mining in Ethiopia: The Good, the Bad, and the Ugly,” ahead of his interviews with Hashrate Up Podcast and Gugut Podcast, talking about experiences in center advancement and current advancements in the energy sector.
- On May 3, 2024, Bloomberg’s Next Africa Podcast included host Jennifer Zabasajja speaking with press reporter Fasika Tadesse in a sector entitled “Ethiopia: An African Paradise For Crypto Miners?”
- On May 23, 2024, Addis Standard released income figures showing that EEP had actually made USD 10.1 million from bitcoin mining.
Third Quarter
- Blink launched a short article entitled “Bitcoin Mining in Africa: All Roads Lead to Ethiopia.”
- On August 25, 2024, Addis Standard revealed that EEP’s income from bitcoin miners had actually reached USD 27 million.
- The Prime Minister of Ethiopia, Abiy Ahmed, presented the Private Key Infrastructure (PKI) effort in partnership with the Information Network Security Administration (INSA) to help regional entities with cryptographic messaging and private-key matters.
- BitCluster shared photographic proof of its centers in Ethiopia following the implementation of 12,000 bitcoin mining makers. Moreover, eCrypto GitHub released an Amharic translation of the bitcoin whitepaper throughout the 3rd quarter.
Fourth Quarter
- DINK TELEVISION and Genet Shiberu performed an interview with West Data Group in Bole Lemi, providing a trip of a functional 30 MW bitcoin mining center.
- Ethan Vera of Luxor and Kal Kassa of BitcoinBirr took part in The Mining Pod with Will Foxley to talk about Ethiopia’s growing bitcoin mining market.
- During the 4th quarter, it was exposed that BitFuFu (NASDAQ: FUFU) prepares to obtain an 80-MW bitcoin mining center in Ethiopia. Shortly afterwards, Morningstar’s Newswire revealed that BIT Mining Limited (NYSE: BTCM) finished the initial stage of its acquisition in Ethiopia, that includes USD 2.265 million in money and USD 12.015 million in shares.
- On October 3, 2024, the Green Africa Mining Alliance (GAMA) hosted the Africa Bitcoin Mining Summit (ABMS ’24) at Kuriftu Resort in Entoto Park, Addis Ababa.
- On November 4, 2024, Fred Harter of The Africa Report reported that EEP’s income from bitcoin miners had actually reached USD 55 million, with projections for next year predicting a significant boost to USD 123 million.
- The Bitcoin Summit ’24 was assembled by BitcoinBirr at the Sheraton Hotel in Addis Ababa on November 5, 2024, where West Data Group revealed the beginning of a 20 MW center in Wolaita Sodo.
- Business reporter Charles Gitonga of the BBC Africa talked to Kal Kassa for the Focus on Africa Podcast, entitled “Why is Ethiopia a Major Hub for Bitcoin Mining?” Additionally, Addis Insight released a short article entitled “From Hydroelectric Power to Bitcoin: Ethiopia’s Rise as a Mining Hub.”
- On November 29, 2024, Ato Henok Assefa articulated how bitcoin mining can support universal electrification in Africa. In the very same week, he signed up with the board of the state-owned Commercial Bank of Ethiopia (CBE), and it was reported that EEP would shift to the brand-new ownership of the Ethiopian Investment Holdings (EIH).
- Concluding the year, on December 5, 2024, the “Bitcoin” Telegram channel reported that 2.5% of the international Bitcoin hashrate is now originated from Ethiopia, with forecasts showing this figure might double in the coming year.
The next goal for Ethiopia, contingent upon assistance from different market stakeholders, will be to contribute 1 GW of energy to the Bitcoin network.
The future trajectory of bitcoin mining in Ethiopia is reliant on the federal government’s technique to the market. Given the market’s level of sensitivity to energy, federal government firms need to focus on electrical power production, circulation, stability, the immutability of industrial agreement terms, transparent customizeds treatments, and clear tax policies. The author’s partnership with renowned bitcoiners around the world cultivates optimism relating to the accomplishment of these goals. It is suggested to preserve humbleness, build up bitcoin, and accept the approaching year with positivity.
This short article is a visitor contribution from Kal Kassa. The views revealed herein are exclusively those of the author and do not always show the point of views of BTC Inc or Bitcoin Magazine.
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