Ethiopia's Affordable Energy Empowers BIT Mining to Revitalize Bitcoin Equipment
BIT Mining is expanding its operations into Ethiopia, leveraging low electricity costs to prolong the use of bitcoin mining rigs.
Key Insights:
- BIT Mining acquired 51 megawatts and 18,000 bitcoin mining rigs in Ethiopia in early December.
- The low electricity prices in Ethiopia allow the company to utilize bitcoin mining rigs that would otherwise be deemed obsolete.
- Ethiopia contributes to 1.5% of Bitcoin's total hashrate.
Ethiopia, located in the Horn of Africa, is home to around 120 million people and has a GDP comparable to that of Ukraine and Slovakia. Despite facing a challenging political landscape, including ongoing conflicts, BIT Mining has expanded operations into the region through a $14 million acquisition deal.
According to Dr. Youwei Yang, BIT Mining’s chief economist, Ethiopia’s significantly lower electricity costs allow the company to extend the service life of its bitcoin mining equipment. In comparison, electricity expenses in Ohio are approximately 70% higher.
"The price of electricity is maybe 70% higher in Ohio than in Ethiopia, sometimes almost double," Yang shared. "Now we can just move older generation machines into Ethiopia."
This strategic move not only facilitates the mining of Bitcoin, Litecoin, and Dogecoin but enhances overall investment returns by allowing BIT Mining to keep their advanced systems running in the U.S. while repurposing older equipment in Ethiopia.
Why Ethiopia?
Ethiopia's electric infrastructure mirrors that of China’s, which means BIT Mining can efficiently relocate its operations leveraging its previous expertise. The country also benefits from a wealth of hydroelectric power, bolstered by extensive Chinese investments, including the Grand Ethiopian Renaissance Dam, which will be the largest dam in Africa upon completion.
While there are concerns regarding political instability, BIT Mining has taken precautionary steps to ensure a stable operation environment in Ethiopia, conducting extensive research and site visits before proceeding with the expansion.
Dr. Yang remains optimistic about the potential of Ethiopia and is currently exploring various investment opportunities in energy and AI infrastructure within the country.
"There are plenty of opportunities in Ethiopia," Yang remarked.
