ADDIS ABABA, Ethiopia — In a year marked by global economic uncertainty, Ethiopia has quietly emerged as a lightning rod for innovation in the cryptocurrency world. Home to more than 126 million people and abundant hydroelectric resources, the East African nation has welcomed the bitcoin mining industry with an electricity rate of just 3.2 cents per kilowatt-hour. Ethiopian Electric Power (EEP), the state-owned power producer, earned an estimated $55 million from bitcoin miners in 2024 alone—and projects a jump to $123 million next year.
“Within the year we will see this sales figure grow significant multiples,” Addis Standard reported in February, reflecting surging interest from both local and international operators.
First Quarter: A Ripple of New Ideas
The seeds of Ethiopia’s crypto boom were sown late in 2023 when the Financial Accounting Standards Board (FASB) updated guidelines to clarify “crypto” asset accounting. In Addis Ababa, Google Developers Group Addis (GDG Addis) invited industry figures like Kal Kassa of BitcoinBirr and Dr. Nemo Semret of QRB Labs to DevFest’23, signposting a tech community eager to explore bitcoin’s potential. Around the same time, Russian and Chinese investors caught wind of Ethiopia’s low energy rates, setting up initial mining facilities.
Momentum built quickly: By February 21, BBC News Day Live had interviewed Kassa on bitcoin’s foothold in Ethiopia, and the Ethiopian Electric Power confirmed $2 million in revenue from miners. Various publications—Bitcoin Magazine, The Economist, and Addis Standard—spotlighted how a novel blend of hydroelectric power and crypto mining could spur economic growth.
Second Quarter: Deeper Investment and Rising Revenues
In May, Dr. Semret released a white paper, Bitcoin Mining in Ethiopia; the Good, the Bad and the Ugly, outlining the opportunities and challenges of this burgeoning sector. Soon after, Bloomberg’s Next Africa podcast aired “Ethiopia: An African Paradise for Crypto Miners?” featuring reporter Fasika Tadesse. By the end of May, EEP disclosed a leap to $10.1 million from bitcoin-related revenue, punctuating the industry’s rapid expansion.
Third Quarter: Government Embraces Digital Infrastructure
By August, revenues ballooned to $27 million. Prime Minister Abiy Ahmed announced a Private Key Infrastructure (PKI) initiative with the Information Network Security Administration (INSA), aiming to secure local digital communications. This nod to cryptography signaled a growing national commitment to harness blockchain and related technologies. Organizations like BitCluster unveiled large-scale deployments of up to 12,000 bitcoin mining machines. Meanwhile, local developers released an Amharic translation of the bitcoin whitepaper on the eCrypto GitHub page—underscoring Ethiopia’s grassroots enthusiasm for crypto literacy.
Fourth Quarter: A Global Player with Lofty Goals
The final months of 2024 cemented Ethiopia’s position as a bitcoin mining hub. DINK TV, Genet Shiberu, and The Mining Pod with Will Foxley showcased fully operational 30-MW facilities. Multi-million-dollar acquisitions by BitFuFu (NASDAQ: FUFU) and BIT Mining Limited (NYSE: BTCM) solidified global confidence in Ethiopia’s mining future. In November, EEP reported $55 million in miner-related revenue and projected growth to $123 million for 2025. According to the “Bitcoin” Telegram channel, Ethiopia now accounts for 2.5% of the global bitcoin hashrate.
Looking Ahead
The country’s next ambition is even bolder: contributing 1 gigawatt of energy to the bitcoin network. Yet much hinges on government policy—particularly around reliable electricity production, stable contract terms, customs procedures, and transparent tax laws. As Ethiopia continues to shape its regulatory environment, observers ask: Will its trajectory serve as a blueprint for other energy-rich nations seeking to enter the crypto arena? And can Ethiopia maintain the delicate balance between energy demands and sustainable development?
In the meantime, global bitcoin miners and Ethiopian authorities alike seem unified in optimism. “Stay humble, stack sats and have a beautiful new year,” wrote one local crypto enthusiast, capturing a sentiment that resonates with a nation on the cusp of a digital transformation.
