Summary:

Africa now accounts for 3% of global Bitcoin mining hashrate, with Ethiopia leading at 2.5%.
Over $1 Billion invested in Bitcoin mining infrastructure in Ethiopia in 2024.
Ethiopia's GERD provides electricity at 3.2 cents per kilowatt-hour, enabling cost-effective mining.
$55 million earned from Bitcoin mining electricity sales, contributing 18% to Ethiopia's total revenue.
Future projections suggest Ethiopia's Bitcoin mining revenue could exceed $100 million by 2025.

Africa's Bitcoin Mining Growth

As of December 2024, Africa accounts for 3% of the global Bitcoin mining hashrate, with Ethiopia leading the charge at 2.5%, a remarkable increase from previous years, achieved entirely through renewable energy.

Ethiopia starts electricity production at Blue Nile mega-dam

The recent approval of Bitcoin mining in Ethiopia has sparked significant investment, with over $1 Billion allocated to mining infrastructure in 2024. This initiative has attracted interest from other African nations, including Kenya, which is also exploring Bitcoin mining to stimulate economic growth and enhance renewable energy projects.

Ethiopia's Dominance in Bitcoin Mining

Ethiopia's Grand Ethiopian Renaissance Dam (GERD), now operational, is a key player in this surge, providing electricity at just 3.2 cents per kilowatt-hour, making it one of the cheapest sources globally. Local miners like Gridless are driving innovations in green Bitcoin mining, leveraging hydro and biomass energy.

Financial Impact on Ethiopia

In 2024, Ethiopia earned over $55 million from Bitcoin mining electricity sales, which constituted 18% of its total revenue. These revenues are crucial for advancing the construction of necessary transmission lines, thereby enhancing electricity delivery across the country.

Future Outlook for Bitcoin Mining in Africa

Looking ahead to 2025, with the GERD ramping up its output, Ethiopia's earnings from Bitcoin mining could exceed $100 million. This growth is anticipated to accelerate infrastructure development, electrify rural areas, and create job opportunities.

Other nations in Africa are expected to follow suit, using Bitcoin mining as a strategic tool to address energy challenges and stimulate economic development. The potential for countries like Nigeria to join the Bitcoin mining landscape through renewable resources is also on the horizon.

As the trend continues, Bitcoin mining is poised to play a significant role in Africa's energy infrastructure growth and economic empowerment.

Source: Forbes