- BIT Mining’s Ethiopia move cuts costs by 70%, extending mining rigs’ lifespans by two years.
- Ethiopia now contributes 1.5% of Bitcoin’s global hashrate, matching Norway’s output.
- Hydropower surplus in Ethiopia powers 18% of monthly electricity sales for Bitcoin mining.
BIT Mining completed a $14.28 million deal in Ethiopia. The acquisition includes a 51-megawatt facility and 18,000 mining rigs. Ethiopia now contributes 1.5% of the global Bitcoin hashrate, matching Norway’s output.
Two-Phase Acquisition Process
BIT Mining began its Ethiopian expansion in December 2024. The deal included a 35-megawatt operational crypto-mining center. The second phase, completed in January, secured additional facilities and equipment. The company used cash to pay $2.265 million and also used Class A shares with $12.015 million. Every share was issued at $0.00005.
The company chose to acquire existing facilities instead of building new ones. This decision helped speed up the expansion process. All mining rigs were transferred to Ethiopia during the first phase. Older facilities were upgraded to support efficient operations.
Cost Efficiency in Ethiopia
Ethiopia’s electricity costs are 70% lower than Ohio’s rates. This low cost allows more efficient Bitcoin mining. Dr. Youwei Yang, BIT Mining’s chief economist, explained the move reduces operational costs. Older mining rigs will also have extended lifespans in Ethiopia.
In the U.S., older mining machines often became obsolete after two years. Ethiopia’s low costs provide better economic returns for these machines. BIT Mining’s new strategy sends advanced rigs to the U.S. while recycling older ones in Ethiopia.
Leveraging Local Hydropower
Ethiopia’s surplus hydropower resources attract cryptocurrency miners. Investments in dams have created ample electricity for industrial use. The Grand Ethiopian Renaissance Dam contributes to the energy surplus.
Bitcoin mining now accounts for 18% of Ethiopia’s monthly electricity sales. BIT Mining benefits from this surplus to run its operations. The firm also reused equipment initially deployed in China before the Bitcoin mining ban.
BIT Mining’s expansion in Ethiopia demonstrates strategic planning. The company is reducing costs and maximizing resource efficiency. These measures ensure sustainable operations in a competitive market.
Challenges in Ethiopia
BIT Mining faces challenges despite cost advantages. Political instability in Ethiopia complicates operations. Employees prefer safer countries, making relocation difficult.
Currently, 33% of BIT Mining’s Ethiopian workforce is foreign. The company plans to hire more local workers over time. Yang assured that BIT Mining studied Ethiopia’s stability before finalizing its investment.
BIT Mining’s move reflects strategic thinking in cryptocurrency mining. Ethiopia offers cost advantages and resource availability. The company’s expansion strengthens its competitive position in the global Bitcoin market.
