Ethiopia's energy growth to be fueled by Bitcoin mining operations
In a surprising move, Ethiopia, known for its rich history and cultural heritage, has become a temporary hotspot for Bitcoin mining. The country's electric power company, Ethiopia Electric Power (EEP), has been selling power to Bitcoin mines as a temporary measure to raise funds for electricity distribution to citizens.
According to the CEO of Ethiopia Electric Power, Ashebir Balcha, the country's grid has reached its full capacity and cannot accommodate any additional Bitcoin mining activities. This is a concern shared by many countries, as Bitcoin mining is often associated with harmful gas emissions and overburdening power structures.
Despite these concerns, Bitcoin miners are attracted to Ethiopia due to its cheaper electricity compared to other countries that allow Bitcoin mining. The Ethiopian government sells power to Bitcoin miners at three to four cents per kilowatt hour, significantly less than the global average of 15 cents.
Last month, the EEP announced that it had reached its limit and would not be issuing more permits to data mining companies. As of August 2025, companies like Bitdeer Technologies Group and Canaan Inc. are notably active in Bitcoin mining, with operational capacity including Ethiopia. However, specific named companies with exclusive rights to operate Bitcoin mining in Ethiopia are not explicitly listed.
The Ethiopian government's decision to allow Bitcoin mining is seen as a stopgap measure, and Balcha does not expect the arrangement to be permanent. In February last year, the government signed agreements with 21 Bitcoin mining companies, which eventually rose to 25. Nearly 20 additional mining firms are on a waitlist to secure approval to tap into Ethiopia's electricity grid for Bitcoin mining purposes.
By November last year, the country had generated $55 million from these agreements and was contributing 2.5% of the global Bitcoin hash rate. This temporary boom in Bitcoin mining has provided a much-needed financial boost for the Ethiopian government, but the long-term environmental and infrastructure implications remain to be seen.
