Ethiopia is stepping into the global spotlight for Bitcoin mining, becoming the first African country to support large-scale, state-backed operations. With the government signing agreements with 21 mining firms in 2024 – including UMINERS — the country is positioning itself as a major player in the future of crypto infrastructure.
Hydropower Fuels Mining Ambitions
A critical driver behind Ethiopia’s rise in the global Bitcoin mining scene is its abundant hydroelectric energy. Thanks to investments like the Grand Ethiopian Renaissance Dam on the Blue Nile, the country now enjoys a significant energy surplus.
“Ethiopia used to have major challenges with its power grid,” said Philip, Head of Strategy and Partnerships at UMINERS, during a recent AMA.
“That’s changed dramatically with the Renaissance Dam. The energy surplus has opened the door to Bitcoin mining at scale.”
In 2024 alone, Ethiopia contributed 2.5% of the global Bitcoin hashrate, a remarkable achievement that reflects both infrastructure improvements and strategic planning.
LIST | A Look At 10 Key Milestones Behind Ethiopia’s Rise As a Bitcoin Mining Haven in 2024
In this article, we explore the key milestones that propelled #Ethiopia into the ranks of global Bitcoin mining powerhouseshttps://t.co/EtQcpEBTBr @KalKassa @qrb_labs @WestDataGroup pic.twitter.com/tCxj4Wye4f
— BitKE (@BitcoinKE) January 3, 2025
Mining as a Gateway to Economic Growth
Although crypto trading remains illegal in Ethiopia, the government’s embrace of mining suggests a broader move toward economic liberalization and foreign investment. According to Philip, one of the primary objectives is to generate USD reserves by attracting miners and data centers that pay for electricity in U.S. dollars.
“This isn’t just about crypto,” Philip noted. “It’s about building up a USD surplus that Ethiopia can use in international trade.”
BITCOIN | #Ethiopia Government Generates $55 Million from #Bitcoin Mining Operations Over the Past 10 Months
Ethiopia’s current mining capacity translates to a significant 2.25% of the total Bitcoin hash rate.https://t.co/tzRHVlkhLz pic.twitter.com/NBvvfC32UZ
— BitKE (@BitcoinKE) November 7, 2024
UMINERS’ Local Investment and Talent Development
UMINERS isn’t just setting up shop – it’s investing in Ethiopia’s future workforce. The company plans to hire locally and collaborate with universities to create training programs tailored to the crypto and data center industries.
“We want to help develop the next generation of tech talent in Ethiopia,” Philip said. “There’s a real opportunity here to create meaningful jobs and career pathways.”
Making Mining Accessible
Acknowledging the rising costs of mining – with machines now ranging between $3,000 and $10,000 — UMINERS has rolled out a zero-interest, Bitcoin-collateralized loan program aimed at small businesses.
Here’s how it works:
Clients deposit Bitcoin as collateral in a Ledger Enterprise account.
The BTC funds the purchase of mining equipment, housed in UMINERS’ data centers.
Clients repay the loan in 10% monthly installments, receiving 10% of their Bitcoin back each time.
“This model lets clients retain ownership of their Bitcoin and still access the upside of mining,” Philip explained.
Looking ahead, UMINERS plans to introduce cloud mining services for both institutional and retail clients. The company also foresees a future where governments and large enterprises dominate the mining landscape – and it’s ready to support them with turnkey solutions, from hardware to logistics.
“We’re building the infrastructure to make mining seamless for large-scale clients,” Philip said. “It’s not just about mining; it’s about creating a foundation for digital economic growth.”
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