Opportunities from Cheap Electricity Costs in Ethiopia



BIT Mining has invested $14 million to expand its operations in Ethiopia, including 51 MW of power and nearly 18,000 Bitcoin mining machines. This is an important step in the strategy of reusing old mining machines, which are no longer effective in the US due to high electricity costs.



According to Dr. Youwei Yang, chief economist of BIT Mining, electricity costs in Ohio are 70% or more higher, causing older mining machines to quickly become obsolete. Meanwhile, moving these machines to Ethiopia can extend their lifespan by 2 years, optimizing profits.



Ethiopia: The Ideal Destination For Bitcoin Mining



Ethiopia has abundant hydropower resources thanks to Chinese investments, including the Grand Ethiopian Renaissance Dam (GERD) project, which promises to provide over 5,000 MW of electricity when completed. This, combined with support from the Ethiopian government, has helped the country account for 1.5% of the global $BTC hashrate, on par with Norway.



BIT Mining also utilizes the same electrical standards as China, reducing deployment costs and improving operational efficiency.



Challenges From Internal Conflict



Despite Ethiopia's great potential, political instability is a major obstacle. The country has just gone through a bloody civil war, and some areas are still under the control of anti-government forces.



#BITMINING carefully researched and evaluated before deciding to invest. To reduce risk, the company chose to buy existing facilities instead of building from scratch.



A Promising Future



Going beyond Bitcoin mining, BIT Mining is looking at new projects in Ethiopia, such as developing energy infrastructure, AI data centers, and expanding its cryptocurrency mining facilities.



“We have the power, the people, and the deployment capabilities,” said Dr. Yang. “The costs in Ethiopia are much lower than in the United States, which makes it easier to conduct pilot experiments.”



Conclusion: Lessons From the Reuse Strategy



BIT Mining is turning Ethiopia into a promising Bitcoin mining hub, leveraging low costs to maximize the value of old mining equipment. It is a testament to how crypto companies can exploit opportunities in emerging markets, despite political and social challenges.



💡 Investor Tip: Ethiopia Could Be a New “Gold Mine” Not Only for Crypto, But for Other High-Tech Sectors as Well. 🌍