German Bitcoin mining company, TeraHash, is gearing up to launch its first facility in Ethiopia, according to local reports.
The company is currently raising $5 million to establish a 10-megawatt (MW) site near Addis Ababa, Ethiopia, with operations expected to commence in the next two to three months capitalizing on the East African nation’s emergence as a major Bitcoin mining hub.
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Developed in collaboration with two local partners, the facility marks Terahash’s entry into Ethiopia’s emerging Bitcoin mining sector. If the initial phase goes smoothly, the company aims to scale up operations to 60 megawatts, potentially requiring an additional investment of $40 to $60 million.
“This initial 10 MW facility represents a cautious but significant entry point. Hardware is en route, and operations are expected next quarter, pending smooth logistics.” Says Fabian Weber, Terahash’s Head of Hashrate, a role that involves leading initiatives in Bitcoin mining and energy infrastructure.
“Success could justify expansion, necessitating substantial further investment.”
TeraHash was established as a spin-off of the Klager Group, a 75-year-old family-owned German manufacturing firm. Its approach to Bitcoin mining blends renewable energy with structured investment strategies, a direction shaped by Klager’s deep-rooted expertise in industrial efficiency and energy management.
According to Fabian, in Europe, the company emphasizes ‘integrated mining solutions,’ optimizing existing energy infrastructures by capitalizing on the interruptible nature and heat output of Bitcoin mining. In high-cost electricity markets like Germany, mining only becomes viable when combined with supplementary revenue streams such as heat sales or grid demand response programs.
Conversely, Terahash’s ‘managed mining’ division focuses on regions with more affordable electricity, where mining can function as a standalone investment – including countries like the United States, Finland, and now Ethiopia.
The company’s move into Ethiopia builds on a successful pilot project launched in late 2023. According to the company’s Head of Hashrate, the Ethiopian facility is being developed in partnership with two locally licensed firms, which handle compliance, permitting, and day-to-day operations on Terahash’s behalf.
Terahash won’t be navigating Ethiopia’s emerging crypto regulatory landscape alone but will operate through a licensed local subsidiary. Fabian explained that this structure helps ensure compliance, although he acknowledged that some regulatory uncertainties still remain.
“If you have your paperwork correctly in Ethiopia, you’re on the safe side.” Fabian highlighted.
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However, he also flagged emerging risks, including new taxes like a 15.5% VAT on mining and uncertainty around energy pricing and imports.
“We’re entering with our eyes wide open,” he said.
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