Bit Mining Limited (NYSE: BTCM), a leading technology-driven crypto mining company, announces a landmark acquisition to expand into Ethiopia, one of the world’s emerging Bitcoin mining hubs . The company has acquired a 51 MW cryptocurrency mining data center and 17,869 high-performance Bitcoin mining machines in Ethiopia for a total of USD 14.28 million, marking a significant step in its global development strategy.
The transaction will be executed in two phases, with BIT Mining acquiring a 35-megawatt operational data center and all mining machines in the first phase, which is expected to close within the next few days. The second phase, which involves transferring additional data centers after construction is complete, is expected to follow shortly thereafter. This acquisition not only strengthens BIT Mining's operational capabilities, but also positions it to take advantage of Ethiopia's rapidly growing Bitcoin mining market.
Ethiopia: Fast-growing Bitcoin mining hub
Ethiopia has quickly emerged as a significant player in the global Bitcoin mining scene, powered by its abundant and affordable energy resources, especially hydropower. In the past 10 months, the country has generated a staggering $55 million in revenue from Bitcoin mining, attracting the attention of international mining companies, especially those relocating from China. Due to competitive energy prices and the commitment of Ethiopian Electric Power (EEP) to provide 600 MW of electricity to mining operations, Ethiopia currently controls 2.25% of the global Bitcoin mining market.
One of the country's key advantages is its renewable energy resources, with more than 92% of Ethiopia's electricity generated through hydropower. This includes energy from the Grand Ethiopian Renaissance Dam (GERD), a $6 billion project that will harness the power of the Nile to produce 6 gigawatts of electricity. Ethiopia's electricity costs are a big draw for Bitcoin miners, said Cal Kassa, founder and educator at Addis Ababa's Bitcoin Building and an advisor to West Data Group. “At just 3.2 cents per kilowatt hour, our electricity is much cheaper than in many other parts of the world,” Kalu explained in a recent interview with BBC News Africa.
Growing digital infrastructure investment market
Ethiopia's rise as a global mining hub is further supported by significant investments in digital infrastructure. In February 2024, Ethiopian Investment Holdings announced a preliminary agreement with Hong Kong's West Data Group to invest $250 million to strengthen the country's digital capacity. This agreement is expected to play a key role in strengthening Ethiopia's mining infrastructure and solidifying its position as a major player in the Bitcoin mining industry.
Despite warnings from regulators, such as Ethiopia banning crypto trading, the government has been active in developing a regulatory framework for crypto mining, which will discourage foreign investment and mining operations. This has led to a rapid increase. Over the past two years, Ethiopia has seen a significant increase in the number of crypto mining companies, and the trend shows no signs of slowing down.
Impact on the Ethiopian economy
The influx of Bitcoin miners has had a significant positive impact on the Ethiopian economy. Kalu Kassa said there are currently 20 registered mining companies operating in the country, of which 11 are active and generating significant revenue. Approximately 80% of these companies are Chinese, and the rest are from Russia and the United States. This increased presence is expected to result in even higher revenues for Ethiopian Electric Power (EEP), with revenue from Bitcoin mining expected to increase from $55 million this year to $123 million in 2025. Masu.
These revenues will not only benefit the national power company, but will also contribute to the further development of Ethiopia's electricity grid, helping to expand electricity access to the approximately 50% of the population that currently lacks reliable electricity. Masu. Mr. Cull highlighted the potential of Bitcoin mining to fund much-needed infrastructure improvements and provided a clear example of how the crypto industry can help drive broader economic development. Ta.
Strategic acquisition of BIT Mining
For BIT Mining, this acquisition marks a pivotal moment in its strategic global expansion. BIT Mining CEO Xianfeng Yang commented: With our expanded market presence and strong operational capabilities, we are well equipped to further strengthen our competitiveness, strengthen our profitability and financial position, and pave the way for long-term, sustainable growth. We are prepared. ”
The acquisition of data centers and mining machines in Ethiopia will allow BIT Mining to expand its operations by taking advantage of the country's affordable electricity, renewable energy sources and growing infrastructure. This acquisition is consistent with BIT Mining's vision to focus on self-operated mining and data center operations, positioning the company to take advantage of the rapidly increasing demand for crypto mining resources around the world. .
Ethiopia’s bright future in Bitcoin mining
Ethiopia's position as a competitive player in the Bitcoin mining market is expected to continue to grow. The combination of low electricity prices, abundant renewable energy and strategic location makes the country an attractive destination for international mining companies. BIT Mining's acquisition of Ethiopian data centers and mining machines not only proves the attractiveness of the country, but also highlights Ethiopia's potential to continue to play a central role in the global Bitcoin mining industry.
As the country's mining sector expands, it will continue to provide opportunities for economic growth, infrastructure development, and technological advancement. For BIT Mining, this acquisition is an important step in securing its position at the forefront of the global crypto mining competition, especially as the market evolves and energy costs continue to rise in other regions.
