Africa is once again emerging as a global hub for Bitcoin mining, with private and public mining activities taking place in several countries across the continent.
Groups of miners have emerged, looking to take advantage of the energy potential in the resource-rich African countries.
Below we take a look at some of the leading Bitcoin mining initiatives across the continent:
Ethiopia
Ethiopia has rapidly become a major player in Bitcoin mining, now contributing 2.5% of the global hash rate.
The country’s emergence as a Bitcoin mining hub comes in the wake of China’s 2021 ban on Bitcoin mining, which led many Chinese miners to relocate. Companies such as Bitmain-backed, BitFuFu, and BIT Mining have established operations in Ethiopia, drawn by its plentiful hydropower and surplus renewable energy.
Other operators in the country include local group QRB Labs, and Hong Kong-based West Point Data which recently began construction of a 20MW Bitcoin mining facility in Southern Ethiopia.
The Ethiopian government has actively backed the industry, earning over $55 million in revenue over the past 10 months through agreements with Bitcoin mining companies.
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
Kenya
Like Ethiopia, Kenya generates most of its electricity from renewable sources, including notably hydro and geothermal, a factor which makes it interesting to bitcoin miners such as Marathon Digital (MARA) which recently signed a deal with the government.
#BITCOIN | Marathon Digital to Invest $80 Million to Tap Kenya’s Green Energy Resources for Bitcoin Mining
Marathon Digital’s deal involves not only the use of untapped energy for mining, but also the joint development of technology projects that could benefit the country’s… pic.twitter.com/UAfkkczY8m
— BitKE (@BitcoinKE) May 28, 2024
The country is also home to Gridless, which is creating hydroelectric mini-grids in rural parts, and using the excess to mine bitcoin.
Established in 2022, Gridless collaborates with HydroBox, an African hydroelectric power company, to operate small-scale, off-grid Bitcoin mining sites in Kenya and three other countries.
In Kenya, Gridless utilizes surplus hydroelectric power from rural mini-grids that would otherwise go to waste, enabling power operators to monetize excess energy. This approach, similar to other projects in Zambia, Malawi, and Nigeria, allows operators to expand their generation capacity and transmission infrastructure.
In late 2022, Gridless helped launch the Green Africa Mining Alliance (GAMA).
[WATCH] Introducing The Green Africa Mining Alliance of Africa (GAMA)
“We started mining and realized there are certainly other people who mine in Africa. We found a few other companies. There are now 5 members.” – @whiteafrican https://t.co/alwDCu5x7z @GAMA_alliance @jack
— BitKE (@BitcoinKE) December 8, 2022
Currently, the association is composed of the following teams:
Trojan Mining (Nigeria)
Ethiopia (QRB Labs)
Sukuma Ventures (Kenya)
BigBlock Data Center (Congo)
Quantum Hash Ventures (Zambia)
Similar to Ethiopia, the government in Kenya has helped to draw Bitcoin miners to operate in the country. In 2022, the country’s largest electricity provider extended an open invitation to Bitcoin miners to take advantage of its plentiful geothermal energy.
KenGen, Kenya’s Largest State Energy Company, to Supply Surplus Clean Energy for Bitcoin Mining https://t.co/4QYqoz3ZND
— Theo (@Theo_mwangi) June 2, 2022
How You Can Get Involved
Bitcoin mining has the potential to be a profitable venture, but it is typically not viable for individual investors. The significant computing power needed results in high upfront and ongoing costs, which often exceed the rewards earned from mining.
Moreover, for those willing to start even a small operation, the complexity and lack of knowledge can be daunting.
GAMA ASIC SEED Program
The Green frican Mining Alliance (GAMA) has established the GAMA ASIC SEED Program, designed to help those interested in both small and large-scale Bitcoin mining to start out.
GAMA seeks to help with the knowledge of the suppliers necessary to get started, understanding of the laws in their own country, and possible sources of energy to put their mining operations to work on.
GAMA seeks to solve this by creating a central point for people to come, join, and find out about what it takes to become active in this industry.
Through the seed program, which can be applied here, interested parties are provided with ASIC miners at a ‘heavily discounted price.’
Cloud Mining
Cloud mining platforms, which have emerged in recent years, aim to provide a convenient way to mine cryptocurrencies without technical expertise or large equipment investments.
Through cloud mining, individuals can mine cryptocurrencies, like Bitcoin, without the need to own or manage mining hardware. Instead, users pay to rent mining power from a company that owns and operates the necessary equipment and processes.
When the rented mining hardware successfully mines a block, the rewards are distributed between the users and the company. This approach eliminates the need for individuals to set up their own physical mining hardware, secure a high-speed internet connection, manage electricity requirements, and handle hardware maintenance.
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