Ethiopia is leveraging its cheap electricity, especially the hydropower from the Grand Ethiopian Renaissance Dam (GERD), to attract numerous companies for Bitcoin mining. The country's power company currently derives nearly 18% of its revenue from Bitcoin mining, attracting over $1 billion in investment, which exceeds the profit from exporting electricity to neighboring countries. (Background: Is Ethiopia a new paradise for Bitcoin mining? The government offers cheap hydropower, and 21 Chinese mining companies have already signed agreements to settle here.) (Additional context: Ethiopia has become a new holy land for mining, with a comprehensive analysis of the tax mechanism for mining companies.) After China imposed a strict ban on cryptocurrency mining in May 2021, the international mining landscape underwent a significant reshuffle, with many Chinese miners relocating their operations to Kazakhstan, Russia, and other regions with cheap electricity. However, due to Kazakhstan's recent imposition of heavy taxes on cryptocurrency mining, up to 10 times, and Russia's warnings from President Putin about the excessive electricity consumption of mining, recently announcing that 10 regions will ban mining starting next year until 2031, the tightening regulations have reduced the attractiveness for some miners. In contrast, Ethiopia, a country in East Africa with some of the lowest electricity costs globally, is becoming a new holy land for mining due to its affordable hydropower and the government's open stance towards Bitcoin mining. Bitcoin mining service company Luxor Technologies estimates that Ethiopia has become one of the largest recipients of Bitcoin mining machines in the world this year. The Ethiopian Electric Power Corporation derives 18% of its revenue from Bitcoin mining. According to Crypto News, Ethiopia is attracting numerous companies to undertake Bitcoin mining using its vast hydropower resources, especially the hydropower from the Grand Ethiopian Renaissance Dam (GERD). The Ethiopian government has reached agreements with 25 BTC mining companies (most of which are Chinese miners) to convert the country's idle energy into digital gold. Currently, the Ethiopian Electric Power Corporation (EEP) has nearly 18% of its revenue from Bitcoin mining, attracting over $1 billion in investment, surpassing the profits from exporting electricity to neighboring countries. Ethiopia has become a new holy land for cryptocurrency mining. The main reason Ethiopia is favored by cryptocurrency mining companies is its low electricity prices, currently about 3.2 cents per kilowatt-hour, which is one of the most competitive electricity prices globally, attracting a large number of miners seeking to increase profits through lower costs. Furthermore, since its electricity mainly comes from renewable sources such as hydropower, it helps alleviate criticisms about the excessive use of non-renewable energy in Bitcoin mining. Additionally, the local government's openness towards cryptocurrency mining is another significant reason. Since 2022, the Ethiopian government has begun to allow cryptocurrency mining activities, although the country still prohibits cryptocurrency trading. This contradictory policy reflects Ethiopia's desire for foreign investment to some extent. Furthermore, the capital city Addis Ababa is at an altitude of 2,400 meters, with temperatures around 9-22 degrees Celsius, making the cool climate suitable for mining operations. Bitcoin mining experts have stated that these characteristics make Ethiopia a potential competitor to Texas in the United States. However, foreign media have pointed out the risks of Ethiopia using hydropower extensively for mining, as the country still faces the reality of nearly half its population lacking electricity, making the use of power for mining a sensitive topic. Nonetheless, for a country desperately in need of foreign exchange income, the significant foreign exchange earnings from Bitcoin mining present an attractive incentive. Further reading: Bitcoin hash rate plummets by 25%! Texas mining pools shut down due to 'cold wave power restrictions'. Related reports: Paraguay plans to lift the 'Bitcoin mining ban'! Excess hydropower can be sold to miners to fill the national treasury. Bloomberg: Iceland is a paradise for Bitcoin mining! Rich in renewable energy, electricity prices are not inflated. 'The happiest country' Bhutan secretly started Bitcoin mining! Entered mining when the value was $5,000 and continues to this day. The country mines Bitcoin) Bhutan's sovereign fund collaborates with Bitdeer, betting $500 million on cryptocurrency mining. "Ethiopian Electric Power Corporation '18% of revenue from Bitcoin mining', affordable hydropower becomes a new paradise for mining companies" was first published in BlockTempo (the most influential blockchain news media).

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