According to CoinDesk, Chinese Bitcoin miner BIT Mining has closed a $14 million deal to buy a 51-megawatt Bitcoin mining facility in Ethiopia, along with almost 18,000 mining machines.
The acquisition places Ethiopia as an emerging destination for cryptocurrency mining, leveraging its cheap electricity and rich hydropower resources.
The plus for BIT Mining is that the electricity prices in Ethiopia are about 70% less as compared to those in the United States. Some of the older mining equipment already phased out in the U.S. will be moved to the Ethiopian facility. That would extend the life of the machines by around two years and make for a cost-effective model that could attract more investments.
Rich hydropower resources, especially from projects like the Grand Ethiopian Renaissance Dam, make up the mainstay of support for the cryptocurrency mining industry in Ethiopia. These energy resources, put together with government support, make BIT Mining competitive in the region.
Currently, the country contributes 1.5% to the computing power of the global Bitcoin network, a similar percentage as Norway. Bitcoin miner BIT Mining plans to expand its operations in the country as it explores other investment opportunities in energy infrastructure, AI data centres, and more Bitcoin mining.