BIT Mining, a Chinese Bitcoin mining company, completed a $14.28M deal with Ethiopia to acquire a 51-megawatt facility and 18,000 rigs. This event puts Ethiopia on par with Norway in terms of Bitcoin hashrate contribution.
BIT Mining's Expansion in Ethiopia
BIT Mining announced its plans to expand into Ethiopia towards the end of last year. The deal was completed in a two-phased transaction finalized on January 7th. During the first phase, BIT Mining acquired a 35MW fully operational and electrified data center, where all Bitcoin mining machines were transferred.
Efficiency and Economic Benefits
Dr. Youwei Yang, chief economist at BIT Mining, stated that Ethiopia’s ultra-low electricity costs offer a unique opportunity since they are nearly 70% cheaper than in Ohio. This allows the company to utilize older mining rigs, which is not feasible in the U.S. due to high competition. The older rigs can now be sent to Ethiopia, extending their useful life.
Ethiopia's Power Attractiveness
With abundant hydroelectric power, Ethiopia has become attractive to BIT Mining. The expertise of engineering teams and the deployment of former Chinese equipment significantly cut costs. Nearly 18% of Ethiopia’s electric power sales go to Bitcoin mining.
BIT Mining's expansion into Ethiopia allows the company to efficiently use older rigs and reduce costs despite increasing instability in the region.
