Recounting Ethiopia’s Bitcoin Developments In 2024

Ethiopia’s state-owned power producer, and a population of 126 million Ethiopians, welcomed the bitcoin mining industry in 2024 with an attractive electricity rate of USD 3.2 cents KWh. In this past year EEP has generated USD 55 million in revenues from bitcoin miners and expects USD 123 million in the year to come.

As we look forward to 2025, let’s take time to recognize the efforts and events in Ethiopia from the year 2024. These highlights can serve as a blueprint for how other energy-potential rich nations, even those too small or timid to challenge historical assertions about money, can also join in this race for energy and add-value to the bitcoin network.

First Quarter

• December 13, 2023, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update that addresses the accounting for and disclosure of “crypto” assets. Google Developers Group Addis (GDG Addis) invited Kal Kassa of BitcoinBirr and Dr. Nemo Semret of QRB Labs to speak at DevFest’23.
• RT published news of Russian investors setting up bitcoin mining facilities in Ethiopia. Shega features QRB Labs along with a Bloomberg Article on Chinese investors also working in bitcoin mining.
• February 12, 2024, BBC News Day Live interviewed Kal Kassa about bitcoin mining in Ethiopia. Then on February 21, 2024, Addis Standard published revenue figures of USD 2 million earned by Ethiopian Electric Power (EEP) from bitcoin miners. Within the year we will see this sales figure grow significant multiples.
• As the first signs of return in the bitcoin mining industry were reported, within days of each other, Bitcoin Magazine published 5 Ways Bitcoin Mining Benefits Ethiopia, then The Economist published Why Africa is Crypto’s Next Frontier and finally Addis Standard published From Shadows to Spotlight: Why Ethiopia Became Latest scene for Cryptocurrency Rush. In the first quarter of this year CNBC’s MacKenzie Sigalos also visited Addis Ababa to learn about this new industry.

Second Quarter

• Dr. Nemo Semret of QRB Labs published Bitcoin Mining in Ethiopia; the good, the bad and the ugly ahead of his interview with Hashrate Up Podcast and Gugut Podcast to talk about experiences building his facility and recent developments in the energy sector.
• May 3, 2024, Bloomberg’s Next Africa Podcast host Jennifer Zabasajja spoke with reporter Fasika Tadesse in a segment titled Ethiopia: An African Paradise For Crypto Miners?
• And on May 23, 2024, Addis Standard published revenue figures of USD 10.1 million earned by Ethiopian Electric Power (EEP) from bitcoin miners.

Third Quarter

• Blink publishes Bitcoin Mining in Africa: All Roads Lead to Ethiopia.
• August 25, 2024, Addis Standard published revenue figures of USD 27 million earned by Ethiopian Electric Power (EEP) from bitcoin miners.
• The Prime Minister of Ethiopia, Abiy Ahmed announces the Private Key Infrastructure (PKI) initiative in partnership with the Information Network Security Administration (INSA) to support local offices with cryptographic messaging and private-key related issues.
• BitCluster shared photos of its facilities in Ethiopia after deploying 12,000 bitcoin mining machines. In the third quarter of 2024 we also saw the eCrypto GitHub page publish an Amharic translation of the bitcoin whitepaper.

Fourth Quarter

• DINK TV and Genet Shiberu interview West Data Group in Bole Lemi for a tour of an operational 30 MW bitcoin mining facility.
• Ethan Vera of Luxor and Kal Kassa of BitcoinBirr joined The Mining Pod with Will Foxley to talk about Ethiopia’s Bitcoin Mining Boom.
• In the fourth quarter of 2024 we also learned that BitFuFu (NASDAQ: FUFU) was to acquire a 80-MW Bitcoin mining facility in Ethiopia. A few weeks later, Morningstar’s Newswire published BIT Mining Limited (NYSE: BTCM) completed the first phase of acquisition in Ethiopia for a deal that includes USD 2.265 million in cash and USD 12.015 million in shares.
• October 3rd, 2024, the Green Africa Mining Alliance (GAMA) hosted the Africa Bitcoin Mining Summit (ABMS ‘24) at Kuriftu Resort in Entoto Park, Addis Ababa.
• November 4, 2024, Fred Harter of The Africa Report published revenue figures of USD 55 million earned by Ethiopian Electric Power (EEP) from bitcoin miners. Forecasts for next year’s revenue from bitcoin miners stands at USD 123 million.
• November 5, 2024, The Bitcoin Summit ‘24 was hosted by BitcoinBirr at Sheraton Hotel in Addis Ababa. The event’s leading sponsor, West Data Group, announced news of a 20 MW facility in Wolaita Sodo breaking ground.
• Business correspondent Charles Gitonga of the BBC Africa interviews Kal Kassa on the Focus on Africa Podcast titled Why is Ethiopia a Major Hub for Bitcoin Mining? Addis Insight shared its article on the subject titled From Hydroelectric Power to Bitcoin: Ethiopia’s Rise as a Mining Hub.
• November 29, 2024, Ato Henok Assefa published How Bitcoin Mining Can Help Achieve Universal Electrification in Africa. That same week Henok Assefa joined the board of the state-owned Commercial Bank of Ethiopia (CBE). And days later we learned that Ethiopian Electric Power (EEP) will be under the new ownership of the Ethiopian Investment Holdings (EIH).
• Closing out the year, on December 5, 2024, the “Bitcoin” Telegram channel posts that 2.5% of the global Bitcoin hashrate now comes out of Ethiopia and that this number is poised to double in the next year.

Ethiopia’s next objective, if it's to be supported by the various market actors and individuals involved, will be to contribute 1 GW of energy into the Bitcoin network.

The future of Bitcoin mining in Ethiopia depends on how the Ethiopian government will treat the industry. Since the industry is sensitive to energy, government offices should focus on electricity production, distribution, stability, immutability of commercial contract terms, clear customs procedures, and transparent tax laws. As I work with brilliant bitcoiners around the world, I am optimistic we will reach these goals. Stay humble, stack sats and have a beautiful new year!

This is a guest post by Kal Kassa. Opinions expressed are entirely their own and do not necessarily reflect those of $BTC Inc or Bitcoin Magazine.