Ethiopia Cracks Down on Bitcoin Mining Amid Electricity Crunch
Bitcoin mining operations in Ethiopia have been severely impacted due to reduced electricity deliveries. According to Ethiopian Electric Power (EEP), they have cut off 75% of contracted power, leaving miners with just 23% of their expected supply.
The decision was made after El Niño caused a 20% drop in reservoir inflows, affecting the country's hydropower generation. EEP CEO Ashebir Balcha stated that if reservoir levels don't improve, mining companies could lose even more electricity and power exports to neighboring countries may face restrictions.
Bitcoin miners had become one of EEP's biggest customers, consuming roughly a third of Ethiopia's electricity and generating about 35% of its revenue. Miners paid in foreign currency for electricity that was as cheap as 3.2 cents per kilowatt-hour.