Ethiopia Cuts Bitcoin Mining Power Amid Drought-Fueled Hydroelectric Crisis
Ethiopia has drastically reduced electricity supply to Bitcoin mining companies by about 75%, citing drought-stricken hydroelectric reservoirs that are straining the national power system.
The move marks a significant setback for Ethiopia's rapidly expanding cryptocurrency-mining industry, which had emerged as an attractive destination due to its abundant and relatively inexpensive hydropower. The country has become one of Africa's leading Bitcoin-mining hubs, attracting Chinese and other international mining companies with electricity costs of around 3.2 cents per kilowatt-hour.
The industry has grown rapidly in recent years, consuming nearly one-third of the country's total electricity production. Mining a single Bitcoin in Ethiopia requires approximately 6.4 million kilowatt-hours of electricity, which is roughly equivalent to the annual electricity consumption of 14,950 average Ethiopian households.