Ethiopia Slashes Power to Bitcoin Miners Amid Drought

Ethiopia has drastically reduced electricity supply to Bitcoin miners due to a severe drought caused by El Niño. The country's reservoir inflows have dropped by 20%, severely affecting hydropower generation and forcing Ethiopian Electric Power (EEP) to cut power to miners by 75%. This reduction, from the contracted amounts, now leaves miners with just 23% of their usual supply.

The decision prioritizes households and factories over Bitcoin mining operations. Miners consume about a third of Ethiopia's electricity and contribute around 35% of revenue to EEP, but households are being given priority during this time. The situation will be reassessed in October, with potential for further reductions if water levels do not improve.

This shift significantly impacts miners who previously relied on cheap hydropower. With a small share of the global Bitcoin network at around 2.4%, Ethiopia's overall influence remains limited.