Ethiopia Slashes Power to Bitcoin Miners Amid El Niño-Driven Water Shortages

Ethiopia's Bitcoin mining industry is facing a severe blow as the country has cut power to miners by 75%. The move comes amid worsening water shortages caused by El Niño, which have reduced hydroelectric reservoir inflows by about 20%.

The country, known for its cheap electricity, has become a major hub for Bitcoin mining. Chinese and global miners are attracted to the low costs, with mining one Bitcoin requiring an estimated 6.4 million kilowatt-hours of electricity, equivalent to the annual consumption of around 14,950 average Ethiopian households.

The power cuts have been implemented by Ethiopian Electric Power (EEP) to preserve electricity for households and manufacturers. EEP Chief Executive Officer Ashebir Balcha stated that the industry's energy demand has raised concerns over how Ethiopia allocates scarce electricity, with about half of the country's population still lacking access to power.