Ethiopia Slashes Power to Bitcoin Miners Amid Severe Hydropower Shortage

Ethiopia has sharply reduced electricity deliveries to Bitcoin miners due to a severe hydropower shortage caused by El Niño's dry conditions. According to Bloomberg, the country's hydroelectric reservoirs have seen a 20% drop in water inflows, forcing Ethiopian Electric Power (EEP) CEO Ashebir Balcha to cut power to miners.

The initial reduction was 75%, later eased to 50%, and now stands at just 23% of contracted levels. This drastic measure aims to prioritize households and manufacturers over Bitcoin mining operations, which account for a significant portion of EEP's revenue, 35% in the last fiscal year alone.

Bitcoin miners consume nearly one-third of Ethiopia's electricity output, and the country's inexpensive hydropower has attracted international miners. The Phoenix Group, for instance, expanded its Ethiopian mining capacity to 132 megawatts in April this year.