2024 was a pivotal year for Ethiopia, as it generated around $1 billion in Bitcoin mining profits due to its access to cheap, reliable, and renewable energy sources.

Africa region Production of fintech unicorns Which provides unbanked (and largely smartphone-using) residents and merchants with payment solutions. Companies like TymeBank, Moneypoint, and Opay have made hundreds of millions of dollars by creating and maintaining mobile payment apps and landline touchpoints. In conditions where banks are absent - 80% of Africans do not have bank cards - digital financial solutions are filling the void, and cryptocurrencies are one of the factors shaping the contemporary financial reality of the continent.

Ethiopia has entered the global BTC mining summit

According to the Intellinews websiteIn 2023, only 35% of Ethiopians had bank accounts. However, this did not prevent the country from becoming one of the world's leading countries in the field of Bitcoin mining. In 2024, Ethiopia became the first African country to have a large-scale, state-backed cryptocurrency mining operation. Its revenues are expected To reach $5.4 billion in 2027.

The backbone of Ethiopia's success in this sector is the Grand Ethiopian Renaissance Dam, a gravity dam to be built on the Blue Nile River by 2024. The Renaissance Dam is one of the 20 largest hydroelectric power stations in the world and the largest in Africa. It provides electricity to the entire country and produces enough to export to other countries.

Bitcoin critics have often emphasized the network's excessive energy consumption, noting that many mining operations take place in countries with cheap electricity that rely on dirty fossil fuels. However, Ethiopia is mining bitcoins using cheap and clean energy from the Renaissance Dam. Interestingly, Only half of Ethiopian population has access to electricity. This means that a large portion of the surplus energy can be invested in mining.

In 2024, Ethiopia made $1 billion through Bitcoin mining. Profits from mining help maintain the GERD infrastructure. According to Happy Coin News, the mining operation represents 18% of the country's annual national income.

In October, Luxor Mining's Executive Director of Operations, Ethan Vera, outlined the key components of Ethiopia's success in the sector. These include cheap electricity and the use of mid-generation mining hardware that consumes less power and costs less than newer hardware. The main models used in Ethiopia, according to Vera, are Bitmain's S19J Pro and Canaan's A1346.

Ethiopian scheme

In 2024, Ethiopia contributed 2.25% of the global hash power to Bitcoin mining. According to Luxor Mining, Ethiopia is the second largest contributor to hash power after the USA, Hong Kong and Asia.

Ethiopia's success demonstrates that governments can use cryptocurrencies to fund infrastructure development and lift local economies. Ethiopia has emerged as a leading country in Bitcoin mining without compromising environmental sustainability. It is worth noting that green mining requires easy access to clean energy while profits are reinvested in the development of the dam, representing a win-win scenario.

While Ethiopia was building its mining hub, other countries took notice. For example, the Democratic Republic of Congo is set to build its own clean mining operation in Virunga National Park. Meanwhile, smaller players in other countries are developing local networks to support grassroots mining operations. Initiatives like Gridless and Trojan Mining are also promoting green Bitcoin mining efforts in Africa.

Ethiopia is paving the way for other African countries to tap into renewable energy sources to build Bitcoin mining operations. Similar efforts across the continent could inject vitality into local economies, amplify the ongoing fintech revolution, and open new opportunities for African countries.