The Chinese company acquires a 51 MW facility and 18,000 miners, elevating Ethiopia to the same level as Norway in the Bitcoin network.
Chinese firm BIT Mining has successfully expanded into Africa, acquiring a Bitcoin mining facility in Ethiopia for $14.28 million. The deal, finalized on December 3, marks a strategic move positioning Ethiopia among the leading contributors to the global Bitcoin network hash rate (1.5%), equating its importance to that of Norway.
The agreement, structured in two phases, initially involved the acquisition of a 35 MW operational center, followed by an expansion to a total of 51 MW. The payment consisted of $2.265 million in cash and the issuance of Class A ordinary shares worth $12.015 million. The company is also focusing on training local staff, while currently maintaining a 33% share of foreign employees at the facility.
Dr. Youwei Yang, Chief Economist at BIT Mining, stated:
“Ethiopia offers exceptionally advantageous energy costs, approximately 70% lower than Ohio.”
This cost difference allows BIT Mining to optimize the use of its equipment, including older-generation machines that would already be obsolete in the United States. Yang explained that newer mining equipment is allocated to the U.S., while older machinery is relocated to Ethiopia, creating a virtuous cycle of optimization. Dr. Yang added:
“We can get at least two extra years by moving the rigs to Ethiopia, and then maybe after that, they’re completely done.”
Ethiopia’s abundant hydroelectric power, the result of over $8.5 billion in Chinese investments, plays a crucial role. Once completed, the Grand Ethiopian Renaissance Dam (GERD) will generate more than 5,000 MW of power. Currently, Bitcoin mining already accounts for 18% of the country’s monthly electricity sales.
