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Chinese Bitcoin miners were drawn to Ethiopia by a reported low, fixed electricity price, a hydropower-heavy grid, dollar payments and cooler high-altitude conditions. But “haven” describes an attraction reported in 2024, not a guarantee of cheap power or a permanent welcome: Ethiopian Electric Power (EEP) was reported to pause new mining agreements in August 2025 while prioritizing domestic electricity needs. The available reports do not establish whether that pause remains in force in 2026.

Why did Chinese Bitcoin miners move to Ethiopia?

The main draw was electricity. Bitcoin mining uses specialized computers that consume large amounts of power while competing to solve mathematical puzzles and validate transactions. Power costs therefore weigh heavily on a mining operation’s economics. After China banned cryptocurrency mining and trading in 2021, operators sought locations with more favorable power and regulatory conditions, according to The Business Times’ February 2024 report, sourced to Bloomberg.

Ethiopia permitted Bitcoin mining in 2022, although cryptocurrency trading remained banned, that report said. The combination of access to electricity and permission to mine made the country an alternative base for operators willing to accept local infrastructure and policy risks.

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The reported electricity price

The Business Times reported in February 2024 that EEP offered miners a fixed rate of 3.14 US cents per kilowatt-hour. A separate February 2024 account from the NTU-SBF Centre for African Studies put the rate at 3.15 US cents per kilowatt-hour. These are separately attributed, dated figures—not a current tariff or a single agreed rate. The NTU account also noted that fixed pricing could appeal to miners compared with more variable electricity prices in places such as Texas, but the sources do not provide a current, like-for-like comparison of contract terms, reliability or total operating costs.

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Hydropower, dollars and climate

Ethiopia’s generation mix was another part of the reported appeal. Reuters put installed generation capacity at 5,200 MW, with about 90% from hydropower, in 2024. NTU cited early-2024 figures of 5,200 MW, approximately 90% hydropower, 8% wind and 2% thermal. Those are dated national estimates; a large hydropower share does not prove that surplus electricity is available at every location or time.

The 2024 reporting also pointed to payments in US dollars, which could bring foreign currency into Ethiopia, and the cooler conditions of high-altitude Addis Ababa, which may help with equipment cooling. These factors could support an operation’s business case, but do not by themselves establish profitability, reliable supply or low total costs.

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How much electricity does Bitcoin mining use?

Mining’s energy demand is substantial because the specialized machines run continuously and facilities must manage the heat they produce. Estimates of the network’s total electricity use differ. The Business Times’ February 2024 report cited the Cambridge Centre for Alternative Finance estimate of 121 terawatt-hours (TWh) for Bitcoin mining in 2023. The NTU-SBF Centre for African Studies cited a Cambridge Bitcoin Electricity Consumption Index range of 67–240 TWh for 2023, equivalent in that account to 0.2%–0.9% of global electricity demand. These are different published estimates, not figures that should be averaged or treated as a precise measurement.

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What was the scale of mining in Ethiopia?

The Business Times reported in February 2024 that EEP had power-supply deals with 21 Bitcoin miners, all but two of them Chinese, and that new contracts had been paused at that point to ensure a managed process. The report’s account of the contract count and miner nationalities describes that moment, not today’s roster.

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In January 2025, NTU reported that BIT Mining had agreed to acquire 51 MW of Ethiopian mining facilities, including data centers and mining machines, for about US$14 million. That report also said EEP had earned US$55 million from mining in the prior year and forecast US$123 million for 2025. The forecast was made in January 2025; it is not a verified result or a 2026 revenue figure. The reported acquisition likewise does not establish the facilities’ subsequent operating performance.

Why is Ethiopia putting limits on new mining deals?

Mining sales can bring foreign-currency revenue, but large power allocations also compete with other uses. The trade-off is especially significant where households, manufacturers and rural communities need greater electricity access. NTU reported in 2025 that 55% of the population had electricity access at home. Reuters gave a separate estimate in 2024 that about 40% lacked access. These figures come from different sources and dates, so they should not be read as directly comparable measurements.

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EEP’s chief executive, Ashebir Balcha, was quoted by Addis Insight on August 8, 2025, saying: “Our focus is on meeting Ethiopia’s growing domestic electricity needs first, before expanding supply to energy-intensive activities such as digital mining.” Addis Insight also reported that 27% of electricity generated by EEP had been allocated to data (crypto) mining companies during the past fiscal year. That is a secondary-source figure reported in 2025, not an independently verified current share.

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Shega reported on August 7, 2025, and Addis Insight on August 8, 2025, that EEP was pausing new crypto-mining power agreements to prioritize domestic needs. Together, these reports establish a reported pause at that time; they do not establish whether it remains in effect in 2026.

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What risks do miners face in Ethiopia?

Low electricity prices matter only if miners can secure power and keep operating. In the February 2024 Business Times report, Jaran Mellerud, chief executive of Hashlabs Mining, identified two risks: countries can run out of available electricity, leaving little room for expansion, and governments can decide miners are no longer welcome. The 2025 reports of a pause on new agreements illustrate why policy and power availability belong in the business calculation, even though they do not show what happened to existing contracts.

  • Supply risk: Hydropower-heavy generation does not guarantee unused capacity for miners; electricity must also meet domestic demand.
  • Policy risk: Permission to mine and a power agreement do not guarantee that future agreements or expansion will be approved.
  • Operating risk: Hardware, cooling, contract terms and supply reliability affect costs beyond the headline per-kWh rate.

How did mining companies obtain permission and power?

A July 2024 U.S. International Trade Administration account described the process then reported for mining firms. It involved permission to import specialized hardware, an electricity agreement and an investment license:

  1. Seek permission from the Information Network Security Administration (INSA) to import specialized mining hardware.
  2. Sign a power-purchase agreement with Ethiopian Electric Power (EEP).
  3. Obtain an investment license from the Ethiopian Investment Commission (EIC).

This is the process described by the Trade Administration in July 2024; it should not be assumed to reflect current requirements or approval availability.

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