Africa Accounts for 3% of Global Bitcoin Mining Hashrate Through Renewable Energy
Edson Baraukwa | Africa Guardian
As of December 2024, Africa now contributes 3% of the global Bitcoin mining hashrate, with Ethiopia alone producing 2.5%, a significant leap from the previous year. This growth is powered entirely by renewable energy, highlighting the continent’s increasing role in the global Bitcoin mining landscape.
Ethiopia’s recent decision to legalize Bitcoin mining has led to a surge in mining operations, with reports indicating over $1 billion invested in mining infrastructure in 2024. Other African countries, including Kenya, are also exploring Bitcoin mining as a means to drive economic growth, electrify communities, and support green energy initiatives.
Africa’s low-cost, renewable energy sources, such as Ethiopia’s electricity at 3.2 cents per kilowatt-hour, make it an attractive destination for global Bitcoin miners.
Bitcoin Mining Growth in Africa in 2024
Local Bitcoin mining companies like Gridless are playing a pivotal role in advancing green Bitcoin mining and rural electrification. By using hydro and biomass power, they continue to make strides in Kenya. As Bitcoin mining rises in Africa, the Green Africa Mining Alliance, led by Gridless and other mining companies such as Trojan Mining in Nigeria, is instrumental in setting industry standards and sharing best practices.
Ethiopia: Leading Bitcoin Mining in Africa
Bitcoin mining in 2024 is largely centered in East Africa, with Ethiopia leading the charge, contributing 2.5% to the global hashrate. The country’s Bitcoin mining operations have generated over $55 million in revenue from electricity sales, accounting for 18% of Ethiopia Electric Power’s (EEP) total revenue. These earnings have expedited the development of transmission lines, enabling power from the Grand Ethiopian Renaissance Dam (GERD), which is poised to generate over 6 gigawatts of electricity. Bitcoin mining is proving to be a key driver for the country’s energy infrastructure.
Outlook for Africa’s Bitcoin Mining in 2025
With the GERD now operating at 30% of its planned capacity, Ethiopia’s Bitcoin mining sector is set for continued growth. EEP’s revenues are expected to exceed $100 million in 2025, further accelerating the construction of transmission lines and expanding electricity access to rural communities. Ethiopia’s success is paving the way for neighboring countries, such as Kenya, which is exploring Bitcoin mining partnerships like the one with MARA, to follow suit in leveraging Bitcoin to solve energy challenges.
West African nations, including Nigeria, are also poised to enter the Bitcoin mining space, utilizing hydroelectricity and flared gas. As Bitcoin mining continues to expand across Africa, it will remain a critical tool for powering energy infrastructure development, fostering rural electrification, and driving economic growth across the continent.
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