9 months ago
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Ethiopia has officially announced its foray into Bitcoin mining, aligning itself with a growing list of countries that have integrated cryptocurrency mining into their national economic strategies. This development comes through a partnership between the Ethiopian government and Data Center Service PLC, a subsidiary of the Hong Kong-based West Data Group. The collaboration is part of a substantial $250 million data mining project announced within the country.
Ethiopia Joins The BTC Mining Circle
Kal Kassa, CEO for Ethiopia at Hashlabs Mining, confirmed the initiative: “It’s official! The Ethiopian Government will be mining bitcoin through its partnership with Data Center Service PLC… The partnership will be for the purposes of a $250 million data mining project in Ethiopia.” This statement underscores the government’s commitment to leveraging cryptocurrency mining as a part of its broader digital and economic strategy.
It's official!🥂
The Ethiopian Government will be mining bitcoin through it's partnership with Data Center Service PLC, a subsidiary of the West Data Group…🫱🏽🫲🏿
The partnership will be for the purposes of a $250 million data mining project in Ethiopia 🇪🇹 pic.twitter.com/2YfQ3QbUEO
— Kal Kassa (@KalKassa) February 15, 2024
The news was met with enthusiasm from key figures in the cryptocurrency community. Ben Van Hodl, COO at JAN3, which promotes nation-state Bitcoin adoption, remarked, “Another nation-state goes into Bitcoin.” Similarly, Jaran Mellerud of Hashlabs Mining celebrated the development as “A massive stamp of approval for the #bitcoin mining industry in Ethiopia.”
The official announcement by Ethiopian Investment Holdings, shared via LinkedIn, elaborated on the scope of the partnership with West Data Center Service PLC. It highlighted the project’s aim to establish state-of-the-art infrastructure for data mining and artificial intelligence training operations in Ethiopia, indicating a broad vision for technology-driven economic growth.
Ethiopian Investment Holdings today signed a memorandum of understanding with West Data Center Service PLC […].This partnership aims to spearhead a groundbreaking $250 million data mining project that is dedicated to establishing cutting-edge infrastructure for data mining and artificial intelligence training operations in Ethiopia.
A few days ago, Bloomberg reported that Chinese Bitcoin miners have found a new haven in Ethiopia. “Cheap power and friendly relations with China have made the Horn of Africa country a top pick for Chinese Bitcoin miners,” the report stated, adding that already 21 miners are operating in Ethiopia, the majority being Chinese.
Nation-States That Mine Bitcoin
El Salvador led the charge in nation-state Bitcoin adoption by granting it legal tender status and initiating state-backed mining using geothermal energy in 2021. This was followed by the launch of a local Bitcoin mining pool in October 2023 and a partnership to construct a $1 billion mining farm in June 2023, illustrating a deepening commitment to the cryptocurrency.
Following El Salvador, the Kingdom of Bhutan, Russia, the United Arab Emirates, and Oman have also officially ventured into official BTC mining. Bhutan is utilizing its surplus hydroelectric energy for mining since 2020, with plans for expansion. Russia entered the scene through a partnership between Gazprom and BitRiver. The UAE expanded Marathon Digital’s operations into Abu Dhabi, while Oman endorsed a $1.1 billion investment in Exahertz for mining expansion.
This positions Ethiopia as the sixth nation to officially announce its engagement in BTC mining. However, the transparency of such operations globally remains uncertain, with speculation abounding within the cryptocurrency community that additional countries may be conducting Bitcoin mining activities in secret.
At press time, BTC traded at $51,908.
BTC price, 1-day chart | Source: BTCUSD on TradingView.com
Featured image created with DALL·E, chart from TradingView.com
