BIT Mining Acquires Ethiopian Bitcoin Mining Facilities and Machines in $14.3 Million Deal
In a significant move reflecting the growing prominence of Ethiopia in the global Bitcoin mining industry, NYSE-listed BIT Mining Limited has announced its acquisition of 51-megawatt crypto mining data centers and 17,869 high-performance Bitcoin mining machines in Ethiopia. The transaction, valued at $14.3 million, was finalized on December 3, 2024, marking a new chapter in the East African nation’s burgeoning cryptocurrency sector.
Deal Details and Phased Approach
The acquisition will be executed in two phases. In the first phase, BIT Mining will assume ownership of a 35-megawatt operational and electrified data center, along with all 17,869 Bitcoin mining machines. This phase is expected to close in the coming days.
The second phase involves transferring the remaining data centers to BIT Mining upon completing their construction. The phased approach ensures a seamless transition and allows BIT Mining to rapidly operationalize its new assets while overseeing the final construction process.
A Strategic Move for BIT Mining
BIT Mining Limited, a leading technology-driven cryptocurrency mining company, sees this acquisition as a major milestone in its global expansion strategy. Known for its expertise in cryptocurrency mining, data center operations, and mining machine manufacturing, the company boasts advanced 7-nanometer BTC chips and strong capabilities in developing Litecoin (LTC), Dogecoin (DOGE), and Ethereum Classic (ETC) miners.
“This transaction represents a significant milestone in advancing our global development strategy,” remarked Xianfeng Yang, CEO of BIT Mining. “With our expanded market presence and robust operational capabilities, we are well-equipped to further solidify our competitive edge and enhance our profitability and financial standing, paving the way for long-term, sustainable growth.”
The move follows BIT Mining’s decision to divest its mining pool business, enabling the company to focus on mining machine innovation, self-operated mining, and data center operations.
Ethiopia: A Rising Power in Bitcoin Mining
Ethiopia has emerged as a key player in the global Bitcoin mining industry, leveraging its abundant and affordable energy resources, particularly hydropower. The country’s commitment to supporting Bitcoin mining has been reinforced by Ethiopian Electric Power (EEP), which pledged to supply 600 megawatts of electricity for mining operations.
In just the past ten months, Ethiopia has generated $55 million in Bitcoin mining revenue, capturing 2.25% of the global Bitcoin mining market. This growth has attracted significant interest from international mining companies, many of which have relocated from China to take advantage of Ethiopia’s favorable conditions.
The Grand Ethiopian Renaissance Dam (GERD), a key infrastructure project for energy production, has further bolstered Ethiopia’s mining potential. Earlier this year, EEP signed power supply agreements with 21 Bitcoin mining companies, solidifying Ethiopia’s position as one of the world’s top destinations for Bitcoin mining investments.
Market Landscape and Future Prospects
Currently, Ethiopia hosts approximately 18 data mining companies, with electricity consumption ranging from 10 to 100 megawatts. BIT Mining’s entry into this market enhances its operational capacity and positions the company to capitalize on Ethiopia’s growing Bitcoin mining sector.
Ethiopia’s government has also expressed interest in turning the nation into a hub for Bitcoin mining and advanced technologies like artificial intelligence. The partnership between international companies like BIT Mining and Ethiopia is expected to foster the development of infrastructure to support data mining and AI training operations, driving further innovation in the region.
Conclusion
BIT Mining’s $14.3 million acquisition of Ethiopian Bitcoin mining facilities is a testament to the country’s rapid rise as a global mining powerhouse. With its rich energy resources, strategic government support, and growing industry presence, Ethiopia is becoming a critical player in the cryptocurrency mining sector.
For BIT Mining, this deal represents a significant step forward in expanding its global footprint and enhancing its profitability. As Ethiopia continues to attract investment in Bitcoin mining, the country’s role in shaping the future of the cryptocurrency industry cannot be overstated.
