A Look At Bitcoin Mining in Africa and How You Can Get Involved
Bitcoin mining is gaining traction across Africa, positioning the continent as a growing global hub for mining activities. Leveraging abundant natural resources and untapped renewable energy, several African countries are attracting both local and international miners. Below, we explore leading Bitcoin mining initiatives and how you can get involved in this booming sector.
Ethiopia: The Rising Bitcoin Mining Powerhouse
Ethiopia has emerged as a key player in Bitcoin mining, now contributing 2.5% of the global hash rate. The nation’s rise in the mining sector is closely tied to its abundant renewable energy resources, particularly hydropower, and its welcoming stance toward Bitcoin miners.
Following China’s 2021 ban on Bitcoin mining, major mining companies like BitFuFu (backed by Bitmain) and BIT Mining relocated their operations to Ethiopia. Local players, such as QRB Labs, have also joined the scene, alongside Hong Kong-based West Point Data, which recently started constructing a 20MW Bitcoin mining facility in southern Ethiopia.
The Ethiopian government has actively supported this industry, generating over $55 million in revenue within the past 10 months through partnerships with Bitcoin mining companies. This strong public-private collaboration underscores Ethiopia’s ambition to become a regional leader in the Bitcoin mining space.
Kenya: Pioneering Bitcoin Mining with Renewable Energy
Kenya is making waves in Bitcoin mining by capitalizing on its extensive renewable energy resources, including geothermal and hydropower. Marathon Digital (MARA), a major U.S.-based mining company, has signed agreements with the Kenyan government to harness these resources.
One of the standout players in Kenya is Gridless, a company that creates hydroelectric mini-grids in rural areas and uses the excess energy to mine Bitcoin. Partnering with HydroBox, an African hydroelectric power provider, Gridless operates off-grid mining sites in Kenya and other African countries like Zambia, Malawi, and Nigeria.
Gridless’s model ensures that surplus energy is not wasted, enabling rural power operators to monetize excess electricity while expanding capacity and infrastructure. In late 2022, Gridless co-founded the Green Africa Mining Alliance (GAMA), a coalition of African Bitcoin mining ventures that includes teams like Trojan Mining (Nigeria), Sukuma Ventures (Kenya), BigBlock Data Center (Congo), and Quantum Hash Ventures (Zambia).
The Kenyan government has also extended open invitations to Bitcoin miners, offering access to its abundant geothermal energy. With such initiatives, Kenya is solidifying its role as a leader in sustainable Bitcoin mining.
How You Can Get Involved in Bitcoin Mining
Bitcoin mining can be highly rewarding, but it requires significant resources and technical know-how. For individuals looking to break into the industry, here are two accessible options:
1. GAMA ASIC SEED Program
The Green Africa Mining Alliance (GAMA) has launched the ASIC SEED Program to support aspiring Bitcoin miners. This initiative helps participants navigate the complexities of Bitcoin mining, including understanding local laws, sourcing energy, and acquiring the necessary hardware.
Through the program, participants can access ASIC miners at a heavily discounted price. GAMA’s goal is to create a centralized platform for knowledge sharing and to lower entry barriers for small- and large-scale mining operations.
Interested? Apply for the program and take your first step into Bitcoin mining.
2. Cloud Mining
For those who lack the resources or technical expertise for on-site mining, cloud mining offers an alternative. This model allows individuals to rent mining power from companies that own and operate mining equipment.
With cloud mining, users can participate in Bitcoin mining without dealing with the complexities of hardware setup, energy consumption, and maintenance. When a block is mined, rewards are shared between the user and the company based on the rented capacity.
While convenient, it’s important to thoroughly research cloud mining providers to avoid scams and ensure profitability.
Conclusion
Bitcoin mining in Africa is thriving, fueled by abundant renewable energy and supportive government policies. Ethiopia and Kenya are leading the charge, but the industry’s growth presents opportunities for individuals and businesses alike.
Whether you’re looking to dive into mining through GAMA’s SEED Program or explore the flexibility of cloud mining, there’s no better time to get involved in Africa’s Bitcoin mining revolution.
Stay tuned to TawkCrypto for more insights into Africa’s blockchain ecosystem!
