Ethiopia’s Bitcoin mining sector has reached a significant milestone, with the country now accounting for approximately 2.7% of the entire Bitcoin network hashrate, placing it 8th among the world’s largest Bitcoin mining nations. And in a move that signals just how seriously Addis Ababa is taking this opportunity, the Ethiopia Investment Holdings (EIH), operating under the Office of the Prime Minister, is now set to take a direct ownership stake of 20–30% in the major mining facilities being established across the country.
This isn’t a story about a government loosely welcoming foreign crypto capital anymore. This is a government pulling up a chair at the table.
The Numbers Tell the Story
Kal Kassa, a Bitcoin miner and advocate based in Ethiopia, laid out the figures at a recent industry event, and they’re hard to ignore.
As of now, 94 private limited companies are registered in Ethiopia dedicated to data centers, cloud services, and cryptocurrency mining. These companies are classified as foreign direct investment (FDI) entities, and collectively they’re spending roughly $30 million per month in electricity revenue paid directly to Ethiopia Electric Power (EEP), representing about 20% of EEP’s total revenue.
“They are selling stranded energy,” Kassa explained. “This is energy that we essentially don’t need at a certain time and place and it often dissipates if you don’t put it into a battery.”
It’s a remarkably efficient arrangement. Energy that would otherwise go to waste is being monetized through Bitcoin mining, and the scale is growing fast.
To put the hashrate contribution into everyday terms: every 10 minutes, Bitcoin’s network rewards miners with roughly 3 BTC. With Ethiopia controlling approximately 3% of global hashrate, a meaningful slice of that reward is flowing through Ethiopian mining infrastructure every single day.
In 2024 alone, Ethiopia contributed 2.5% of the global Bitcoin hashrate, a figure that has since climbed to 2.7%, reflecting the rapid expansion of mining operations on the ground.
Government Revenue and the Road to $350 Million
The financial case for Ethiopia’s involvement is becoming impossible to dismiss. In just 10 months of 2024, government-related Bitcoin mining operations generated approximately $55 million in revenue, a figure that’s set to dwarf itself going forward.
Kassa shared projections suggesting EEP’s revenue from these operations could reach $350 million in 2026, a number that would make Bitcoin mining one of the more significant contributors to Ethiopia’s electricity sector earnings.
It’s precisely this revenue potential that’s pushed the Ethiopia Investment Holdings to take things a step further. Rather than simply collecting electricity fees from private mining companies, EIH now wants equity in the facilities themselves, owning between 20% and 30% of the major mining mega-sites being developed within the country’s borders.
Prime Minister Abiy Ahmed made the government’s ambitions clear while speaking at the Finance Forward Ethiopia 2026 conference, stating that EIH is actively seeking experienced partners capable of bringing capital, mining technology, and operational expertise to a national Bitcoin mining initiative. The goal is to generate direct Bitcoin revenue for the country, not just electricity tariffs.
The Power Behind It All: GERD
None of this would be possible without the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydroelectric project, situated on the Blue Nile. With an installed capacity of just over 5,000 megawatts, more than double Ethiopia’s current domestic electricity consumption, GERD has effectively handed Ethiopia a surplus energy problem that Bitcoin mining is uniquely positioned to solve.
GERD is one of the largest hydropower stations on the planet, and it’s turning Ethiopia into one of the most attractive destinations for energy-intensive industries anywhere in the world. For Bitcoin miners chasing cheap, renewable power, it’s close to ideal.
The CEO of Ethiopia Electric Power, Ashebir Balcha, has been clear about how his organization views the arrangement. “Until the people have full access and the economy starts to consume this power, we’re using Bitcoin for transition, it’s not a permanent endeavor,” he said.
Backlash, Permit Freeze, and the Balancing Act
The growth hasn’t come without controversy. Public criticism emerged over concerns that the government was prioritizing foreign crypto companies over domestic citizens who still lack reliable electricity access. In response to the pressure, EEP announced it was suspending the issuance of new electricity permits to crypto and data mining companies until domestic electricity access improves.
When asked directly whether Bitcoin miners were receiving preferential treatment over local industries, Ashebir Balcha pushed back firmly: “No way. No way!”
The message from Ethiopian officials seems consistent, Bitcoin mining is a bridge strategy, a way to extract value from surplus hydroelectric capacity while the country’s domestic economy catches up to its energy production. It is not, at least officially, a long-term priority over the needs of Ethiopian citizens.
Whether that balance holds as financial incentives grow larger will be one of the more interesting things to watch.
