Chinese crypto mining companies are finding a new haven in Ethiopia, drawn by the country's low-cost hydropower and favorable climate, according to a recent Bloomberg report.
Chinese crypto mining companies are finding a new haven in Ethiopia, drawn by the country's low-cost hydropower and favorable climate, according to a recent Bloomberg report. This migration comes as China cracked down on crypto mining in 2021, forcing companies to seek alternative locations.
While Ethiopia officially bans cryptocurrency trading, it legalized Bitcoin mining in 2022, opening the door for Chinese investment. Bloomberg's investigation revealed that 19 out of 21 companies partnering with Ethiopia's power monopoly are Chinese.
Ethiopia's appeal lies in its abundant hydropower, which powers 92% of its electricity grid, despite nearly half the population lacking access. Its temperate climate also reduces cooling costs compared to hotter hubs like Texas, the current U.S. mining leader.
However, some miners resort to disguising their operations as factories or agricultural projects to bypass regulations and secure electricity without official approvals. This strategy comes with risks, as similar setups in Iran and Kazakhstan faced sudden government shutdowns.
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