HomeNewsBreaking Boundaries: Ethiopia Ventures into Bitcoin Mining with $250M Initiative

Breaking Boundaries: Ethiopia Ventures into Bitcoin Mining with $250M Initiative

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  • Ethiopia begins Bitcoin mining in collaboration with Data Center Service PLC, marking its entry into digital economic strategies.
  • The $250 million project seeks to establish advanced infrastructure for data mining and artificial intelligence in Ethiopia.

Ethiopia has set a new course in its economic strategy by diving into Bitcoin mining, positioning itself alongside an exclusive group of countries that have integrated this activity into their economic development plans.

This initiative stems from an agreement with Data Center Service PLC, a subsidiary of Hong Kong-based West Data Group, as a key component of an ambitious data mining project valued at $250 million.

Ethiopia goes deep into BTC mining

Kal Kassa, leader of Hashlabs Mining in Ethiopia, confirmed the news:

“The Ethiopian government will start bitcoin mining through its partnership with Data Center Service PLC, focusing on a $250 million data mining project.”

This move by the government highlights its effort to incorporate cryptocurrency mining into a broader digital and economic strategy.

The news has been welcomed by the cryptocurrency community. Ben Van Hodl of JAN3, an organization that drives Bitcoin adoption at the state level, stated:

“A new country is added to the Bitcoin mining list.”

Similarly, Jaran Mellerud of Hashlabs Mining sees this as strong support for the bitcoin mining industry in Ethiopia.

Ethiopian Investment Holdings, via LinkedIn, has disclosed details about this cooperation with West Data Center Service PLC. The project aims to create advanced infrastructure for data mining and artificial intelligence training, signaling a shift for technology-driven economic development in Ethiopia.

Recent Bloomberg reports note that Chinese Bitcoin miners find Ethiopia a favorable location, attracted by the economic energy and good relations with China. Currently, 21 miners operate in the country, mostly of Chinese origin.

Countries involved in Bitcoin mining

El Salvador was a pioneer in granting Bitcoin legal tender status and initiating government mining using geothermal energy in 2021. This is complemented by the establishment of a local mining pool in October 2023 and a partnership to develop a $1 billion mining farm in June 2023, showing strong backing towards the cryptocurrency.

After El Salvador, Bhutan, Russia, the United Arab Emirates and Oman also officially started BTC mining. Bhutan has been using its excess hydropower since 2020, with intentions to expand.

Russia got involved through a partnership between Gazprom and BitRiver. The UAE facilitated Marathon Digital’s expansion in Abu Dhabi, and Oman supported a $1.1 billion investment in Exahertz to grow in mining.

Thus, Ethiopia establishes itself as the sixth country to formally declare its participation in BTC mining. Clarity on these operations globally is still a matter of contention, with rumors in the crypto community that other countries may be conducting Bitcoin mining in a hidden manner.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628