Ethiopia Seeks Partners to Transform State-Backed Bitcoin Mining Into Revenue Stream
Addis Ababa is opening its doors—and its power grid—to turn crypto mining into a national cash cow.
The Geopolitical Play
Forget speculative trading. Ethiopia's strategy flips the script: leveraging state-controlled energy infrastructure to mine Bitcoin directly. It's a sovereign wealth fund for the digital age, bypassing traditional forex markets and aiming to monetize surplus electricity that would otherwise go unused. The government isn't just tolerating crypto—it's trying to become a principal.
The Infrastructure Gambit
This isn't about retail miners in a basement. The plan requires industrial-scale partners to deploy hardware and manage operations, with Ethiopia providing the power and the political cover. Think of it as a public-private partnership where the 'public' part controls the grid and the 'private' part brings the ASICs and the technical know-how. The goal? Transform megawatts into a steady stream of digital asset revenue.
The Bottom Line
If it works, Ethiopia could create a blueprint for other energy-rich, capital-poor nations. If it fails, it'll be another case study in how hard it is to bureaucratize a decentralized revolution—right up there with trying to put a government committee in charge of innovation. Either way, they're betting the farm on turning watts into wealth, proving that in global finance, everyone eventually tries to print their own money—some just use more advanced printers.
Ethiopian Electric Power generates $millions from Bitcoin mining
Over the past few years, the country has quietly become Africa’s leading Bitcoin mining hub. Ethiopia has Leveraged its massive Grand Ethiopian Renaissance Dam (GERD) and other hydropower projects for Bitcoin and crypto mining.
The Grand Ethiopian Renaissance Dam generates over 6,000 megawatts, but the grid cannot absorb even half that amount. By mid-2025, the country had approximately 23 mining operations. They were initially led by Asian companies, followed by the Americans, and then locals getting in on the action. All collectively pulled around 600 megawatts at 3.2 cents per kWh.
The country’s government actively promotes and licenses crypto mining. For instance, the UAE-based Phoenix Group announced a partnership with Ethiopian Electric Power (EEP), the nation’s state-owned utility, for a new mining data center.
EEP currently operates 20 power stations with a combined capacity exceeding 7,900 megawatts. It does power exports to Kenya and Djibouti. It has seen growth as Kenya requested an additional 100 megawatts on top of the 200 megawatts it currently receives.
In 2024, EEP exported nearly 7% of Ethiopia’s generated power, earning $338 million in foreign currency. It generated $55 million in Bitcoin mining revenue over 10 months that year, primarily through agreements with 25 mining companies.
However, the country halted new crypto mining licenses for data mining companies last year, effectively halting the expansion of cryptocurrency mining. As reported by Cryptopolitan, the state claimed that the state-owned Ethiopian Electric Power (EEP) had reached its limit in meeting new demand.
Foreign investors flood Africa to leverage on their power
According to Cambridge, Africa accounts for approximately 3% of global BTC hash rate, nearly all hydro, geothermal, or solar with 2.5% is generated in Ethiopia. Overall, that’s expected to double by 2027, with Rwanda negotiating small modular reactors and Malawi completing new Shire River dams.
In Kenya, Gridless Compute is a leader in Bitcoin mining. Established in 2022, the company has built hydro-electric mini-grids in Murang’a County, in a partnership with HydroBox, an African hydroelectric power company.
These mini-grids use river water to generate electricity, powering Bitcoin mining operations. In Murang’a, Kenya, Gridless operates Bitcoin mining sites, lowering energy rates for 2,000 people in the area. The company says it has helped reduce the village’s electricity costs from $10 per month to $4.
The project has garnered attention from the global crypto community. Block, the digital payments company run by former Twitter (X) CEO Jack Dorsey, and Stillmark, a Bitcoin-focused venture firm, led a $2 million startup investment into Gridless.
The Democratic Republic of Congo also manages a modest program within Virunga National Park. Also, South African solar developers combine daytime solar panels with evening mining loads to secure bank financing that they WOULD not be able to attain solely with residential consumers.
Nigeria, on the other hand, conducts operations that recover waste methane from drilling platforms rather than releasing it into the atmosphere through combustion. However, African countries like Angola banned mining outright.
Globally, other countries with government-sponsored Bitcoin mining include Russia, France, Bhutan, El Salvador, and the UAE. Japan became the 11th country to join the list. Japan has witnessed massive crypto adoption, with Metaplanet as the fourth-largest Bitcoin treasury.
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