Is a new Bitcoin mining oasis taking shape in Ethiopia?

Ethiopia attracts Chinese Bitcoin miners with favorable conditions and sustainable energy.

Ethiopia is attracting Chinese Bitcoin miners with favorable conditions and sustainable energy. Will the country become a new mining oasis?

As Bloomberg reports, mining companies are investing more and more in Ethiopia's infrastructure. About 19 of the 21 miners come from China.

The reason for the influx is the favorable power supply. The cool climate is also a plus for Ethiopia compared with, for example, the dry climate of Texas. Bloomberg says cooling mining gear there is considerably more expensive.

A kilowatt-hour costs only three cents in Ethiopia, Bloomberg adds. Miners also have access to renewable electricity: 92 percent is generated from hydropower.

"Ethiopia will become one of the most popular locations for Chinese mining companies," predicts Nuo Xu, founder of the Chinese Mining Association.

Bitcoin mining is banned in China, after all. In 2021 the government banned all activities, which led to a brief drop in hashrate.