PANews reported on January 7 that according to CoinDesk, BIT Mining obtained 51 megawatts of power facilities and nearly 18,000 Bitcoin mining machines in Ethiopia through a $14 million deal. Since Ethiopia's electricity costs are about 70% lower than in the United States, the company was able to transfer old mining machines that were eliminated in the United States to local use, thereby extending the life of the mining machines by about two years. This model creates a positive feedback loop for BIT Mining, attracting more investment and increasing the return on mining machines.
Ethiopia's abundant hydropower resources (partly from Chinese-funded projects such as the Grand Ethiopian Renaissance Dam) and government support for Bitcoin mining provide BIT Mining with a unique opportunity. Currently, Ethiopia contributes 1.5% of the Bitcoin network's computing power, which is comparable to Norway. Despite the social unrest, BIT Mining chose to purchase existing facilities rather than build new ones to reduce potential risks.
In the future, BIT Mining plans to explore more investment opportunities in Ethiopia, including energy infrastructure, artificial intelligence data centers and more Bitcoin mining projects. The company believes that the country has great potential with low-cost construction and resource advantages.
