BIT Mining Expands to Ethiopia with a $14 Million Project
According to Cryptopolitan, China's BIT Mining has successfully completed a significant expansion into Ethiopia by acquiring a 51-megawatt facility valued at $14 million. This strategic move includes the acquisition of 18,000 mining rigs and positions Ethiopia as an emerging player in the Bitcoin network, contributing approximately 1.5% to its total hash rate.
The deal was executed in two phases; initially, BIT Mining acquired a fully operational crypto-mining data center with 35 MW capacity. The company opted for purchasing existing facilities rather than constructing new ones from scratch due to cost-effectiveness and efficiency considerations. Dr. Youwei Yang, Chief Economist at BIT Mining, highlighted that electricity costs in Ethiopia are nearly 70% lower compared to Ohio, USA—providing substantial savings on operations.
This economic advantage allows BIT Mining not only to extend the lifespan of older generation mining machines but also enables them to recycle these devices within Ethiopian plants effectively. While newer ASICs remain stationed in the U.S., this approach creates higher returns for investors who might otherwise face limitations if operations were confined solely within American borders.
Ethiopia's abundant hydropower resources have been bolstered by Chinese investments exceeding $8.5 billion across various projects—including contributions towards developing GERD (Grand Ethiopian Renaissance Dam), which will generate over 5,000 MW upon completion. Despite civil unrest affecting parts of northern regions under federal control, challenges persist regarding workforce relocation efforts between countries like China or America versus Africa-based sites such as those established here now through partnerships led primarily via governmental support initiatives aimed specifically at fostering growth opportunities related directly back onto local economies themselves too!
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