Is Bitcoin Mining Robbing the World’s Poor of Cheap Eletricity?

As Bitcoin continues its global rise, the energy debate surrounding its mining operations is landing closer to home – and Ethiopia finds itself at the center of a growing controversy.

In May 2024, Ethiopia quietly opened its doors to international Bitcoin miners, signing a deal with Hong Kong-based Data Center Service (HKDC). The agreement granted HKDC access to Ethiopia’s state-run power grid to mine Bitcoin, taking advantage of the country’s vast hydroelectric capacity, particularly from the Grand Ethiopian Renaissance Dam (GERD) – one of Africa’s largest power projects.

While the Ethiopian government sees this as an opportunity to monetize surplus electricity and attract foreign investment, critics argue that it risks diverting power from local communities and industries still struggling with unreliable supply.

Ethiopia is home to 57 million people who live without access to electricity, making it the third largest unserved population in the world, behind only Nigeria and Democratic Republic of Congo.

The Ethiopia Electric Power (EEP) has reportedly earned over $200 million from bitcoin miners during the first six months of 2025.

Over 45% of Ethiopia’s population lacks access to electricity, and even in major cities, blackouts are frequent.

“It’s hard to explain to people living in the dark why energy is being used to mine Bitcoin,” says a local energy analyst in Addis Ababa, Ethiopia.

Bitcoin’s Growing Energy Appetite in Africa

Ethiopia isn’t alone. Across Africa, Bitcoin miners are being lured by abundant renewable resources, underutilized grids, and favorable government policies. Countries like Kenya, Zimbabwe, and Democratic Republic of Congo have also seen rising interest from crypto mining operations seeking cheaper power and regulatory arbitrage.

But the underlying question remains: Who benefits?

While some argue that the revenue generated by diverting electricity to Bitcoin mining would otherwise be wasted due to a lack of transmission infrastructure, others differ.

In theory, these mining deals promise jobs, foreign currency inflows, and better grid utilization. In practice, however, critics say the benefits often flow back to foreign companies, while local populations see little change.

A 2023 study by the Global Energy Monitor found that crypto mining operations in Africa tend to prioritize profit over equitable development. This includes securing long-term power at preferential rates, often in opaque deals with state-owned utilities.

US-listed Bitcoin mining firm BIT Mining, which paid $4 million in 2023 to settle bribery allegations involving Japanese lawmakers, is now shifting its outdated mining equipment from the United States to Ethiopia. Despite being considered obsolete elsewhere, the machines remain profitable in Ethiopia thanks to the ultra-low electricity costs, the company said in early 2025.

Balancing Growth with Equity

Ethiopia’s government has emphasized that crypto mining is only permitted in specific industrial parks and zones where excess energy exists. However, the lack of transparency and public consultation has raised alarms among civil society groups.

“Africa should not become a dumping ground for global crypto operations seeking cheap energy,” warns an energy policy expert based in Nairobi.

“We must ensure these deals do not undermine the continent’s development goals.”

Bitcoin mining is unlikely to go away – in fact, it may accelerate as more African countries explore digital asset legislation and ways to monetize infrastructure. But as Ethiopia’s experiment shows, the continent must tread carefully.

Harnessing crypto’s economic potential while safeguarding public resources and energy access will require strong governance, transparency, and clear national strategies – not just short-term profits.

Stay tuned to BitKE for deeper insights into the African crypto and stablecoin space.

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