BIT Mining has expanded its operations to Ethiopia, taking advantage of low electricity costs to prolong the utility of its bitcoin mining rigs. By acquiring significant energy resources and machinery, the company aims to optimize its operational strategies while contributing to Ethiopia’s growing position in the global bitcoin mining ecosystem.
BIT Mining has initiated operations in Ethiopia, which has proven advantageous due to the country’s remarkably low electricity costs. The company bought 18,000 bitcoin mining rigs and secured 51 megawatts of energy resources, enabling the extension of these machines’ lifespan due to the minimal operational costs compared to the United States. Ethiopia currently generates 1.5% of Bitcoin’s total hashrate, which parallels the output of Norway. Dr. Youwei Yang, the chief economist at BIT Mining, highlights that operating in Ethiopia provides a much longer productive lifecycle for mining rigs, enhancing returns for investors. The company intends to shift older machines to Ethiopia while utilizing newer models in the United States, thereby creating a mutually beneficial cycle.
The potential for bitcoin mining in Ethiopia is further supported by the nation’s existing hydroelectric infrastructure, augmented by substantial Chinese investments. Despite ongoing civil strife, BIT Mining carefully evaluated the situation before expanding and has focused on creating a local workforce for its operations. The firm also sees opportunities beyond bitcoin mining, including ventures in artificial intelligence.
Ethiopia’s strategic positioning allows BIT Mining to capitalize on low energy costs, making it feasible to implement older bitcoin mining technology that is nearing obsolescence in more competitive markets. The country’s electrical standards align closely with those of China, and extensive investments in hydroelectric projects have provided ample power resources for mining operations. While Ethiopia grapples with internal conflict, its government has maintained a supportive stance toward the mining industry, fostering conditions conducive to growth in this sector. The overall economic context indicates Ethiopia’s potential for enhancing its global positioning within the cryptocurrency mining landscape.
In summary, BIT Mining’s operations in Ethiopia exemplify a strategic approach to optimizing bitcoin mining through lower electricity costs and extending the lifecycle of mining rigs. The company’s investment not only signifies confidence in the Ethiopian market but also highlights exploration opportunities for broader technological exploitation within the country. With careful management of social and operational challenges, BIT Mining is poised to benefit from its expansion into Ethiopia, leveraging both local resources and expertise.
Original Source: www.coindesk.com
