Ethiopia has emerged as a significant player in the cryptocurrency sector, with its Bitcoin mining operations now accounting for 2.5% of the global hash rate.

The country's attractiveness as a mining hub is enhanced by its abundant hydropower resources and surplus renewable energy.

Currently, Ethiopian mining operations consume around 600 MW of power, with projections indicating this could rise to 1 gigawatt by the end of the year.

This surge in the mining sector can be traced back to the 2021 ban on Bitcoin mining in China, which prompted many Chinese miners to relocate to Ethiopia.

Chinese companies have made significant investments in Ethiopia, with BitFuFu supporting major mining operations and BIT Mining acquiring a 51 MW Bitcoin mine for $14.3 million.

The state-owned Ethiopian Electric Power (EEP) has generated over $55 million in revenue from agreements with 25 Bitcoin mining companies in the past 10 months, showcasing the sector's strong growth.

Local miner Kal Kassa recently projected that Ethiopia's contribution to the global hash rate could double to 5% within a year, based on trends observed by EEP.

If this projection holds true, Ethiopia would join the ranks of the top five Bitcoin mining nations globally, alongside the United States, China, and the Czech Republic.

Boyd Cohen, a Bitcoin mining advocate, noted that countries that adopt Bitcoin early could emerge as economic leaders, suggesting a potential redistribution of wealth in the coming decades.