BitCluster

History

2024: Ethiopia Data Center Launch

In early July 2024, the Russian mining company BitCluster announced the launch of its data center in Ethiopia. The event has become part of a trend in which the African country is actively attracting miners from around the world, offering attractive conditions for doing business.

According to Kommersant, Ethiopia is becoming one of the key players in the global cryptocurrency mining market. The country is confidently in the top 5 world leaders in terms of computing power for mining, which are estimated at 400-420 MW. Ethiopia's attractiveness for miners is due to several factors, including affordable electricity and favorable conditions for the placement of equipment.

𝓲

Freepik

Ethiopia's main advantage is the low cost of electricity, which is 92% produced by hydroelectric power plants. The country's largest hydroelectric power plants, such as Gilgel-Gibe III with a capacity of 1.87 GW and Velka with a capacity of 0.42 GW, provide stable power supply. Moreover, the Khydase hydroelectric power station with an installed capacity of 5.15 GW is currently under construction, which will further strengthen the country's energy potential.

The usefulness of mining in Ethiopia against the background of social and economic challenges in the country is still in question.

Experts point to a number of risks associated with doing business in Ethiopia. Among them are possible power outages, political instability and threats of terrorism, especially near the borders with Eritrea and South Sudan.

Interestingly, about 90% of Ethiopia's mining industry is already occupied by Chinese investors who moved their business after the ban on mining in China. These companies usually invest through Hong Kong firms, having already invested several billion dollars in the creation of mining farms.^[1]

2021: Giant mining migration from China to Russia

In 2021, Russia became the largest recipient of cryptocurrency mining devices from China after the ban on mining in the Celestial Empire.

Russian mining hosting BitCluster accepted over 5,000 devices within weeks of the mining ban in China, and BitRiver claims to have deployed 1.8 million miners from China over the past months. The company had to reject the offer of a client who wanted to bring another million devices. Many are running out of space.

Notes