BIT Mining acquires mining facility in Ethiopia
BIT Mining, a prominent Chinese Bitcoin mining company, is diversifying its global operations by acquiring a 51-megawatt mining facility in Ethiopia for $14 million. This strategic expansion aims to leverage Ethiopia’s low-cost electricity, which is approximately 70% cheaper than in Ohio, to enhance profitability amidst rising global mining costs.
The new Ethiopian facility will house 18,000 mining machines, providing BIT Mining with a significant operational boost. The company plans to relocate older mining rigs to Ethiopia, where they can remain profitable despite their reduced efficiency.
Ethiopia’s abundant, inexpensive electricity offers a competitive edge, enabling BIT Mining to extend the operational lifespan of its mining equipment, which typically becomes unprofitable in high-cost regions like the U.S. after 2-2.5 years.
Cost-efficient solutions
By moving older machines to Ethiopia, BIT Mining can continue to generate revenue from equipment that would otherwise be retired in regions with higher electricity costs. Ethiopia currently accounts for just 1.5% of Bitcoin’s global hash power, a modest share influenced by political instability and civil conflict. However, BIT Mining’s presence could signal a turning point, potentially attracting more mining operations to the region.
Dr. Youwei Yang, Chief Economist at BIT Mining, highlighted the rising obsolescence of even advanced ASIC miners due to intense competition and rising electricity prices in the U.S., making cost-efficient solutions vital.
Xianfeng Yang, CEO of BIT Mining, expressed optimism about the Ethiopian expansion, emphasizing its role in strengthening the company’s competitive edge and ensuring sustainable growth. This move aligns with BIT Mining’s broader strategy to mitigate rising mining costs and difficulty as global operations expand, particularly in Russia and other favorable regulatory environments. By balancing high-performance facilities in Ohio with cost-effective operations in Ethiopia, the company aims to sustain profitability and maintain a competitive position in the rapidly evolving cryptocurrency mining sector.
