{"id":397301,"date":"2024-02-15T17:51:37","date_gmt":"2024-02-15T17:51:37","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=397301"},"modified":"2024-02-15T18:13:22","modified_gmt":"2024-02-15T18:13:22","slug":"ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership\/","title":{"rendered":"Ethiopia to start mining Bitcoin through new data mining partnership"},"content":{"rendered":"<p>The Ethiopian government is set to begin mining <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> through a new partnership with Data Center Service \u2014 a subsidiary of West Data Group, according to Ethiopia-based Hashlabs Mining CEO <a href=\"https:\/\/twitter.com\/kalkassa\/status\/1758122104271126733?s=46&t=aw6ZR-6aD050XLPVXY8AQA\">Kal Kassa<\/a>.<\/p>\n<p>The partnership was <a href=\"https:\/\/www.linkedin.com\/posts\/ethiopian-investment-holdings_ethiopia-datamining-partnerships-ugcPost-7163867573023928320-Juer\/\">announced<\/a> by the country's sovereign wealth fund, Ethiopian Investment Holdings (EIH) on Feb. 15.<\/p>\n<p>Under the collaboration, the sovereign wealth fund will invest $250 million in establishing &#8220;cutting-edge infrastructure for data mining and artificial intelligence (AI) training operations in Ethiopia.&#8221;<\/p>\n<p>Kassa said the deal includes setting up <a href=\"https:\/\/cryptoslate.com\/bitcoin-mining-difficulty-set-to-hit-record-high-today-amid-us-miner-scrutiny\/\">Bitcoin mining<\/a> operations using Canaan Avalon miners and is part of the country's broader strategy to leverage its technological and energy resources to attract international investment and foster economic growth.<\/p>\n<p>However, the government has yet to confirm the news officially.\u00a0EIH did not respond to a request for comment as of press time.<\/p>\n<p>The news comes amid a spike in miner activity due to the <a href=\"https:\/\/cryptoslate.com\/less-than-10000-blocks-to-the-next-bitcoin-halving-why-grayscale-says-this-ones-different\/\">impending halving<\/a>, which is less than 65 days away and set to reduce mining rewards by 50%. Many miners have already begun <a href=\"https:\/\/cryptoslate.com\/cleanspark-announces-acquisition-of-four-bitcoin-mining-facilities\/\">expansion efforts<\/a> to <a href=\"https:\/\/cryptoslate.com\/marathon-sets-new-record-after-mining-1853-bitcoin-in-december\/\">position themselves<\/a> appropriately.<\/p>\n<h2>Changing regulatory landscape<\/h2>\n<p>The venture is not without its challenges and controversies, particularly concerning the energy-intensive nature of Bitcoin mining.<\/p>\n<p>There's an ongoing debate about the impact of such operations on local electricity supply, especially in a country where energy access remains a pressing issue for a significant portion of the population.<\/p>\n<p>Despite these concerns, the Ethiopian government's move towards regulating &#8220;cryptographic products,&#8221; including mining, reflects a cautious yet optimistic approach to embracing the potential economic benefits of Bitcoin mining.<\/p>\n<p>This regulatory framework aims to ensure that the sector's growth does not come at the expense of the country's energy security or environmental commitments.<\/p>\n<p>The new rules have paved the way for mining companies to set up shop in the country. Recent media reports revealed a <a href=\"https:\/\/www.bnnbloomberg.ca\/chinese-bitcoin-miners-find-a-new-crypto-haven-in-ethiopia-1.2032274\">significant increase<\/a> in Chinese miners moving to the country as part of the BRICS movement.<\/p>\n<h2>Chinese miners<\/h2>\n<p>There has been a notable influx of Chinese miners in Ethiopia over the past few months, drawn by the country's strategic initiatives and favorable conditions.<\/p>\n<p>The trend is part of a larger movement that has seen <a href=\"https:\/\/cryptoslate.com\/europe-and-u-s-may-soon-take-the-lead-in-bitcoin-mining-says-major-chinese-pool\/\">Chinese Bitcoin mining<\/a> operations relocate in response to regulatory pressures at home and the search for cost-effective, regulatory-friendly environments abroad.<\/p>\n<p>Ethiopia's low electricity costs, primarily due to the Grand Ethiopian Renaissance Dam, represent a primary lure for Chinese miners. This factor, coupled with the Ethiopian government's openness to technological investments and its efforts to foster a conducive environment for high-performance computing and data mining, has made the country an attractive destination for these operations.<\/p>\n<p>The dam's role in providing affordable, renewable energy aligns with the miners' needs for sustainable and economically viable power sources for their energy-intensive operations.<\/p>\n<p>The arrival of Chinese miners is underpinned by broader geopolitical and economic considerations. China's increasing involvement in Ethiopia, characterized by significant investments across various sectors, has established a solid foundation for such ventures.<\/p>\n<p>The relationship is further reinforced by Ethiopia's strategic importance to China as a partner in Africa, offering Chinese companies a hospitable environment for expanding their operations, including Bitcoin mining.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ethiopian government is set to begin mining Bitcoin through a new partnership with Data Center Service \u2014 a subsidiary of West Data Group, according to Ethiopia-based Hashlabs Mining CEO Kal Kassa. The partnership was announced by the country&#8217;s sovereign wealth fund, Ethiopian Investment Holdings (EIH) on Feb. 15. Under the collaboration, the sovereign wealth [&hellip;]<\/p>\n","protected":false},"author":1250,"featured_media":397342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,2376],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethiopia to start mining Bitcoin through new data mining partnership<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethiopia to start mining Bitcoin through new data mining partnership\" \/>\n<meta property=\"og:description\" content=\"The Ethiopian government is set to begin mining Bitcoin through a new partnership with Data Center Service \u2014 a subsidiary of West Data Group, according to Ethiopia-based Hashlabs Mining CEO Kal Kassa. 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Under the collaboration, the sovereign wealth [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-15T17:51:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-15T18:13:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/02\/ethiopia-bitcoin.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1792\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Assad Jafri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Assad Jafri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ethiopia-to-start-mining-bitcoin-through-new-data-mining-partnership\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#person\",\"name\":\"Assad Jafri\",\"url\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"caption\":\"Assad Jafri\"},\"jobTitle\":\"Editor & Reporter\",\"description\":\"AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. 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