BIT Mining сompletes $14.32M deal for 51 MW facility in Ethiopia

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Mikhail Vnuchkov

08.01.2025

BIT Mining сompletes $14.32M deal for 51 MW facility in Ethiopia — BIT Mining expands operations in Ethiopia

The Chinese company BIT Mining, listed on the New York Stock Exchange, has announced the completion of a deal to acquire a mining facility in Ethiopia. The facility includes 18,000 rigs with a total capacity of 51 MW.

BIT Mining revealed its expansion plans in December last year, stating that the deal would proceed in two phases: a one-time cash payment of $2.3 million and the issuance of Class A common shares worth $12.02 million at a price of $0.00005 per share. The deal was finalized on January 7.

Ethiopia is of great interest to BIT Mining due to electricity costs being nearly 70% lower than at its facility in Ohio, USA. According to BIT Mining’s chief economist Yan Yuwei, the company now has a unique opportunity to relocate equipment from the U.S., where it "becomes outdated after two to two-and-a-half years due to the industry’s high competitiveness."

Additionally, Ethiopia's energy standards are similar to China's, enabling the company to redeploy part of its electrical equipment previously used before the ban on Bitcoin mining in China, leveraging the expertise of its engineering team.

Vast potential and challenges

Ethiopia boasts significant hydropower potential, much of it realized through over $8.5 billion in Chinese investments and 3,000 joint projects. China has been instrumental in financing the Grand Ethiopian Renaissance Dam (GERD), which, upon completion, will generate over 5,000 MW.

Cryptocurrency miners are eager to utilize the surplus electricity. According to the Africa Report, nearly 18% of Ethiopia's monthly electricity sales are attributed to Bitcoin mining.

However, the country faces instability, with the government exerting limited control over its northern regions. BIT Mining has faced challenges in convincing its skilled staff to relocate to Ethiopia from the U.S. and China.

The world’s largest investment bank, JPMorgan, has increased its target valuation for the stocks of top Bitcoin mining companies.

Among those receiving updated evaluations are MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN).

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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BIT Mining сompletes $14.32M deal for 51 MW facility in Ethiopia

Vast potential and challenges

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