Ethiopia makes $55 million selling energy to Bitcoin miners: BBC reports

The BBC revealed how Ethiopia is monetizing its surplus hydropower by selling it to Bitcoin miners, generating $55 million and accelerating rural electrification. Bitcoin mining is presented as a replicable model for countries with underutilized energy resources.

Ethiopia has managed to turn an abundant but underutilized resource—its hydroelectric power—into a strategic source of revenue. 

According to a recent BBC report, the state-owned company Ethiopian Electric Power (EEP) has generated $55 million by selling surplus electricity to Bitcoin mining companies. This phenomenon, little explored in traditional cryptocurrency coverage, positions BTC mining not only as a computationally intensive activity, but as a catalyst for energy development in emerging countries.

The key lies in monetizing energy that would otherwise go unused due to a lack of distribution infrastructure. Instead of exporting or wasting it, Ethiopia channels it to mining operations that pay per megawatt consumed. The income obtained is being reinvested in the expansion of the electrical grid., especially in rural areas where more than 60 million people still lack reliable access to electricity. Furthermore, the arrival of foreign companies is boosting technology transfer and local training.

This crypto-mining-based model is raising important questions for other countries with energy surpluses: Can Bitcoin mining become a tool for economic development and critical infrastructure? Ethiopia appears to be charting a course that many will be watching closely.

Bitcoin mining as a driver of energy revenue

Daniel Batten, investment and Bitcoin expert, has underlined the importance of the coverage that the BBC has given to this news in Ethiopia, putting the focus on a phenomenon that has gone unnoticed in the global debate on cryptocurrencies: the use of Bitcoin mining as mechanism to monetize surplus energy. 

In Ethiopia, the state-owned company has allocated 600 megawatts—approximately 11% of its installed capacity—to mining operations, leveraging the power generated by the Grand Ethiopian Renaissance Dam (GERD), one of the largest hydroelectric projects in Africa.

BTC miners, attracted by competitive rates, have installed thousands of machines on the outskirts of Addis Ababa and other strategic regions. According to data collected, Ethiopia already accounts for about 5% of the global Bitcoin hashrate, a figure that has grown rapidly since 2023. Companies Coming from various parts of the world, they lead this expansion, with more than 20 registered companies and 11 operating in the country.

For EEP, the result has been an unexpected but significant source of revenue, raising $55 million in the last year, according to figures confirmed by company spokespersons. These funds not only ease the state-owned company's finances but also open up new opportunities for reinvestment in electrical infrastructure. EEP's CEO himself has stated that the revenue raised is allowing it to expand its energy infrastructure, which will help meet the needs of Ethiopians. 

Thus, in a country where demand exceeds distribution capacity, Bitcoin mining becomes a strategic customer, paying for energy that would otherwise go unused.

Rural electrification: the tangible impact of mining revenues

Beyond revenue, the most relevant aspect of the Ethiopian model is its direct impact on the expansion of the electricity grid. Ashebir Balcha, CEO of EEP, has pointed out that the funds obtained from the sale of energy to miners are being channeled towards rural electrification projects, with priority in areas where access to electricity is limited or non-existent.

Currently, more than 57 million Ethiopians—almost half of the population—live without reliable access to electricity. The lack of transmission infrastructure has historically been one of the main obstacles to the country's economic and social development. In this context, Bitcoin mining not only represents a source of income, but a way to finance structural solutions.

The BBC highlights that part of the resources generated are being used to modernize substations, expand transmission lines, and train local technical personnel. This approach allows crypto mining, often criticized for its high energy consumption, to become an ally of development. The logic is simple: if energy cannot be distributed to homes due to a lack of infrastructure, it can be sold to miners who pay for it, and that revenue can fund grid expansion.

This virtuous cycle redefines the role of Bitcoin mining in emerging economies. Ethiopia isn't subsidizing the activity; it's charging for it and strategically reinvestingThat is, instead of exporting energy at low prices or leaving it unused, it's turning it into capital to electrify millions.

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A replicable model for countries with surplus energy

The Ethiopian case raises a key question for other countries with abundant energy resources but limited distribution capacity: Can Bitcoin mining become a tool for economic development and critical infrastructure? The experience of Ethiopian Electric Power suggests yes, provided a clear regulatory framework is established and local reinvestment is prioritized.

Other countries, including Paraguay, have explored similar models, but Ethiopia stands out for its institutional approach and the scale of its impact. The participation of foreign companies has facilitated technology transfer, the training of local talent, and the modernization of electrical grids. Furthermore, the use of renewable energy—more than 90% of which comes from hydroelectric sources—strengthens the model's sustainability.

Therefore, in a world where energy demand is growing and the pressure to decarbonize is intensifying, models like Ethiopia's offer a pragmatic alternative. Bitcoin mining, far from being a speculative activity, can become an instrument of public policy, rural development, and technological modernization. Ethiopia is demonstrating this, and other countries are already taking note.