Bloomberg reported that Ethiopia has cut electricity supplied to the Bitcoin mining industry by three-quarters after inflows into the country’s hydropower dams fell sharply due to the El Niño weather pattern. The move puts pressure on a sector that had become a meaningful source of income for the state utility.
Data cited in the report showed that Bitcoin mining companies contributed 35% of Ethiopian Electric Power Corp’s revenue in the last fiscal year. At the same time, their power consumption accounted for nearly one-third of the country’s total generation capacity of 9,730 megawatts. That combination highlights how large the mining sector had become within Ethiopia’s electricity system.
The large-scale power curbs could deal a heavy blow to local mining operations, according to the report. The development points to the vulnerability of energy-intensive mining businesses in markets where hydropower output can shift with weather conditions.
According to Bloomberg, Ethiopia has reduced electricity supplied to the Bitcoin mining industry by three-quarters after inflows into the country’s hydropower dams dropped sharply due to El Niño.
Data showed that in the last fiscal year, Bitcoin mining companies contributed 35% of Ethiopian Electric Power Corp’s revenue. Their electricity use accounted for nearly one-third of the country’s total power generation of 9,730 megawatts.
The broad power restrictions could severely disrupt local mining operations.
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