Africa Emerges as a Global Hub for Bitcoin Mining, with Private and Public Mining Activities Taking Place in Several Countries Across the Continent

Groups of miners have emerged, looking to take advantage of the energy potential in the resource-rich African countries. Below we take a look at some of the leading Bitcoin mining initiatives across the continent

Several African countries are experiencing a surge in Bitcoin mining activities, both private and public. Groups of miners are emerging to capitalize on the energy potential offered by these resource-rich nations. Here's a closer look at some key Bitcoin mining initiatives across the continent:

Ethiopia has quickly become a major player in Bitcoin mining, contributing an impressive 2.5% to the global hash rate. This development follows China's ban on Bitcoin mining in 2021, which prompted many Chinese miners to relocate their operations elsewhere. Companies like Bitmain-backed BitFuFu and BIT Mining have established operations in Ethiopia, drawn by its abundant hydropower and surplus renewable energy capacity.

Other operators in the country include the local group QRB Labs and Hong Kong-based West Point Data, which recently began constructing a 20MW Bitcoin mining facility in Southern Ethiopia. Notably, the Ethiopian government has actively supported the industry, generating over $55 million in revenue through agreements with Bitcoin mining companies over the past 10 months.

Kenya, like Ethiopia, generates a significant portion of its electricity from renewable sources, including hydro and geothermal energy, which makes it attractive to Bitcoin miners. Companies such as Marathon Digital (MARA) have signed deals with the Kenyan government to utilize the country's green energy resources for Bitcoin mining.

Another interesting player in Kenya is Gridless, which is setting up hydroelectric mini-grids in rural areas and using the excess electricity to mine Bitcoin. Established in 2022, Gridless collaborates with HydroBox, an African hydroelectric power company, to operate small-scale, off-grid Bitcoin mining sites in Kenya and three other countries.

In Kenya, Gridless utilizes surplus hydroelectric power from rural mini-grids that would otherwise go to waste, enabling power operators to monetize excess energy. This approach, similar to other projects in Zambia, Malawi, and Nigeria, allows operators to expand their generation capacity and transmission infrastructure. In late 2022, Gridless helped launch the Green Africa Mining Alliance (GAMA).

The Kenyan government has also played a role in attracting Bitcoin miners to the country. In 2022, Kenya's largest electricity provider extended an open invitation to Bitcoin miners to utilize its abundant geothermal energy.

While individual investors may find it challenging to engage in Bitcoin mining due to the high upfront costs and technical requirements, there are some avenues for those interested in getting involved. The Green Africa Mining Alliance (GAMA) has established a GAMA ASIC SEED Program to assist both small and large-scale Bitcoin miners in getting started.

Through the program, interested parties can gain knowledge of suppliers, laws, and energy sources relevant to Bitcoin mining in their respective countries. GAMA also provides a central platform for people to connect and learn about the industry.

Upon applying to the program, participants can obtain ASIC miners at a 'heavily discounted price.' Another option for those unable to set up their own mining hardware is to utilize cloud mining platforms. These platforms offer a convenient way to mine cryptocurrencies without the need for technical expertise or large equipment investments.

Through cloud mining, individuals can mine cryptocurrencies, like Bitcoin, without owning or managing mining hardware. Instead, users pay to rent mining power from a company that owns and operates the necessary equipment and processes.