Ethiopia Cuts Bitcoin Mining Power by 75% Due to Hydro Shortage

Ethiopia Slashes Power to Bitcoin Miners Amid Hydroelectric Shortage

Ethiopia has reduced the electricity supply to Bitcoin mining companies by 75% due to decreased water inflows into its hydroelectric dams. The move comes as the country faces a shortage of hydroelectric power.

Bitcoin mining is a process that uses large amounts of electricity to validate transactions and produce new bitcoins.

Key Details from the Bloomberg Report

• The power supply cut is equivalent to a three-quarters reduction for Bitcoin miners.
• Bitcoin mining operations consume almost one-third of Ethiopia's total electricity production of 9,730 megawatts.
• These miners accounted for 35% of the revenue for Ethiopian Electric Power Corp in the past financial year.

Impact on Ethiopia's Energy and Revenue

The reduction in power to Bitcoin miners affects a significant revenue source for Ethiopian Electric Power Corp. Since miners use a large portion of the national power output, the shortage could influence the company's finances and the broader energy supply in the country.

Source of Information

• Bloomberg Crypto

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