Ethiopia is gaining attention as an ideal location for Bitcoin mining, particularly among Chinese companies seeking reliable and cost-effective energy sources. The activation of the Grand Ethiopian Renaissance Dam has significantly boosted the country's power supply, with expectations for further increases as the dam reaches full operational capacity.

This surge in energy availability is coupled with Ethiopia's low electricity costs, which are among the lowest globally. Importantly, the majority of this energy comes from renewable sources, aligning with the Bitcoin mining industry's need for sustainable power solutions amidst environmental concerns.

Chinese miners, displaced by their government's crackdown on cryptocurrencies, have identified Ethiopia as a suitable destination. Their search for affordable energy and a politically stable environment has led to 19 out of 21 electricity supply agreements in Ethiopia being signed with Chinese firms.

The relationship between China and Ethiopia, characterized by significant Chinese investment and financial support, provides a backdrop of economic partnership that facilitates this migration of mining operations. China's role as Ethiopia's primary foreign investor and creditor, along with upgraded bilateral ties, offers a layer of security for these ventures.

However, Ethiopia's geopolitical challenges and its need for international alliances present potential obstacles. The country's disputes with neighbors and its efforts to secure access to the ocean come at a time when Ethiopia is also dealing with the aftermath of a civil war and the burden of debt default.