Ethiopia has become an attractive destination for Chinese cryptocurrency mining companies.
Despite the potential risks, the benefits of cheap electricity and favorable climate continue to attract Chinese miners to Africa.
A recent Bloomberg report has revealed that a growing number of Chinese crypto mining companies are opting to set up mining operations in Africa, particularly in Ethiopia.
While both China and Ethiopia officially banned cryptocurrency trading, Bitcoin mining was legalized in Ethiopia in 2022. This has led Chinese companies, which have been looking for new investment opportunities since China's cryptocurrency ban in 2021, to invest in Ethiopia.
The report states that of the 21 companies that have struck deals with the Ethiopian energy monopoly, 19 of them are Chinese.