Cryptocurrency mining company Bit Mining has acquired a 51MW Bitcoin mining facility in Ethiopia for $14 million, according to a CoinDesk report on Friday.
The facility, which is located in Ethiopia, houses around 18,000 Bitcoin mining rigs. This marks the first time that Bit Mining has acquired a mining facility outside of Ohio.
According to Yuwei Yang, chief economist at Bit Mining, the electricity cost in Ohio is at least 70% to nearly double that of Ethiopia.
“With Ethiopia's cheap electricity, we can extend the lifespan of Bitcoin mining equipment that could have been used for 2-3 years in the US,” Yang said.
Bit Mining plans to install its latest mining rigs in the US and older rigs in Ethiopia to maximize profitability.
“This strategy can extend the lifespan of mining equipment by more than two years,” Yang said, adding that it will lead to higher returns for investors and more capital flowing into the company.
Another attraction is Ethiopia's hydroelectric resources, especially the 6,450MW Grand Ethiopian Renaissance Dam (GERD), which is said to be the largest dam in Africa.
However, political instability, such as the civil war, remains a concern.
“We conducted several visits and studies to confirm the regional stability of Ethiopia,” Yang said, and to avoid uncertainties, “we decided to purchase existing facilities instead of building new ones.”
