Ethiopia Plans Government-Backed Bitcoin Mining

Instead of outsourcing the sector entirely to foreign firms, the government is now considering a model where crypto mining becomes part of its long-term economic toolkit. The shift was outlined by Prime Minister Abiy Ahmed during a recent policy forum, where he described plans to turn Ethiopia’s surplus renewable power into a new source of state revenue and digital capital.

Turning Power Generation into Digital Output

Ethiopia’s strategy starts with energy, not crypto. The country has spent years building large-scale renewable projects, leaving it with periods of excess electricity generation. Rather than letting that capacity sit idle, policymakers now see Bitcoin mining as a mechanism to convert unused power into globally liquid assets.

Unlike previous arrangements that focused on attracting foreign miners, the new approach suggests direct government participation. The initiative is expected to be coordinated through Ethiopian Investment Holdings, signaling that crypto mining could be treated similarly to other strategic investments overseen by the state.

Officials have framed the move as part of a broader push to modernize the financial system, expand digital infrastructure, and improve access to capital markets. In that context, Bitcoin is being evaluated less as a speculative asset and more as a financial instrument tied to national development.

From Cautious Regulation to Strategic Adoption

Ethiopia’s relationship with crypto mining has not been linear. Low electricity costs previously attracted a wave of international operators, forcing regulators to step in last year and pause new licenses as pressure on the power grid increased. That experience appears to have reshaped policy thinking.

Rather than abandoning the sector, the government now seems intent on controlling it more directly. By aligning mining activity with national energy planning and sovereign investment structures, Ethiopia aims to capture more value while managing infrastructure risks.

Existing partnerships highlight why the country remains attractive. Mining firms have already collaborated with Ethiopian Electric Power, and interest from overseas operators continues despite tighter oversight.

Ethiopia Joins a Global Trend

The move places Ethiopia within a growing circle of governments experimenting with state-backed Bitcoin mining. Research from VanEck shows that sovereign involvement in mining is expanding, particularly in energy-rich countries looking for alternative revenue streams.

Nations such as Bhutan, El Salvador, and the United Arab Emirates have already integrated mining into state strategy, while others are exploring similar paths. In this context, Ethiopia’s pivot reflects a wider reassessment of Bitcoin as a strategic asset rather than a fringe technology.

Beyond Profits

What sets Ethiopia apart is the narrative around purpose. The government is not presenting mining as a short-term cash generator, but as a way to link renewable energy, digital infrastructure, and financial inclusion into a single framework.

As global attitudes toward crypto evolve – influenced in part by more favorable rhetoric from Donald Trump – Ethiopia appears determined to move early, positioning itself as a state-level participant in the digital asset economy.

If implemented, the strategy would mark a shift from hosting miners to becoming one, turning electricity into Bitcoin and policy into long-term digital leverage.