Ethiopia cuts power to Bitcoin miners as El Niño strains hydropower

Ethiopia has cut electricity supplied to Bitcoin miners to 23% of contracted levels after a 20% drop in reservoir inflows strained the country’s hydropower system. Summary Ethiopia has cut electricity supplied to Bitcoin miners to 23% of contracted levels after reservoir inflows dropped 20%. Bitcoin miners consume almost one third of Ethiopia’s electricity and generated 35% of EEP’s revenue last fiscal year. EEP will reassess conditions in October, with further mining cuts or restrictions on electricity exports possible. Saifedean Ammous said global Bitcoin mining electricity use and capital spending may have peaked in 2024 to 2025. Bloomberg reported on Tuesday that El Niño had intensified dry conditions across the East African country, forcing state-owned Ethiopian Electric Power to reduce electricity supplied to mining operations while prioritizing households and manufacturers. EEP CEO Ashebir Balcha said the utility initially lowered electricity deliveries to miners to 75% of their contracted amounts before reducing them to 50% and eventually 23%. The company plans to reassess reservoir and electricity conditions in October. Further cuts remain possible if water levels do not i...