One Bitcoin for just $20,000? This country makes it possible

INFBusiness
15.09.2025
News

It's been almost three years since the Bitcoin price slipped below the $20,000 mark in the wake of the FTX crash. Those who had the courage to invest in BTC in the fall of 2022 can now look forward to a return of around 500 percent.
But while many private investors are mourning the loss of this opportunity, mining companies in Ethiopia are entering the crypto reserve currency at similarly favorable prices in 2025, according to a report by Al Jazeera English.
On the outskirts of Addis Ababa, the capital of the East African country, the Bitcoin mining industry benefits from surplus electricity from Ethiopian dams. What distinguishes the mining companies is “the ability to consume large amounts of energy, deploy it quickly, and do so very close to the source.”
However, Ashebir Balcha, CEO of Ethiopia Electric Power, also emphasizes: “We are using Bitcoin for the transition. It is not a permanent venture.” They do not want to disadvantage other domestic industries, but so far, the Ethiopian economy has not been able to utilize the electricity produced.
“After many years, when the distribution grid connects to other industries, energy will likely be reallocated,” believes Vitaly Borshchenko, CEO of the Russian mining company Bitcluster. However, the industry is still booming.
The Grand Ethiopian Renaissance Dam (GERD) is expected to more than double the country's electricity production. Its power output is estimated at 5,150 megawatts, making it by far the largest hydroelectric power plant in Africa as of this year.
Over the past 12 months, Bitcoin mining companies have paid approximately $120 million in fees for using the excess electricity. The Ethiopian government plans to use this revenue to finance the power grid.
The cost of mining one Bitcoin in Ethiopia is approximately $20,000, taking into account hardware, personnel, and other costs, as well as cheap electricity. This means that with a BTC price of $116,000, mining companies are purchasing their coins at a roughly 80 percent discount compared to the spot price.
While the average electricity price in Germany currently stands at $0.32 (€0.27), in Ethiopia it's only around $0.03. This makes the East African country particularly attractive for mining companies. However, a large portion of Bitcoin hashrate still comes from the United States, particularly Texas.

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