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Can Ethiopia Become a New Mining Hub? — Bitcoin Mining Landscape Overview


Bitcoin Mining

Data, trends, and insights in the Bitcoin mining industry

Lumerin Protocol

Lumerin Blog

Key takeaways:

  • Hut 8 Shifts Focus, Prioritizing Profitability Over Size in Post-Merger Strategy
  • Chinese Bitcoin Miners Seek Opportunities in Ethiopia’s Low-Cost, Renewable Power
  • Georgia’s Bitcoin Mining Expansion Faces Backlash Over Noise and Resource Concerns

Hut 8, the Bitcoin miner that recently merged with US Bitcoin Corp, has appointed Asher Genoot as its new CEO.

He emphasizes a shift in focus, prioritizing profitability over becoming the largest in the field. The company aims to be a low-cost operator, diverging from competitors focused on exahash capacity growth.

Genoot, a co-founder of US Bitcoin Corp, plans to address inefficiencies in the business and make strategic decisions to divest, invest, and grow assets.

With 9,116 bitcoins on its balance sheet, valued at $414 million, maintaining a strong balance sheet is crucial, especially with the upcoming bitcoin halving.

📈 Hut 8 stock, traded on Nasdaq, rose 9% following the leadership change.

Chinese Bitcoin miners are turning to Ethiopia, attracted by its low electricity costs and favorable government relations.

Ethiopia’s permission for Bitcoin mining, despite a ban on cryptocurrency trading, has garnered interest. Chinese miners, facing challenges in other locations, are drawn to Ethiopia’s low-cost power and potential for foreign-exchange earnings.

However, the move is not without risks, as past shifts in government attitudes toward Bitcoin mining have affected miners in other countries. Additionally, almost half of the country’s population lacks access to electricity.

On the other hand, Ethiopia’s climate and renewable energy sources position it as an appealing option for Chinese miners seeking a strategic alternative.

Ethiopia’s political and economic environment, along with its ties to China, make it a unique opportunity for Chinese Bitcoin miners, potentially rivaling established hubs like Texas.

A proposed bill in Georgia aiming to support the state’s growing Bitcoin-mining industry has encountered opposition due to concerns about noise and resource consumption by local crypto-mining operations.

Sponsored by Rep. Scott Hilton, the bill includes granting sales tax exemptions on mining equipment, specifying legal locations for mining centers, and prohibiting local noise limits specific to these centers.

However, lawmakers from both parties, environmentalists, and officials raised issues about noise pollution, strain on power resources, and potential environmental impacts.

The proposed legislation faces criticism from both environmental advocates, who argue it contradicts the shift toward clean energy, and the director of the securities and charities division, who warns it could hinder investigations into potential fraud within the cryptocurrency industry, posing challenges for investor protection.

The bill’s fate remains uncertain as stakeholders express concerns over its broad scope and potential consequences.

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