Ethiopia Cuts Bitcoin Miners' Power Supply by 77% Amid Drought

Ethiopia's state-owned power company Ethiopian Electric Power (EEP) has cut electricity supply to Bitcoin mining companies by 77% compared to previous levels, Bloomberg reported. The move comes as a severe drought worsens due to rising sea surface temperatures near the equator caused by El Niño, reducing water inflow into hydroelectric reservoirs by 20%. EEP initially reduced supply to 75% of contracted amounts, then further to 50%, and now stands at 23% of original levels. The company is prioritizing power for residential and manufacturing sectors. Bitcoin mining companies consume about one-third of Ethiopia's total 9,730MW power capacity, accounting for 35% of EEP's revenue in the previous fiscal year. Currently, 39 mining firms have power purchase agreements with EEP, with 31 currently operational.