What Happened

Ethiopia has slashed electricity supply to Bitcoin miners by 77% as the country faces a hydropower crunch. The state-owned power utility is redirecting energy from miners to households and industrial users after water levels dropped in major reservoirs, cutting hydro generation capacity.

Mining’s Share of Revenue

Last year, Bitcoin mining firms brought in 35% of the state power company's revenue. With the new restrictions, the government is shifting one of its biggest consumer segments—miners—so it can prioritize basic demand from homes and manufacturers.

Why the Move

With less water flowing into reservoirs, Ethiopia’s hydroelectric output has taken a hit, forcing the government to rethink its energy priorities. Power-hungry mining operations are now getting squeezed so more electricity can go to sectors that are seen as socially and economically critical.