Ethiopia cut electricity supply to Bitcoin miners to 23% of contracted levels, according to Bloomberg, after the El Niño phenomenon intensified drought conditions in the country and reduced water flows to hydroelectric reservoirs by 20%.
The chief executive of Ethiopian Electric Power (EEP), Ashebir Balcha, confirmed that the company prioritized supply to households and manufacturing industries over mining operations. The reduction was gradual: first to 75% of agreed levels, then to 50% and finally to the current 23%. EEP will review the situation in October and could apply additional cuts or limit electricity exports to neighboring countries.
Bitcoin miners accounted for 35% of EEP’s revenue during the last fiscal year and consume almost a third of Ethiopia’s total electricity output.
The country’s cheap hydroelectric energy had attracted major international companies, including Phoenix Group, which in April 2025 expanded its Bitcoin mining capacity in the country to 132 megawatts.
The energy crisis arrives at a complex moment for the industry: economist Saifedean Ammous argued this week that global electricity consumption from Bitcoin mining and associated capital expenditure may have peaked between 2024 and 2025, pressured by halvings and growing competition from artificial intelligence data centers, which offer miners an alternative route to monetize their infrastructure.
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