Ethiopia Cuts Power to Bitcoin Miners Amid Hydropower Strain

Ethiopia's state power utility has drastically reduced electricity supplied to Bitcoin miners, cutting deliveries to just 23% of contracted levels due to a severe strain on the country's hydropower system. The move by Ethiopian Electric Power (EEP) comes after reservoir inflows dropped by 20%, forcing the company to prioritize households and manufacturers over energy-intensive mining operations. EEP CEO Ashebir Balcha stated that the utility initially lowered electricity deliveries to miners to 75% of contracted amounts before further reducing them to 50% and eventually 23%. The decision is a preemptive measure to manage supply during a dry period, with incoming water levels tracking well below expectations. The company plans to reassess reservoir and electricity conditions in October, with further cuts to mining supply or restrictions on electricity exports to neighboring countries possible if water levels do not improve. Bitcoin miners have become a major customer for Ethiopia's electricity, consuming almost one-third of the nation's total output and generating 35% of EEP's revenue in the previous fiscal year. Data mining alone produced 50.