Ethiopia Cuts Bitcoin Miner Power by 75% Amid Water Shortfalls

Bitcoin miners relying on green energy in East Africa just hit a major roadblock. The state utility in Ethiopia slashed electricity supplied to data mining operations by roughly 75 percent, leaving these companies with only about 23 percent of their contracted power. This sharp reduction comes as lower water inflows put heavy pressure on the country's hydropower generation capacity.

The state utility pointed to reduced water levels in hydroelectric reservoirs, which generate about 95 percent of the national power output. Officials called the reduction a preventive measure ahead of dry periods, with water levels tracking at least 20 percent below expectations. Even though mining companies accounted for a massive 35 percent of the utility's revenue in the past financial year, public supply must take priority when reservoirs drop.

Market watchers are keeping a close eye on how this operational risk might affect overall network security and miner profitability. At the time of this power cut, Bitcoin trades around 76,850 dollars, down slightly over the past week amid broader macro market pressures.

Traders should watch for updates from the state utility in October, when officials plan to reassess generation capacity and potentially restore power allocations depending on new water year data. This situation highlights the ongoing challenge of relying entirely on weather dependent renewable sources for continuous crypto mining operations.