By 2025, Africa is at the forefront of the green energy revolution, leveraging Bitcoin mining as a key strategy. More governments are exploring its integration to enhance electrification, optimize energy grid management, confront persistent infrastructure issues, and capitalize on the economic benefits. However, these developments, along with many others emerging on the African continent, are not isolated events. Conversely, Africa’s contribution to the global Bitcoin mining hashrate is experiencing significant growth, currently representing nearly 4%, as reported by Luxor’s Hashrate Index. This raises the critical question of how this hash power is being utilized and by which entities. Currently, it is worth noting that a considerable number of miners are linked to pools beyond Africa, hosting ASICs—devices utilized for Bitcoin mining—for major Bitcoin miners situated outside the continent. Should this trend continue, it is conceivable that numerous miners and mining pools required to adhere to OFAC lists and other US regulations may be compelled to exclude transactions originating from African nations that are on—or could potentially join—this list. This would undermine a fundamental aspect of Bitcoin as a permissionless currency. In straightforward terms, “hashrate exfiltration” refers to the scenario where a foreign entity or power utilizes a region’s hashrate to advance its own interests, frequently to the detriment of that region. The ongoing discussion surrounding what could be termed the hashrate exfiltration problem extends beyond Africa; it is indeed a worldwide concern.
It is crucial to place this within the African context, serving as a backdrop for those examining the ascent of Bitcoin mining in Africa, particularly through a geostrategic and economic perspective. As we witness the significant advancements in Africa’s transition within the global digital landscape, it is crucial for attentive observers to remain hopeful that governments and policymakers recognize these critical issues and act promptly to tackle them before the opportunity slips away. The legacy of resource extraction in Africa could face a troubling revival with the rise of Bitcoin mining if precautions are not implemented. In Africa, the discussion extends beyond immediate worries regarding potential censorship; it centers on how the continent can leverage Bitcoin as both an infrastructure and a commodity. During an interview Erik Hersman responded to the question by stating, “I don’t think the answer is not to have foreign companies mining [Bitcoin] in Africa.” He asserts, along with many others on the continent, that there are intricacies and a compromise that can be achieved throughout the value chain to tackle the issue on various levels.
Bitcoin’s edge compared to conventional extractive industries lies in its unique payment structure. As Erik noted, it transcends the typical scenario of receiving USD for a nation’s raw materials and resources. Instead, with Bitcoin, African countries “can also be paid in the same commodity [that is, Bitcoin] and therefore get an added benefit as a part of their treasury.” Ethiopia’s Grand Ethiopian Renaissance Dam serves as a compelling case study to support this argument. Despite its significant potential for electrification, the asset was not utilized to its full extent. Bitcoin mining has emerged as a tangible solution, enabling electrification and capitalizing on surplus energy. Ethiopian Electric Power revenues exceeded $100 million in 2025. Furthermore, as Erik concluded in our discussion, “as with any commodity, this is about making sure we capture more of the value inside of the continent, and that the benefit flows down to more people on the continent, too.” As we look towards 2025, it’s important to acknowledge the significant advantages observed in African nations that have adopted Bitcoin mining. These countries are not only receiving payments and accumulating their reserves in Bitcoin, but they are also achieving remarkable progress in sustainable electrification.
Entrepreneurs and builders are strategically focusing on developing products and services while implementing code changes and proposals in pertinent open-source projects that cater to the continent’s requirements. All efforts are directed at maintaining Bitcoin’s status as decentralized and independent Internet Money. Governments and lawmakers in Africa face a complex challenge that requires holistic and sustainable solutions. This issue extends beyond Bitcoin or Bitcoin mining; it encompasses markets, geopolitics, energy independence, and sovereignty. The focus should be on monitoring the situation, highlighting positive case studies, and advocating for more strategically advantageous MoUs and PPEs. A crucial insight is that Bitcoin does not serve as a lifeline for Africa; rather, Africa stands as a lifeline for Bitcoin, contributing to the ongoing narrative of financial freedom and nation-state sovereignty in the 21st century. Africa’s ability to withstand these challenges is poised to establish a global benchmark for developing robust financial and energy systems, paving the way for a future filled with hope and prosperity for everyone.