Bitcoin mining, a intricate activity that requires adding data to the blockchain, has been the subject of complaints. While this is likely a lucrative profession for some, it does impact the local power grid.

Some estimates say it takes up to 155,000 kilowatt-hours (kWh) of electricity to mine a single coin, and each transaction requires approximately 851 kWh, which is equivalent to a month’s electricity supply for the average U.S. household.

The threat from bitcoin mining is global, with many national and local economies feeling the pinch. For example, Tenaga Nasional Berhad, Malaysia’s national electricity supplier, reported losses of over 440 million Ringgit (approximately $101 million) due to mining-related electricity theft. This figure comes on top of a reported seizure of electrical items related to bitcoin mining worth $500,000.

Local reports say thefts have been affecting TNB for years

According to a report by The Star, Tenaga Nasional Berhad is bleeding Bitcoin mining thefts as of 2020. According to Comm Datuk Seri Mohd Shuhaily Mohd Zain, the company was incurring increasing losses year by year.

The executive added that in 2020 alone, the company lost RM5.9 million, which increased to RM140.4 million a year later. This was followed by losses reaching RM124.9 million in 2022; in 2023, they increased to RM67.1. This year, the losses stand at RM103 million and counting.

As of today, the market cap of cryptocurrencies stood at $2.4 trillion. Chart: TradingView.com

Bitcoin mining continues to impact local supplies

TNB and local authorities say the losses date back to 2018 and are related to illegal mining activities. TNB reported in another separate article that losses between 2018 and 2023 amounted to more than $755 million.

Though cryptocurrency mining only a compact part of Malaysia’s total consumption, it has a significant financial impact. In addition to TNB’s losses, over $500,000 worth of electrical equipment related to illegal mining activities was confiscated.

The government’s seizure of these electrical appliances is part of a Malaysian tax evasion campaign involving various cryptocurrency-related parties. The Malaysian Criminal Investigation Unit plans to investigate the thefts and factors contributing to the rising trend of losses.

How does Bitcoin mining affect electric companies?

Bitcoin mining is a intricate activity that involves adding recent data to the blockchain, but it requires a lot of power. In exchange for Bitcoin, an individual or company must solve a intricate mathematical problem to “mine” or acquire Bitcoin.

However, experts say that this process requires a lot of computing power and energy. In many countries such as Malaysia, the demand for electricity often tempts people to evade payments and commit crimes.

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