Energy Crisis Forces Angola to Ban Crypto Mining

Energy Crisis Forces Angola to Ban Crypto Mining

Angola turned off the power to crypto mining operations in April 2024-not because it hates Bitcoin, but because its hospitals were running on generators while mining farms ran 24/7 on stolen grid electricity.

Why Angola Banned Crypto Mining

Angola’s national grid can only produce 5,500 megawatts of electricity for a population of 39 million. That’s less than 420 kWh per person per year-ten times lower than the global average. Meanwhile, illegal crypto mining operations were sucking up 15% of the country’s total power during peak hours. Some mining farms used more electricity than entire neighborhoods. In Luanda and Benguela, transformer explosions became common as overloaded lines failed under the strain. One mining center in Sambizanga was drawing as much power as 300 homes. When the local clinic lost power for six hours during a child’s emergency surgery, the government had to act.

The ban wasn’t about ideology. It was about survival. The Ministry of Energy and Water calculated that mining one Bitcoin in Angola consumed 1,440 kilowatt-hours-40 times more than a traditional bank transfer. The energy cost wasn’t just financial; it was human. Hospitals, schools, and water pumps were going dark while ASIC miners hummed in backrooms, cooling units running full blast.

How the Ban Worked

The law was simple: any mining operation using more than 10 kilowatts of continuous power without government approval became illegal. Industrial-scale farms-those using over 100 kilowatts-were the main target. That’s about the power draw of 100 home air conditioners running nonstop. The government didn’t need to ban all crypto. It just needed to stop the energy theft.

Enforcement started with smart meters. The National Electricity Agency (INE) scanned grid data for unusual 24/7 power spikes. A home might use 5 kW during the day and 1 kW at night. A mining rig? 150 kW, every hour, every day. That pattern screamed “illegal.”

Then came the raids. In August 2025, during Interpol’s Operation Serengeti 2.0, Angolan police, trained in thermal imaging and power signature analysis, hit 25 mining centers. They seized 8,300 ASIC miners, 15,000 graphics cards, and 45 illegal power stations-some wired directly into high-voltage lines, bypassing meters and safety systems. The total value: $37.2 million. All 60 arrested individuals were Chinese nationals, who had been drawn to Angola by electricity as cheap as $0.03 per kWh-less than half the global average.

The Human Cost of Mining

Before the ban, miners complained about unreliable power. They’d lose 40% of their equipment to sudden outages. To keep running, they bought diesel generators-raising their costs by 35%. Some paid $500 a month in bribes to utility inspectors just to keep their rigs online.

But the real victims were Angolans. In Benfica, Luanda, small shop owners saw their electricity bills jump 22% in 2023 because the grid was overloaded. In Lobito, miners reported 24-hour blackouts during dry season, forcing them to run generators through the night. In Sambizanga, transformer explosions shut down hospitals. One Reddit user, u/AngolaTech, summed it up: “I saw our clinic running on a generator while mining farms had their own industrial transformers.” That post got over 1,200 upvotes.

Police chase a runaway Bitcoin miner while seized hardware piles up and a clinic uses a generator.

What Happened to the Seized Equipment

The government didn’t just destroy the machines. They inventoried them using blockchain tracking systems provided by Interpol. Machines worth more than $10,000 were auctioned off after 90 days. But most of the 23,300 seized units were too old or damaged to resell.

Instead, the government redirected them. In September 2025, officials announced 65% of the confiscated mining hardware would go to public universities for computer science labs. Another 35% would be used by municipal offices to run e-government services. It wasn’t about profit-it was about repurposing waste into public tools.

Why Renewable Energy Didn’t Save Mining

Angola has one of the highest solar potentials in Africa: 2,200 kWh per square meter annually. But the ban didn’t make exceptions for solar-powered miners. Why? Because even if you used solar panels, you still needed to connect to the grid to stabilize your operation. And any grid connection-even a small one-risked drawing backup power during cloudy days, stealing from households.

The government’s rule is clear: no grid connection. No exceptions. That means a miner would need to run entirely off-grid-huge battery banks, solar arrays covering acres, and no fallback. It’s technically possible. But economically? Not for most. The startup cost for a single 100-kilowatt off-grid mining farm would exceed $2 million. No one’s doing that.

What’s Next for Angola?

The country’s energy crisis isn’t solved. Only 47% of Angolans have reliable grid access. The Cambambe Dam, which supplies 55% of the nation’s electricity, dropped to 38% capacity during the 2023 drought. Hydropower is unreliable. The $4.5 billion Cambambe III expansion-set to add 1,150 megawatts-won’t finish until 2028.

In the meantime, Angola is testing new tools. In July 2025, 200 smart grid sensors were installed to detect the electromagnetic signatures of mining rigs. That means the government can now identify a hidden farm in 72 hours-not weeks.

There’s one crack in the wall: in September 2025, President João Lourenço met with Solax Power to discuss pilot projects for off-grid solar mining. But Energy Minister João Baptista Borges made it clear: “Any future authorization would require 100% off-grid renewable energy with no grid connection whatsoever.”

That’s not a reopening. It’s a narrow, almost impossible door. Only a handful of deep-pocketed foreign investors could ever meet those conditions.

A lone solar-powered miner stands isolated under a giant sun, while people below beg for light.

How Angola Compares to Other African Nations

Angola’s ban is the strictest in Africa. Nigeria lets exchanges operate. Kenya taxes crypto but doesn’t ban mining. South Africa charges miners 15% of their energy use to fund grid upgrades-raising $120 million a year.

But Angola didn’t have that luxury. Its grid was collapsing. Its people were going without. It couldn’t afford to experiment.

The result? Mining activity in Angola dropped from 0.8% to 0.02% of the global hash rate. The 1.2 exahashes lost? Gone. But so were the blackouts at hospitals.

What This Means for Crypto Miners

If you’re looking for cheap electricity to mine crypto, Angola is off the map. So are other African nations with similar grid issues: Zimbabwe, Ghana, and Ethiopia have all tightened controls since 2023.

The real winners? Namibia. It saw a 200% spike in Angolan miners relocating after the ban. But Namibia’s electricity costs $0.12 per kWh-four times higher than Angola’s. Profit margins dropped 60%. Many miners quit.

The lesson? Cheap power without grid stability is a trap. You might save money on electricity-but lose everything to outages, seizures, or legal chaos.

Can Crypto Mining Ever Return to Angola?

Not until the grid is fixed. The World Bank has committed $15 million to help Angola design energy allocation systems that could one day prioritize critical infrastructure-and maybe, someday, regulated mining zones near new solar farms.

But for now, the message is clear: if you’re using electricity that belongs to a hospital, a school, or a family trying to charge a phone, you’re not a miner. You’re a thief.

Angola didn’t ban crypto. It banned theft. And for a country where 15 million people still lack reliable power, that wasn’t just policy. It was justice.

11 Comments

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    Denise Paiva

    January 5, 2026 AT 15:49

    Angola didn't ban crypto mining they banned energy theft and frankly I'm shocked more countries haven't done the same
    People treat electricity like it's infinite but it's not
    When your hospital loses power because some guy in a basement is chasing digital coins you're not a tech pioneer you're a parasite
    And yes I'm aware this sounds like a lecture but someone has to say it

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    Charlotte Parker

    January 6, 2026 AT 18:29

    Oh wow a country actually put people before profit
    How quaint
    Next they'll ban billionaires from buying private islands made of gold
    Meanwhile in the US we're still debating whether a toaster can be taxed
    Angola's got more guts than the entire G7 combined

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    Calen Adams

    January 7, 2026 AT 05:21

    Let me break this down for the crypto bros who think decentralization means they can steal grid power
    ASICs aren't magic boxes they're power hogs
    15% of national grid during peak? That's not innovation that's systemic looting
    And the fact they seized 8,300 ASICs? That's not a raid that's a hardware graveyard
    Real innovation is building resilient grids not exploiting broken ones
    Angola just did the math and chose survival over speculation

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    Meenakshi Singh

    January 8, 2026 AT 15:54

    angola said no to crypto theft and now the whole web3 world is crying 😭
    but like... imagine if you took your neighbor's wifi to stream porn and got caught
    you'd be the villain
    but crypto miners? They're "pioneers" 🤡
    also 37.2 million in seized gear? That's a lot of ASICs with no chill 💀

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    Kelley Ramsey

    January 9, 2026 AT 21:15

    This is so important... I just cried reading about the child’s surgery interrupted by a blackout
    And then I read about the mining rigs running 24/7 with cooling units humming...
    It’s not just unfair-it’s inhumane
    Why do we celebrate innovation that harms the most vulnerable?
    Angola didn’t shut down technology-they prioritized life
    And that’s not a policy-it’s a moral imperative
    Thank you, Angola, for having the courage to say no
    And thank you for repurposing the hardware for schools-what a beautiful act of redemption

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    Michael Richardson

    January 10, 2026 AT 23:13

    Angola banned crypto because they're too weak to handle real tech
    Western countries don't need to be babysat
    Let them starve if they can't keep their lights on
    Bitcoin is freedom
    And freedom isn't free
    It's stolen power and bold choices

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    Sabbra Ziro

    January 12, 2026 AT 05:56

    I think we need to pause and recognize how rare this moment is
    Here’s a country that could’ve gone the easy route-tax it, regulate it, ignore the human cost
    But they chose to see the people behind the statistics
    That child in the clinic? That’s someone’s daughter
    That transformer explosion? That’s someone’s home going dark
    Angola didn’t ban crypto-they chose to stop stealing from the poor
    And that’s a kind of courage we don’t see enough of

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    Krista Hoefle

    January 13, 2026 AT 09:36

    Angola banned crypto? Lmao
    They probably just can’t handle real tech
    Also who even mines crypto anymore? It’s all dead now anyway
    Also the whole thing sounds like a scam
    And why are all the miners Chinese? Suspicious
    Also why is this even a thing??

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    Jessie X

    January 14, 2026 AT 11:27

    Imagine being so desperate for power you're running a clinic on a generator while someone else runs a mining farm with industrial transformers
    That's not a policy failure
    That's a moral failure
    Angola didn't ban Bitcoin
    They just stopped letting it kill people
    Simple
    And right

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    Kip Metcalf

    January 14, 2026 AT 22:52

    Man I used to mine crypto back in 2021
    Now I look at this and feel sick
    It wasn't just about the power
    It was about the people who lost it
    Angola did the right thing
    Even if it cost them some crypto cash
    Some things are worth more than profit

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    Natalie Kershaw

    January 15, 2026 AT 02:07

    Let’s reframe this: this isn’t a crypto ban-it’s a grid justice initiative
    ASICs aren’t evil, but using stolen electricity to run them? That’s the problem
    And repurposing the hardware for universities? Genius
    Turns waste into education
    Angola didn’t kill innovation
    They redirected it toward human outcomes
    That’s not policy
    That’s leadership

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