Energy Crisis Forces Angola to Ban Crypto Mining

When electricity is scarce, governments don’t choose between Bitcoin and light bulbs-they choose light bulbs. That’s exactly what Angola did in April 2024, when it banned all cryptocurrency mining nationwide. Not because it hates crypto. Not because it’s anti-technology. But because its power grid was collapsing under the weight of mining rigs running 24/7.

Why Angola Shut Down Crypto Mining

Angola’s power grid was already stretched thin. With only 5,500 megawatts of total capacity for nearly 40 million people, the country struggled to keep hospitals, schools, and homes powered. Then came the mining farms. By early 2024, illegal crypto operations were siphoning off 15% of the country’s entire electricity supply-enough to power 300,000 households. That wasn’t a side effect. It was a crisis.

The math was brutal. One Bitcoin mined in Angola used 1,440 kilowatt-hours. That’s 40 times more energy than a single bank transaction. Meanwhile, 60% of urban households faced daily blackouts. The government didn’t need a PhD to see the problem: mining rigs were running on stolen power, while children studied by candlelight.

The Enforcement: Seizures, Arrests, and Stolen Grids

The ban wasn’t just a law on paper. It was enforced with teeth. In August 2025, Interpol’s Operation Serengeti 2.0 rolled through Angola with police, energy inspectors, and cyber units. They found 25 illegal mining centers, mostly run by Chinese nationals. They seized:

• 8,300 ASIC mining rigs
• 15,000 graphics cards
• 45 illicit power stations that bypassed the national grid
• $37.2 million worth of equipment

These weren’t hobbyists with a few GPUs in their garages. These were industrial operations. Each ASIC miner pulled 3,200 watts. A single facility could consume as much as a small town. And they were all hooked directly into the grid-no meters, no permits, no safety checks.

The result? Transformer explosions. Blackouts at clinics. Power bills jumping 22% for small businesses. One Reddit user from Sambizanga wrote: “I saw our local clinic running on generators while mining farms used industrial transformers.” That post got over 1,200 upvotes.

How They Caught the Miners

Angola didn’t rely on luck. They built a system. The National Electricity Agency (INE) started scanning smart meter data for unusual 24/7 power use. Any facility pulling over 100 kilowatts continuously got flagged. Police used thermal imaging to spot heat signatures from mining rigs-even through walls. And they launched a whistleblower program: if you reported a mining operation, you got 5% of the seized equipment’s value, up to $50,000.

It worked. Seventy-three percent of the raids in August 2025 came from tips by neighbors, utility workers, even former employees. People were tired of blackouts. They were tired of paying more for electricity because someone else was mining Bitcoin.

What Happened to the Equipment?

The seized gear didn’t go to landfill. The government announced plans to redistribute it-65% to university computer labs and 35% to municipal e-government systems. A university in Luanda now has 120 ASIC miners teaching students about blockchain, AI, and data analysis. A public health office in Benguela uses a cluster of GPUs to process patient records faster.

But there’s a catch. Forty percent of the raided sites used fake permits. Legal battles over ownership dragged on for months. Some machines sat in warehouses, waiting for court approval. Still, the message was clear: if you’re stealing power, you don’t get to keep the tools.

Why Angola’s Ban Is Different

Other African countries have tried taxing mining or limiting it to renewable zones. South Africa charges miners 15% of their energy bill to fund grid upgrades. Kenya lets exchanges operate but doesn’t touch mining. Angola went further. It banned it all-no exceptions.

Even solar-powered mining isn’t allowed. Not because Angola doesn’t have sun (it gets 2,200 kWh/m² annually). But because the government believes any connection to the grid-even a solar inverter feeding back into it-is a risk. The priority isn’t innovation. It’s survival.

The Ripple Effect

Angola’s ban didn’t kill crypto mining in Africa. It just moved it. Namibia saw a 200% surge in mining registrations from Angolan operators. But Namibia’s electricity costs $0.12 per kWh. Angola’s was $0.03. Profit margins collapsed. Many miners packed up and left the continent entirely.

Globally, Angola’s hash rate dropped from 0.8% to 0.02% of the total. That’s 1.2 exahashes gone. The market absorbed it. Bitcoin kept mining. But Angola? It stopped being a player.

What’s Next for Angola?

The government isn’t done. In July 2025, it installed 200 new smart grid sensors that can detect mining activity by its electromagnetic fingerprint. No more waiting weeks to find a rogue farm. Now, they find it in 72 hours.

There’s talk of pilot projects-solar-powered mining, completely off-grid, no connection to the national system. But Energy Minister João Baptista Borges made it clear: “No grid connection. No exceptions.”

The real question isn’t whether mining will return. It’s whether Angola’s grid will ever recover. The Cambambe III hydropower project, set to add 1,150 megawatts by 2028, could change everything. But right now, only 47% of Angolans have reliable electricity. The goal is 85% by 2030. That needs $12 billion in investment.

Until then, mining stays banned. Not because it’s evil. But because the lights still go out.