Bitcoin Mining Faces Crisis as Energy Costs Surge Amid Global Tensions

Bitcoin Mining Crisis: Energy Becomes a Bottleneck Factor

The global energy crisis, exacerbated by geopolitical conflicts, is significantly driving up electricity prices for Bitcoin mining, thereby hindering expansion efforts. In Texas, the largest mining hub in the U.S., network overloads have resulted in electricity prices soaring to 20 cents per kWh, increasing the risk of insolvency for data centers.

Illegal Bitcoin mining in Malaysia has led to electricity losses of $1.1 billion since 2020, resulting in the closure of over 13,000 farms. While mining is rapidly growing in Asia, illegal activities are intensifying the energy crisis and prompting increased raids by authorities. Formerly attractive cold-weather regions like Canada and Iceland are no longer issuing new mining permits, and a complete ban is being discussed in Sweden.

“The global energy crisis – intensified by geopolitical conflicts – is massively driving up electricity prices for Bitcoin mining and slowing down expansion.”

Key Takeaways:

• Electricity prices for Bitcoin mining are rising sharply due to the global energy crisis.
• Texas faces network overloads, leading to prices of up to 20 cents per kWh.
• Illegal mining in Malaysia has caused significant financial losses and farm closures.
• Cold-weather regions are halting new mining permits, with potential bans in Sweden.

Trump's Crypto Empire Shakes: Bitcoin Firm Loses $1 Billion in One Day

American Bitcoin, the crypto-mining firm backed by Donald Trump's sons, lost approximately $1 billion in market value in a single day. The stock, which had surged to $9.31 shortly after its Nasdaq debut, plummeted to a low of $1.90, marking a 38.80% decline by the end of the trading day.

This dramatic drop coincided with early investors cashing out on the day pre-merger shares became available. The decline in American Bitcoin's stock is part of a broader trend affecting other Trump family crypto projects, with the WLFI token also experiencing a significant drop in value.

“The price drops present a great buying opportunity,” Eric Trump stated, encouraging investors to embrace the volatility.

Key Takeaways:

• American Bitcoin lost $1 billion in market value in one day.
• The stock price fell from $9.31 to $1.90, a 38.80% decrease.
• Other Trump family crypto projects are also facing significant losses.

Authorities Target Illegal Bitcoin Miners in Malaysia

In Malaysia, authorities have uncovered 14,000 illegal Bitcoin mining operations over the past five years, costing the national energy provider Tenaga Nasional approximately $1.1 billion. A new task force has been established to combat unregulated miners using drones and power sensors to detect unusual energy consumption.

Miners often hide their operations in abandoned shopping malls and residential buildings, employing surveillance cameras and artificial bird sounds to mask the noise of their machines. The task force aims to address the challenges posed by these illegal operations, which have surged in response to fluctuating Bitcoin prices.

“The operations are clearly organized crime, as they constantly change locations,” said Akmal Nasrullah Mohd Nasir, deputy minister for energy transition.

Key Takeaways:

• Malaysia has identified 14,000 illegal mining operations, costing $1.1 billion.
• A new task force is using drones to monitor illegal mining activities.
• Miners are employing tactics to conceal their operations from authorities.

Russia to Confiscate $30 Million in Assets Related to WEX Corruption Case

The Russian prosecutor's office is seeking to confiscate assets worth over 2.1 billion rubles from former Interior Ministry official Georgi Satjukow, who allegedly accepted bribes in Bitcoin and Ethereum. The assets, valued at approximately $30 million, are linked to corruption involving the WEX cryptocurrency exchange.

Satjukow, who has fled Russia, is accused of using bribes to acquire luxury properties and goods. The first court hearing is scheduled for December 8, 2025, where he and his accomplice will be tried in absentia.

“The assets seized could significantly contribute to the state treasury,” stated the prosecutor's office.

Key Takeaways:

• Russia aims to confiscate $30 million in assets linked to a corruption case.
• Georgi Satjukow is accused of accepting bribes in Bitcoin and Ethereum.
• The first court hearing is set for December 8, 2025.

Sources:

• Bitcoin Mining Krise: Energie wird zum Engpassfaktor
• Trumps Krypto-Imperium bebt: Bitcoin-Firma verliert an 1 Tag 1 Milliarde Dollar an Wert
• Behörden verfolgen in ganz Malaysia im Rahmen einer Razzia gegen illegale Bitcoin Miner das Stromnetz
• Cango Inc.
• DCR Mining startet ein Programm mit hohen Renditechancen und die Möglichkeit bietet, 10.000 $ zu verdienen
• Russland will im Korruptionsfall um WEX Vermögenswerte in Höhe von 30 Millionen Dollar beschlagnahmen.