PETALING JAYA: Bitcoin mining operators running on stolen electricity are reaping in millions at the expense of the public.

       Sources said the syndicates behind the operations were depriving the local communities – including critical sectors such as hospitals which shared the same power source – of their supply.

       The energy intensive mining activities of bitcoin machines that run 24/7, can lead to power outages, damage to electrical appliances and worse – potential fires.

       “Each premises is loaded with mining machines and the operators rely on air conditioning to help cool the equipment.

       “So, their electricity bills can go up to RM40,000 per month for each premises but their profit is just slightly above the amount.

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       “That is why they have no choice but to operate using illegal sources (of electricity),” the sources told The Star.

       The Star learnt that some buildings located near these bitcoin mining premises had experienced power outages, with some even burning to the ground.

       “These bitcoin mining premises often use fuses that do not adhere to safety standards and load, exceeding the capacity of the cables. So, unfortunately for their ‘neighbours’, when the fire breaks out, they are also affected.

       “There were instances where reports were lodged over power outages at dialysis centres and clinics and upon investigation, authorities found that these were due to bitcoin mining premises illegally tapping into the power,” said the sources.

       It is understood that some of these bitcoin mining operators own hundreds of premises.

       “Bitcoin mining” is a process of using sophisticated computer software to try to solve complex mathematical problems to unlock a “key” to produce a new bitcoin.

       The first bitcoin miner to solve the puzzle is rewarded with a bitcoin.

       Only one miner can add a new block to the blockchain every 10 minutes by solving the puzzle and to maintain a competitive advantage, many operators would scale up or upgrade their equipment to run round the clock.

       A study in the United States suggested that a single bitcoin transaction required 2209.41 kilowatt per hour (kWh), which was equivalent to 75.73 days’ worth of power consumed by an average household in the country.

       The bitcoin market is highly volatile, with its value having fluctuated from more than RM277,000 in October to over RM160,000 this month.