For Bitcoin miners, identifying a stable environment with low-cost electricity is essential, especially after Bitcoin’s fourth halving. To effectively manage costs and increase efficiency, miners have increasingly sought economical energy resources globally. With evolving mining policies worldwide, understanding regional regulatory frameworks and energy availability is crucial for strategic decision-making. This article explores current mining policies and energy conditions in major global mining regions to assist miners in navigating the global market.
North America: Stable Policies and Abundant Energy Resources
North America has emerged as one of the world's leading Bitcoin mining regions. Benefiting from favorable financing conditions in the U.S., mining companies have secured premium resources, including bulk-purchasing advanced mining equipment at discounted prices and accessing low-cost electricity through partnerships or even acquisitions of power plants.
Policy-wise, the U.S. has not prohibited cryptocurrency mining. Although the Biden administration proposed a “Digital Asset Mining Energy excise tax (DAME)” several times between 2023 and 2024, the measure never officially took effect. Following Donald Trump's reelection, miners’ outlook has become increasingly optimistic. Trump previously stated during his campaign that he wanted “all the remaining bitcoin to be made in the US,” clearly signaling robust support for the U.S. mining sector.
Although mining regulations vary by state, the overall climate remains supportive. Certain states actively promote mining operations; notably, Texas, a significant mining hub, offers tax incentives for electricity used by miners converting flared natural gas into power, thereby encouraging the productive reuse of otherwise wasted gas. Canada similarly has not banned mining, although certain provinces tightened regulations due to local electricity shortages. The country generally encourages mining’s economic benefits from low-cost hydropower, balancing this with regulatory measures to ensure grid stability.
Due to relatively high residential electricity rates, mining operations in North America typically operate at medium to large scale. In 2024, the U.S. average industrial electricity rate was approximately $0.0815/kWh, with mining clusters concentrated in Texas, Kentucky, Georgia, and New York. Actual mining electricity costs in these areas typically range between $0.03/kWh and $0.06/kWh. Additionally, American miners can hedge market volatility risks using compliant derivatives. Currently, the U.S. accounts for approximately 38% of global Bitcoin mining hashrate.
Canada's average industrial electricity price stands around $0.099/kWh, though rates in hydro-rich Quebec are considerably lower, with large-scale mining farms securing power between $0.05 and $0.08/kWh. According to current data, Canada contributes approximately 7%-8% of the global hashrate. Collectively, North America accounts for roughly 45% of the global hashrate.
Russia and Central Asia: Tightening Policies but Significant Energy Advantages
In Russia and Central Asian countries, policies have increasingly shifted towards formalizing mining activities through regulation rather than outright prohibition. This approach aims to leverage local energy resources economically while maintaining electricity grid stability. Beginning in 2024, Russia gradually introduced an official regulatory framework governing cryptocurrency mining.
Under Russia’s current regulatory scheme, enterprises and individual entrepreneurs can operate mining farms legally once registered. Small-scale personal mining operations consuming less than 6,000 kWh per month are exempt from mandatory registration. However, to safeguard grid stability, Russia imposed complete mining bans across ten regions, with three additional regions restricting mining activities partially during the heating season.
Kazakhstan implemented licensing, taxation, and regulatory frameworks between 2022 and 2023. Similarly, Uzbekistan and Kyrgyzstan tightened licensing requirements and increased electricity prices for miners.
Russia and Central Asia benefit significantly from abundant hydropower and coal resources. According to GlobalPetrolPrices, the average residential electricity price in Russia is approximately $0.06/kWh, with Central Asian countries like Kazakhstan maintaining similar rates, making small-scale mining economically viable. In regions with particularly abundant energy, mining farms enjoy costs as low as $0.03 to $0.06/kWh.
Overall, Russia and Central Asia offer clear energy advantages, though increasingly strict policies and quota limits have forced some miners to relocate. Additionally, Russia restricts foreign miners’ access to its domestic market, complicating foreign investment. The region collectively accounts for around 20% of global hashrate.
China: Strictly Prohibited, Yet Underground Mining Persists
China was historically the global center for Bitcoin mining, previously accounting for over 50% of global hashrate. However, since the strict nationwide prohibition enacted in 2021, crypto mining remains officially banned. Despite these restrictions, data suggests underground mining continues in electricity-rich provinces like Sichuan and Xinjiang. Industry sources estimate that electricity costs for these underground mining operations are below $0.05/kWh, though official data remains unavailable. China’s underground operations are believed to account for around 20% of the global hashrate, despite the strict regulatory environment.
Other Regions: Latin America, Africa, Middle East, Southeast Asia, and Europe
In Latin America, numerous mining operations previously flourished in hydro-rich Paraguay and Uruguay. However, Paraguay increased electricity tariffs for mining activities in 2024, prompting many mining companies to relocate to Argentina or explore energy opportunities near oilfields. Still, U.S.-based companies such as HIVE Digital continue to expand their mining presence in Paraguay through new developments and acquisitions.
Africa has not implemented comprehensive bans on crypto mining, but unstable electricity supply generally limits mining operations to small-scale and dispersed facilities. In recent years, Ethiopia has utilized hydropower generated by the Grand Ethiopian Renaissance Dam (GERD) to encourage mining activity, offering highly competitive electricity rates. Despite these advantages, significant electricity shortages remain a persistent issue.
The Middle East exhibits a complicated regulatory approach towards mining. Iran has legalized crypto mining, authorizing selected power plants for mining purposes, though it prohibits operations during peak energy consumption periods and rigorously enforces penalties on unauthorized mining activities. Countries such as the UAE, through partnerships with U.S.-based Marathon Digital, and Oman, offering favorable tax rates and competitive electricity prices, have also actively attracted mining businesses. Despite abundant and low-cost energy, regulatory uncertainties persist in the Middle East.
Similarly, Southeast Asian countries have not fully banned mining but strictly enforce laws against illegal electricity usage. Malaysia, Indonesia, and Laos have frequently conducted raids and shut down illegal mining operations accused of electricity theft.
The European Union has not prohibited crypto mining, instead favoring regulation aligned with climate objectives. High electricity prices in Germany, France, and the UK make mining largely unprofitable, restricting notable mining operations to Nordic countries like Norway, Sweden, and Iceland, where miners benefit from abundant hydropower and geothermal resources. Europe, excluding Russia, contributes approximately 5% to the global mining hashrate.
As Bitcoin’s halving cycle progresses, inexpensive hydropower, wind, and solar energy sources are becoming the primary choices for mining operations. Mining farms can also utilize cheaper electricity during periods of low energy demand, helping grid operators manage excess power.
Globally, North America has gradually emerged as the center of Bitcoin mining, while Russia, and Central Asia remain significant regions of stable growth. With clearer regulations and continued expansion of clean energy sources, Bitcoin miners will have increasingly diverse choices in the future. Precise decision-making in response to these global developments will remain crucial for profitability.
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Disclaimer: The data cited in this article is derived from publicly available sources. Information may change over time.