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Concerns about power outages in Dagestan, Russia as the energy company asks cryptocurrency miners to stop using their mining equipment.

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The power company in Dagestan, Russia has asked people who use computers to mine cryptocurrency to stop using them in the winter. This is because using too much power can cause the electricity to go out and the lights to turn off.

Dagenergo asked mining farm operators in Dagestan to turn off their mining machines in a polite message on Telegram. The person who gave the information wrote:

“Please think about your family and neighbors in Dagestan like you. ” Please stop using the mining [equipment]. “Mining rigs can use too much power and make the technology system stop working. “

The company said that in the winter, there is a very hard situation happening in many areas of Makhachkala.

Makhachkala used to be called Port-Petrovsk. It’s the main city in Dagestan. It has about a million people who live there.

Is Dagestan having problems with crypto mining?

The company said that their study of how much the network was being used showed a big increase in a short amount of time.

Dagenergo explained that this shows the company “can say that the electricity use is from mining farms. ”

The energy company said its experts were working hard to find the farms. It said it had shut down 13 places where people were mining cryptocurrencies in 2023.

Dagenergo admitted that mining technology had become very advanced, making it hard to detect problems quickly. The company asked for understanding.

Therefore, we are asking miners in Dagestan to shut down their rigs when it’s cold. Electricity gives light and warmth in people’s homes.

The company said it appreciated crypto miners for being understanding.

A map of Russia with Dagestan, a republic in the North Caucasus region, shaded in red.
Dagestan, a Russian republic in the North Caucasus region. 

Last August, the Russian power company PAO Rosseti shut down 36 illegal crypto mining operations in Dagestan.

Rosseti said the farm owners were using illegal electricity connections and caused damages worth 157. 95 million rubles (around $1. 8 million)

The power company found a really big farm in Kaspiysk with 1MW. “Rosseti said:”

“This amount of power is like the electricity used by 300 apartments in a residential complex. “

Unauthorized cryptocurrency mining has led to many years of energy issues in the South Caucasian republic of Abkhazia.

Local government groups have recently started doing surprise raids on factories and private homes to stop people from illegally mining cryptocurrency.

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