Georgia Cracks Down on Illegal Crypto Mining in Mestia Amid Rising Electricity Costs
Georgia targets illegal crypto mining in Mestia crackdown: Report

Image: Cointelegraph
Georgia's Mestia Municipality faces a crackdown on illegal Bitcoin mining, which has surged electricity consumption to 133 million kilowatt-hours, causing financial losses of up to $9.4 million annually. Authorities plan to implement metering to identify illegal operations while maintaining free electricity for regulated consumption.
- 01Electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, significantly higher than the average of 10 million kilowatt-hours.
- 02The illegal mining operations have resulted in financial damages estimated at 20-25 million lari, or up to $9.4 million annually.
- 03Authorities will implement metering systems across villages to pinpoint illegal mining sources.
- 04Electricity in Svaneti will remain free for consumers up to a specified limit, aimed at curbing illegal activities.
- 05Georgia's cheap electricity, due to abundant hydropower, has attracted crypto miners, including major player Bitfury.
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In a significant move to address illegal Bitcoin mining, the Municipality of Mestia in Georgia has reported a staggering increase in electricity consumption, reaching 133 million kilowatt-hours in 2025. This figure far exceeds the typical consumption of around 10 million kilowatt-hours for similar regions, leading to financial losses estimated between 20-25 million lari (approximately $9.4 million annually). Mdinaradze, a local official, announced plans to implement metering systems both locally and across settlements to accurately identify the sources of these illegal operations. Despite the crackdown, electricity in the Svaneti region will remain free for consumers up to a designated amount, ensuring that legitimate users are not adversely affected. Georgia has become a hotspot for Bitcoin mining due to its low electricity costs, driven by plentiful hydropower resources from the Caucasus Mountains. The country has also fostered a favorable environment for crypto mining through tax incentives, including free industrial zones and VAT exemptions for certain activities. Notably, Bitfury, one of the first major Bitcoin mining companies, established operations in Georgia with its 20-megawatt Gori Data Center back in 2014.
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The crackdown on illegal mining is expected to reduce electricity consumption and financial losses in Mestia.
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