Georgia Launches Crackdown on Illegal Crypto Mining in Mestia

Authorities in Georgia are moving to curb illegal cryptoc mining activities in the Mestia municipality after officials reported severe pressure on the region’s electricity network. The government plans to install electricity meters across villages and settlements to identify excessive power consumption linked to unauthorized mining operations.

According to government officials, Mestia consumed approximately 133 million kilowatt-hours of electricity in 2025, a figure more than 13 times higher than that of comparable municipalities. The unusually high demand has been blamed on large-scale illegal crypto mining activities.

Officials stated that the excessive energy use has contributed to grid overloads and repeated power outages, affecting both local residents and visitors. Law enforcement agencies have been assigned to locate and investigate illegal mining operations across the region.

The financial impact is also significant. Authorities estimate that illegal mining activities have caused annual losses of between 20 million and 25 million lari, equivalent to roughly $9.5 million.

Georgia Seeks Balance Between Mining and Energy Stability

Georgia has long attracted cryptocurrency miners due to its low-cost electricity and favorable tax environment. However, the latest measures signal a stronger effort to protect energy infrastructure while ensuring that legitimate economic activities can continue without disrupting local communities.