Georgia targets illegal crypto mining after Mestia power surge

Georgia plans to install electricity meters across Mestia after officials blamed illegal crypto mining for heavy power use, grid pressure and repeated outages.

Vice Prime Minister Mamuka Mdinaradze said illegal crypto mining has become one of the main energy problems in Mestia. He said the activity is putting pressure on the local electricity supply and damaging the wider power system.

According to Mdinaradze, electricity use in Mestia reached 133 million kilowatt-hours in 2025. He said a comparable municipality would normally use about 10 million kilowatt-hours.

New meters will track excess consumption

The government plans to install meters across villages and settlements in the Mestia municipality. Officials said the goal is to find the exact sources of large electricity use and stop hidden mining operations.

Mdinaradze said electricity in Svaneti will remain free for consumers up to a fixed limit. Users who go above that limit will face tariffs under the new system.

He said the measure is not aimed at ordinary households. The stated goal is to detect illegal and hidden electricity use linked to crypto mining.

Law enforcement agencies have also been asked to support the metering process. They will help identify large-scale illegal use and respond to any obstruction.

Officials cite grid strain and public losses

Mdinaradze said grid overload has weakened the quality of electricity supply in the area. He said outages have affected both local residents and tourism businesses in Mestia.

The government estimates annual losses of 20 million to 25 million lari from unlawful power use. That is equal to about $7 million to $9.4 million, based on the figures cited in the report.

The vice prime minister also said the cost is not limited to the region. He argued that power users across Georgia carry part of the burden through electricity payments.

Mestia sits in the Svaneti region, where free or cheap electricity has helped attract miners. Georgia’s hydropower resources have also made the country attractive to legal and illegal mining operators over the years.

Georgia’s mining history shapes the debate

Georgia has long had a role in Bitcoin mining because of low power costs and hydropower access. Bitfury opened a 20-megawatt mining facility in Gori in 2014, making the country one of the early hubs for industrial Bitcoin mining.

More recent local reporting has shown that crypto data centers still use a large share of electricity in Georgia. One report said industrial data centers, mainly engaged in mining, consumed 556 million kilowatt-hours from January to September 2025.

As previously reported by crypto.news, other countries have also moved against illegal mining tied to power theft. Thailand seized Bitcoin mining rigs in 2025, while Russia launched a mining equipment registry to track unlicensed operators.

Georgia’s latest move now brings that enforcement trend to Mestia. The key test will be whether meters can separate normal household use from large hidden mining activity without disrupting residents who rely on free electricity within legal limits.