Georgia is intensifying its fight against unauthorized cryptocurrency mining by rolling out new electricity meters across villages in the northwestern Mestia region. Data from 2025 reveals that Mestia consumed 133 million kilowatt-hours (kWh) of electricity, a figure more than 13 times higher than that of other municipalities of comparable size. Officials attribute this extreme discrepancy to widespread, unregulated cryptocurrency mining operations that draw significant power without proper metering or payment.
The Georgian government estimates that illegal mining activities cost the national power grid between $7.5 million and $9.4 million annually. Vice Prime Minister Mamuka Mdinaradze called illegal crypto mining one of the main energy problems in Mestia, saying that grid overload has weakened the quality of electricity supply and caused repeated outages affecting residents and tourism businesses.
The new electricity meters are designed to provide real-time consumption data, making it far more difficult for miners to bypass billing systems. Law enforcement agencies are coordinating with utility companies to identify properties where consumption spikes indicate mining activity. Once flagged, these locations can be inspected and, if necessary, disconnected from the grid. Mdinaradze emphasized that electricity in the Svaneti region will remain free for consumers up to a fixed limit, but users exceeding that limit will face tariffs under the new system.
Georgia has long been a destination for cryptocurrency miners due to its low electricity prices and abundant hydroelectric power. The country hosted Bitfury’s 20-megawatt mining facility in Gori starting in 2014, and industrial data centers engaged in mining consumed 556 million kWh from January to September 2025. However, the surge in unauthorized mining has strained infrastructure, particularly in rural areas where grids were not designed to handle industrial-scale loads. The Mestia crackdown signals a shift from tolerance to active enforcement, potentially affecting both small-scale hobbyists and larger commercial operations.
