Georgia Cracks Down on Illegal Crypto Mining in Mestia to Ease Grid Strain

Mestia lies in the Svaneti mountains of northwestern Georgia, where residents receive free electricity up to a set allowance. That policy has made the area a hub for unregistered crypto-mining operations. Mining rigs' sustained, heavy power use has overloaded transmission lines and caused frequent outages for residents and tourists, while shifting energy costs to consumers nationwide. The crackdown is aimed at protecting both power-supply stability and the fairness of subsidies.

On June 1, 2026, Georgian Deputy Prime Minister and State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze said the government would install electricity meters in villages and homes across Mestia and order law enforcement agencies to investigate abnormal power use. The area consumed 133 million kilowatt-hours in 2025, about 13 times as much as an administrative district of similar size. Illegal mining causes annual losses of 20 million to 25 million lari, or as much as about $9.4 million.