Georgia is intensifying enforcement against illegal cryptocurrency mining operations in the Mestia region, with Vice Prime Minister Mamuka Mdinaradze announcing "decisive steps" to combat unlawful activity that has severely strained the country's power infrastructure.
The scope of illicit mining in Mestia has reached crisis levels. In 2025, the municipality consumed 133 million kilowatt-hours of electricity—more than 13 times the typical consumption of a similarly sized district, which normally uses approximately 10 million kWh. The unauthorized mining operations have inflicted estimated damages of 20-25 million lari (approximately $7.5-9.4 million) on the regional energy system, according to Georgian authorities.
The power grid overload has cascading effects across the local economy. Quality of electricity supply has deteriorated, triggering blackouts that harm residential consumers, local businesses, and the tourism sector. Georgian officials contend that citizens nationwide are effectively subsidizing the damage through artificially elevated electricity bills, with each household paying approximately 1.5 lari extra per billing statement as a result of the strain on national infrastructure.
To address the crisis, authorities are deploying meter installation across Mestia at both household and municipal levels. This metering infrastructure is intended to identify consumption anomalies and track illegal mining operations more effectively, providing a technological foundation for sustained enforcement going forward.