Cryptocurrency mining is reportedly booming in Georgia resulting from inexpensive electrical energy costs and the legalization of the trade.
Based on official statistics, mining corporations at the moment use about 5% of {the electrical} power generated within the South Caucasus nation.
Georgia mining farms practically double electrical energy utilization
Cryptocurrency mining in Georgia is experiencing report progress, as evidenced by a big improve within the sector’s electrical energy consumption, native media revealed.
Based on a report on the Enterprise Georgia portal, electrical energy utilization by giant knowledge processing facilities is rising quickly.
This computing facility is primarily positioned in Tbilisi and Kutaisi Free Financial Zone and is primarily engaged in minting digital currencies.
The output of corporations concerned in digital forex actions tripled final yr, the financial information company introduced on Tuesday.
Based on figures offered by the Georgian Nationwide Vitality and Water Provide Regulatory Fee (GNERC), 675 million kWh of electrical energy was consumed from January to November 2025, now accounting for five% of the nation’s complete consumption.
The area’s Russian-language on-line newspaper Vesti Kavkaza estimates that that is nearly 80% extra electrical energy than it used the earlier yr.
Analysts attribute this upward development to a number of elements, together with rising digital asset values in 2025, comparatively low electrical energy costs in former Soviet republics, and the Georgian authorities’s efforts to legalize and regulate the sector.
Whereas the worth of Bitcoin (BTC), the cryptocurrency with the biggest market capitalization, reached an all-time excessive of over $126,000 in October, Georgia’s low-cost power and pleasant laws satisfied mining large Bitfury to start out operations within the state.
Who consumes probably the most energy amongst miners?
With 403 million kWh of electrical energy, AITEC Options is the biggest shopper amongst knowledge middle operators. The corporate operates the Guldani facility in Georgia’s capital Tbilisi, the place Bitfury beforehand mined.
Texprint, which operates in Kutaisi Free Financial Zone, is the second largest electrical energy shopper. It used 135 million kWh from January to September.
TFZ Service LLC ranks third with 104 million kWh. This explicit firm shouldn’t be immediately engaged in mining cryptocurrencies, nevertheless it provides electrical energy to mining corporations working within the Tbilisi Free Industrial Zone.
Two different corporations are within the prime 5, in response to particulars from Enterprise Georgia. ITLab consumed 24.6 million kWh and Information Hub accounted for 7.2 million kWh.
Rising electrical energy use in mines poses challenges for regional nations
Georgia permits companies and people to freely mine cryptocurrencies, and has maintained tax incentives since 2019, however laws adopted in 2023 will improve oversight on this space.
The nation produces nearly all of its electrical energy utilizing hydropower, with as much as 80% of the electrical energy generated within the nation coming from hydropower vegetation that also meet demand.
Nonetheless, the coin minting growth in the remainder of the previous Soviet Union area is inflicting power shortages resulting from elevated electrical energy consumption, creating complications for native and nationwide authorities.
The Russian Federation legalized cryptocurrency mining on the finish of 2024, however has since banned cryptocurrency mining operations in about 12 areas.
Unlawful actions similar to mining utilizing stolen electrical energy can be punished with giant fines and jail phrases. A invoice introducing new measures has simply been launched in Parliament.
Elsewhere, Tajikistan threatened unlawful cryptocurrency miners with related penalties by an modification accredited by parliament late final yr.
In November, Kyrgyzstan shut down all cryptocurrency mining farms working on its territory, primarily resulting from rising energy shortages throughout the chilly winter months.
Kazakhstan, then again, has largely managed to beat this downside by rising electrical energy costs for crypto farms and introducing stricter laws for the trade.
