Libya’s Bitcoin Mining Boom Strains Power Grid

Libya's cheap power sparked a secret Bitcoin mining surge, now facing a crackdown due to massive grid strain.

Aurelien Sage December 19, 2025 - 3:00 PM

Bitcoin mining rigs operating in Libya using subsidized electricity

Bitcoin News

Libya contributed ~0.6% to global Bitcoin hashrate.
Cheap, subsidized electricity attracted miners.
Government now cracking down due to power outages.

Libya, a North African country rich in oil but plagued by years of political instability, has unexpectedly become a hotspot for Bitcoin mining. Despite the turmoil, one factor has quietly fueled a surge in crypto mining — extremely cheap, subsidized electricity.

With electricity costs among the lowest in the world, both local operators and foreign entities took advantage of this pricing gap. Many set up hidden mining operations, some in residential areas and abandoned factories. These setups consume huge amounts of power, as mining rigs run 24/7 to process Bitcoin transactions and earn rewards.

As a result, Libya was recently found to be contributing around 0.6% of the global Bitcoin hashrate — a surprising figure for a country not usually associated with high-tech industries.

Underground Operations and Rising Tensions

Most of these mining farms operated without official licenses. Their existence only became apparent when the country started experiencing unusual power shortages and blackouts. With energy infrastructure already under strain due to years of conflict and neglect, the hidden demand from mining farms pushed the grid to the brink.

In response, Libyan authorities began a crackdown, raiding mining farms, seizing equipment, and cutting off illegal connections. Officials have stated that these operations are illegal and detrimental to national energy security.

https://twitter.com/Cointelegraph/status/2001918129253781749

What’s Next for Libya’s Crypto Future?

Despite the crackdowns, some experts believe mining activity may continue in secret, as long as electricity remains so cheap and enforcement remains spotty. Others argue that regulation, rather than prohibition, could allow Libya to benefit economically from this industry while maintaining control over its power grid.

For now, the country stands at a crossroads — balancing the promise of crypto wealth with the reality of a fragile energy system.

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