Libya’s Bitcoin Mining Boom Faces Crackdown Amid Power Struggles
- At its peak, Libya accounted for approximately 0.6% of the global Bitcoin hash rate.
- Electricity costs in Libya are among the lowest globally, estimated at $0.004 per kilowatt-hour due to heavy state subsidies.
- Illegal mining operations reportedly consumed around 2% of Libya’s total electricity output, equating to about 0.855 terawatt-hours (TWh) annually.
- In late November, nine individuals received three-year prison sentences for operating a Bitcoin mining facility in Zliten.
- The Libyan government has intensified crackdowns on illegal mining, linking it to ongoing power shortages and public discontent over rolling blackouts.
Libya’s burgeoning mining sector thrives on subsidized electricity but faces increasing scrutiny from authorities due to its impact on the national grid and public services. The legal status of mining remains ambiguous, complicating enforcement efforts against operators.
With an estimated consumption of around 2% of national electricity output by crypto miners, the government’s crackdown aims to address significant energy strains exacerbated by illegal operations.(Source)
