Libya has emerged as an unexpected Bitcoin mining hotspot, fueled by its remarkably cheap electricity. Despite an official ban on cryptocurrencies by the Central Bank of Libya since 2018, Bitcoin mining operations have flourished in a legal grey area, transforming the country into one of the most active, albeit unofficial, cryptocurrency mining hubs in Africa and the Arab world.
The primary driver behind this surge is Libya's heavily subsidized energy sector. Electricity prices are as low as $0.004 per kilowatt-hour, making it one of the cheapest locations globally to mine Bitcoin. This allows miners to enjoy unprecedented profit margins as their operations continuously solve complex cryptographic puzzles, securing blockchain transactions in exchange for Bitcoin rewards. Economic analyst Sami Radwan noted that electricity in Libya is virtually free for most consumers, creating an economic environment ripe for exploitation by both Libyan and foreign actors looking to establish mining farms.
In 2021, Libyan miners were estimated to account for around 0.6% of the global Bitcoin hash rate, surpassing every other Arab and African state, and even several European nations. However, this unregulated digital gold rush has come at a steep cost. At its peak, Bitcoin mining consumed an estimated 2% of Libya's total electricity supply, approximately 0.855 terawatt-hours annually. Individual mining sites reportedly draw between 1,000 and 1,500 megawatts, equivalent to the demand of several medium-sized cities. This surge in consumption has further strained an already fragile power grid, triggering widespread blackouts and exacerbating public discontent. Mohammed al-Fawzi, director at the General Electricity Company of Libya, stated that mining operations consume upwards of 2,000 megawatts per transaction, placing a staggering burden on the already strained infrastructure.
The attraction of cheap power has also fostered the involvement of armed factions, most notably militias, who provide secure locations, unimpeded access to electricity and internet infrastructure, and logistical support in exchange for a share of the profits. These groups operate with near-total impunity, further complicating the situation.
Despite the official ban and increasing strain on the power grid, cryptocurrency mining persists, driven by increasing internet penetration and digital awareness. By early 2024, an estimated 6.13 million Libyans, roughly 88% of the population, were online. A 2022 study estimated that over 54,000 Libyans owned cryptocurrency, and that number is expected to rise.
However, Libyan authorities have begun to intensify their crackdown on illegal Bitcoin mining. In November 2025, prosecutors sentenced nine individuals operating Bitcoin mining equipment inside a steel factory in Zliten to three-year prison sentences, confiscating their machinery and ordering the return of illegally generated profits. Raids have swept from Benghazi to Misrata, even netting dozens of Chinese nationals operating industrial-scale farms. In April 2024, authorities in Benghazi confiscated over 1,000 mining devices reportedly generating $45,000 per month.
Despite these efforts, the legal ambiguity surrounding cryptocurrency mining in Libya remains a challenge. While the Central Bank banned cryptocurrency transactions in 2018, no comprehensive legislation has been enacted to regulate the activity. This has created confusion for operators, prosecutors, and citizens alike. Some experts are calling on the Central Bank to issue permits and regulate the activity, rather than leaving a legislative vacuum. Until then, Libya's status as a Bitcoin mining hotspot will likely remain precarious, balancing the allure of cheap power against the backdrop of legal uncertainty and a strained electricity grid.
