By: Trading view

If you ever imagined a secret, global Bitcoin hotspot, you might not guess Libya. Yet, thanks to some of the world’s cheapest, state-subsidized electricity, Libya’s clandestine mining operations grew to produce an estimated 0.6% of the global Bitcoin hash rate in 2021. This made it a larger contributor than any other nation in Africa or the Arab world, despite its political chaos and frequent power blackouts.

So, how did it become a target for miners like you? The economics are simple: you could buy electricity for as little as $0.004 per kWh. This meant even older, inefficient mining rigs, which would be worthless scrap elsewhere, could turn a significant profit. The legal environment was your other key advantage. While Libya’s central bank banned crypto trading, no clear law explicitly outlawed mining itself, creating a lucrative grey area. Large farms were often set up in abandoned steel factories or warehouses, sometimes even camouflaged with cement to hide heat signatures from authorities.

However, this wasn’t sustainable. As a miner, your constant, high-energy load was pulling an estimated 2% of the nation’s total electricity from the same fragile grid that powers homes and hospitals. With blackouts already a daily reality, your operations became a major public and political issue. Now, authorities are linking the power crisis directly to mining. The legal landscape you gambled on is closing fast. The recent three-year prison sentences for nine miners in Zliten, the seizure of hardware, and high-profile raids on international operations signal a severe and escalating crackdown.

This situation puts you at a crossroads. For now, the government is choosing to stamp out the industry rather than regulate or tax it. If you’re operating in other fragile states with subsidized power, Libya’s story is a crucial case study. It shows you the risks and eventual consequences when an illicit mining boom collides with a national infrastructure crisis.