How deeply involved is Iran with Bitcoin mining?

Iran’s relationship with crypto goes back to when the country was trying to sidestep the U.S. sanctions by relying on new methods to improve trade.

But what initially began as a bid to improve self-reliance for the country’s economy has morphed into an energy crisis, partially caused by digital assets. 

While it’s unclear how much Bitcoin is mined in the country per year, Iran’s mining hashrate was at its highest in 2021, estimated between 4% to 8%. 

U.S. sanctions imposed on the country targeted oil exports and Iranian financial institutions, limiting revenues from one of Iran’s most valuable natural resources. In response, Iran turned to Bitcoin mining as a way to realize profits from its oil.

In 2019, the country officially recognized crypto-assets mining. Under the new government scheme, miners had to declare themselves, pay an electricity tariff for their mining, and sell all their mined Bitcoin to the Central Bank of Iran. 

Coronavirus pandemic prompts blackouts, Bitcoin mining identified as root cause

Multiple blackouts in the city of Tehran due to rising temperatures shifted focus to the region’s extensive mining operations. Iran’s mining was identified by Elliptic researchers to account for 600 megawatts of electricity, equivalent to 10 million crude barrels of oil per year. Iran’s state energy agency warned in a statement in October 2021 that illegal cryptocurrency mining operations would account for 10% of power outages in the winter season.

Not all of the oil used went towards Iranian bitcoin mining, as per a report by the National Council of Resistance of Iran. A sizeable portion of Iran’s oil was identified to be used for Chinese bitcoin mining operations, an activity which Iran recognised as part of the licensed enterprises, the rest pegged as illegal and to be handled by Iran’s Islamic Revolutionary Guard Corps. 

Iran today: currency devaluation, more energy crunches

In 2024, more power outages occurred, again sparking a renewed focus on the country’s Bitcoin mining operations, especially those conducted illicitly and without licensing. Severe heat waves in August created an energy crisis that forced the government to close government offices, schools, and universities. 

Then again, the current U.S.-Iran conflict affected mining operations in 2025 pulling the country’s involvement with digital assets into view again. Despite a nationwide crackdown on mining, the overall Bitcoin mining hashrate remained steady until U.S. strikes on an Iranian nuclear facility led to a 15% drop from 943 H/s. This sparked a theory on social media that the country’s Bitcoin mining operations are located in the mountains, where some or all of Iran’s nuclear sites were located.