Iran Cracks Down on Illegal Bitcoin Mining in Energy Crisis
Iran’s energy crisis has spurred a major crackdown on illegal Bitcoin mining. Officials report over 427,000 rigs operating without licenses, drawing about 1,400 MW of power—enough to supply 8,000 homes in early 2025. Hidden in factories and disguised as industrial sites, many farms tap directly into the grid using forged meters.
As the world’s fifth-largest Bitcoin mining hub (4.5% of global hashrate), Iran attributed up to 20% of its power deficit to unauthorized mining. Initial raids shut down 104 illegal farms and seized 1,400 machines. This year, authorities have dismantled 900,000 rigs, cutting consumption by 2,400 MW.
The energy ministry plans further meter inspections and offers informants up to 1 million tomans ($24) per tip-off. Enforcement challenges persist, with some state-linked entities operating with impunity. Traders should watch for sudden shifts in Iran’s mining capacity and potential hashrate volatility as officials tighten regulations.
Neutral
The crackdown will reduce Iran’s mining capacity—about 4.5% of global Bitcoin hashrate—but this shift is unlikely to drive substantial price moves. In the short term, lower hashrate may ease mining competition and slightly reduce network difficulty. Over the long term, displaced miners may relocate, restoring capacity and maintaining market balance. Traders should note potential hashrate volatility but expect minimal direct impact on Bitcoin’s price.