Iran’s cryptocurrency mining industry is placing additional pressure on a power grid already struggling to meet demand.
A report by the Majlis Research Center estimates that crypto mining operations consume between 930 and 1,200 megawatts (MW) of electricity. During peak summer months, that amount represents roughly 14% of Iran’s electricity deficit, while mining accounts for about 6% of the national shortfall when averaged across the year.
The figures become even more significant during periods of severe electricity shortages. Iran’s state utility, Tavanir, has previously estimated that cryptocurrency mining is responsible for 15–20% of the country’s power deficits.
It has also suggested that illegal mining operations can consume as much as 2,400 MW during major outages.
The heavy electricity demand is particularly important during Iran’s extremely hot summers, when households rely heavily on-air conditioning and the country’s power system faces some of its greatest challenges.
Subsidized Electricity Comes with a Heavy Economic Cost
The electricity consumed by mining operations also creates a significant financial burden.
According to the Majlis Research Center, maintaining mining activities at the reported scale requires approximately 2 billion liters of diesel fuel every year. The resulting cost to the national energy system is estimated at around $1.5 billion annually.
One factor supporting the mining industry is Iran’s heavily subsidized electricity. Low electricity prices make cryptocurrency mining considerably cheaper in the country than in many other parts of the world.
The cost of mining one Bitcoin in Iran has been estimated at approximately $1,300, compared with a reported global average of around $87,000.
These low operating costs can make Iran an attractive location for mining, but they also raise questions about how subsidized energy resources are being used while households, businesses and essential services face electricity shortages.
Crypto Mining Faces Scrutiny Over Political and Global Connections
Iran’s cryptocurrency sector has also attracted attention because of reported connections between mining operations, cryptocurrency addresses and individuals linked to the Islamic Revolutionary Guard Corps (IRGC).
Previous reports have said that connected addresses received more than $3 billion in cryptocurrency inflows during 2025. In September 2026, the US Treasury sanctioned Iran’s BitBank over allegations that it facilitated large Bitcoin transfers to the IRGC.
Iran’s position in the global Bitcoin mining industry has also changed over time. Estimates of its share of global Bitcoin hashrate have ranged from 4.5% to as high as 10–15%, while more recent tracking data puts the figure at around 0.84%.
Overall, the Majlis report highlights the growing tension between cryptocurrency mining and Iran’s limited electricity resources.
As demand for power rises, the country faces the challenge of balancing mining activity with the needs of households, hospitals, factories, and other essential users.
