Key Notes
- Cryptocurrency mining operations in Iran now consume approximately 2,000 megawatts of electrical power daily.
- Illegal mining activities dropped consumption by 2,400 MW during recent internet outages, revealing massive scale.
- Authorities seized over 240,000 mining devices and offer rewards up to $2,300 for reporting illegal operations.
Currently, Iran is experiencing frequent power cuts due to its summer season and has a significant electricity deficit. Mohammad Allahdad, deputy director of Iran’s national power company Tavanir, said on July 29 that cryptocurrency mining is responsible for 15–20% of the country’s current power deficit.
Allahdad reported that crypto mining operations in the country now consume close to 2,000 MW of electricity, equivalent to the combined output of two Bushehr nuclear reactors—one of the country’s major atomic plants.
While crypto mining accounts for about 5% of Iran’s total electricity consumption, Allahdad called its contribution to the deficit “significant and alarming.” He warned that such operations risk triggering voltage drops, fuse failures, and even fires.
“Crypto mining devices produce intense heat. We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes,” Allahdad said.
Illegal Crypto Mining Fuels Iran’s Summer Power Crisis
The pressure on electricity infrastructure has become acute as Iran faces one of its hottest summers on record. Air conditioning, agriculture, and industry have pushed overall demand to record levels, with recent figures topping 70,000 MW nationwide. Blackouts and outages have become common, fueling public frustration.
“Using power for crypto mining during high demand days is not only illegal and unethical, but also harmful,” Allahdad said.
A nationwide internet outage—which authorities linked to the recent conflict with Israel—provided a window into the scale of illegal mining. During the blackout, power consumption reportedly dropped by 2,400 MW. Tavanir attributed the drop to the sudden shutdown of over 900,000 illicit mining devices.
Now, Illegal Crypto Mining is a National Security Issue
Authorities say illegal mining farms often operate out of abandoned homes, empty shops, and industrial properties. Identifying these locations is difficult, according to Allahdad, especially in large industrial areas. He noted that public cooperation has been key to finding illegal sites, with Tavanir offering rewards of up to 200 million tomans (about $2,300) for tips that lead to shutting down these operations.
Iran’s crypto mining crackdown has accelerated since last year. More than 240,000 devices have been seized across several provinces, including Tehran, Isfahan, and Kerman, in March.
Tavanir’s CEO, Mostafa Rajabi Mashhadi, highlighted that Iran has some of the world’s cheapest subsidized electricity. “With consumption at new highs, we cannot afford to ignore this; each illegal miner disconnected from the grid is returned to citizens,” he noted.
The remarks from Tavanir’s executives come as the energy industry continues to wrestle with the dual challenges of rising domestic energy use and the disruptive impact of unauthorized crypto mining. This situation worsened after the conflict between Iran and Israel, when the country’s largest exchange, Nobitex, was hacked. The attacks on infrastructure and subsequent supply disruptions have further highlighted the fragility of the network and intensified the strain of illegal crypto mining activities in the region.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
