Iran is renewing its crackdown on illegal BTC block reward miners amid a worsening power shortage that threatens the Middle Eastern nation’s $440 billion economy.
Iran has become a BTC mining powerhouse in recent years, with the miners capitalizing on subsidized electricity and government support for digital assets to evade sanctions. Some studies claim that mining 1 BTC in Iran costs only $1,324 in electricity fees, which is by far the cheapest condition globally.
However, these favorable conditions have made Iran a “paradise for illegal miners,” claims Akbar Hasan Beklou, the CEO of the Tehran Province Electricity Distribution Company.
Beklou revealed that Iran now hosts over 427,000 BTC mining devices, consuming over 1,400 megawatts of power. 95% of these miners are operating illegally, the official said, as reported by local media. He added that these mining farms are often disguised as industrial operations, benefiting from subsidized energy intended for legitimate industries.
The capital, Tehran, has one of the highest concentrations of illegal miners. In the first six months of 2025, authorities uncovered 80 unauthorized mining farms holding 1,300 illegal devices. The grid operator estimated that these operations consumed enough electricity to power 8,000 households.
The operators use underground tunnels, tap directly into power lines, and even bury their devices to avoid detection.
According to the Cambridge Bitcoin Electricity Consumption Index, Iran is the fifth-largest BTC mining hub globally. Blockchain analytics firm Elliptic further revealed that Iran accounts for 4.5% of all BTC mining.
In recent years, Iran has been clamping down on illegal miners, whom it has blamed for some of its power shortages. In a report on November 3, one official claimed that the Iranian government projects local power producers won’t even meet a third of the country’s power demand in 2026. Throughout this year, several provinces, including Tehran, were forced to shut down government offices due to power outages.
BTC mining has been blamed for these shortages. State-owned grid operator, Tavanir, claimed earlier this year that the miners were responsible for up to 20% of the country’s power deficit. At one point, the government shut down mining operations, which housed over 900,000 mining devices, resulting in a 2,400 MW drop in nationwide power consumption.
To accelerate its crackdown, the government has pledged rewards of up to 1 million tomans ($24) for Iranians who report illegal operations.
Watch: The Truth About Mining Profitability
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Source: https://coingeek.com/iran-launches-crackdown-on-illegal-btc-mining-operations/