Iran's Crypto Mining Operations Consume Significant Electricity Resources, Report Reveals

A report from Iran's Majlis Research Center has highlighted the substantial impact of cryptocurrency mining on the country's electricity supply, revealing that these operations consume between 930 and 1,200 megawatts of power. This consumption accounts for approximately 14% of Iran's electricity deficit during peak summer months, exacerbating an already strained power grid.

The economic implications of this mining activity are significant, with the report estimating that it costs the nation around $1.5 billion annually. The analysis indicates that sustaining such mining operations requires about 2 billion liters of diesel fuel each year, further straining Iran's energy resources. Previous estimates from Iran's state utility, Tavanir, suggested that crypto mining could account for 15-20% of the country's power deficits, particularly during major outages when illicit mining could draw as much as 2,400 megawatts from the grid.

The report also notes the connection between subsidized electricity rates in Iran and the profitability of mining operations, with the cost of mining a single Bitcoin estimated at around $1,300, significantly lower than the global average of approximately $87,000. Additionally, there are concerns regarding the involvement of individuals linked to Iran's Islamic Revolutionary Guard Corps in the crypto mining sector, with the U.S. Treasury recently sanctioning Iran's BitBank for facilitating large Bitcoin transfers to the IRGC. As the country grapples with severe electricity shortages, the report underscores the disproportionate burden placed on ordinary citizens, who face limited access to power for essential services.

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Source: KLEA News