By Pishtaz | 2026-07-25

Iran's worsening electricity crisis has exposed a striking contradiction in the country's economic priorities.

While households and businesses endure rolling blackouts, industrial scale cryptocurrency mining continues consuming enormous amounts of electricity.

Critics argue the regime converts subsidized domestic energy into hard currency, benefiting state-linked interests while ordinary Iranians bear worsening power shortages.

Straining the power grid

Iranian electricity officials estimate cryptocurrency mining consumes nearly 2,000 megawatts of electricity, roughly matching the combined output of two Bushehr nuclear reactors.

Mohammad Allahdad, deputy head of Iran's state electricity company Tavanir, said cryptocurrency mining accounts for approximately 15% to 20% of Iran's electricity imbalance.

During a recent nationwide internet disruption, electricity demand reportedly declined by around 2,400 megawatts, suggesting hundreds of thousands of mining devices temporarily stopped operating.

The consequences extend well beyond electricity statistics, affecting homes, businesses and public services across the country.

Authorities have imposed rolling power outages as demand exceeds supply, disrupting daily life and economic activity.

Energy experts have long cited aging infrastructure, fuel shortages and climate pressures as contributing factors, while large scale cryptocurrency mining increasingly compounds those existing challenges.

Financial gains

Supporters describe licensed cryptocurrency mining as a legitimate economic activity, but critics argue it converts subsidized electricity into internationally transferable digital assets.

Blockchain researchers estimate Iran's cryptocurrency ecosystem has grown into a market worth roughly $7.8 billion annually.

Reuters reported estimates that Islamic Revolutionary Guard Corps (IRGC) linked wallets moved more than $3 billion in cryptocurrency since 2023.

Critics also highlight what they describe as unequal enforcement against cryptocurrency miners across Iran.

Authorities regularly announce raids targeting unauthorized mining operations run by private citizens while blaming illegal miners for electricity shortages.

Meanwhile, opposition groups and independent analysts allege large state linked mining facilities continue operating with preferential electricity access and limited regulatory oversight.

International authorities have simultaneously increased financial pressure on the Islamic Republic's cryptocurrency networks through coordinated enforcement measures.

In July 2026, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) designated additional cryptocurrency wallets linked to Iran's Central Bank.

Blockchain analysis found those wallets received approximately $165 million in stablecoins, while issuer Tether immediately froze $131 million held across the addresses.

Treasury officials said the wallets were used to evade sanctions and support regional proxies, including Hizbullah.