Iran’s Bitcoin Hashrate Estimated at Up to 8% Amid State-Linked Mining

Iran’s role in Bitcoin mining has expanded into the global network, with estimates placing the country’s contribution at 6%-8% of total hashrate. This level of activity positions Iran among the world’s major mining hubs, with analysts indicating that a large share of operations is tied to state-linked entities.

Data shows that approximately 70% of the country’s mining capacity is associated with organizations connected to the military, placing part of Bitcoin’s infrastructure within a geopolitical area.

According to estimates, Iran has built its mining capacity over several years, with activity increasing despite international sanctions. Analysts report that a large share of mining operations is controlled by entities linked to the Islamic Revolutionary Guard Corps (IRGC).

This concentration of control means that a large share of Bitcoin block production is influenced by operations in Iran, with some projections suggesting that roughly one in every 15 blocks mined globally may be tied to the country.

Research cited by Bloomberg expert Dushyant Shahrawat points to a structured approach in developing mining infrastructure. Over the past five years, Iran has reportedly integrated Bitcoin mining into broader financial strategies that operate outside traditional global payment systems.

Cost Structure Drives Competitive Advantage

The economics of mining in Iran differ from those of many other regions. Electricity costs are heavily subsidized, allowing mining operations to produce one Bitcoin at an estimated cost of about $1,325. Compared with current market prices, this creates a large cost differential.

This advantage is supported by access to low-cost energy, which is often used at scale in facilities that are not always publicly documented. Reports indicate that such operations are sometimes located in areas intended to remain outside formal regulatory visibility.

Energy Impact and Domestic Strain

The scale of mining activity has also been linked to pressure on Iran’s domestic power infrastructure. Large-scale energy consumption by mining facilities contributes to ongoing electricity shortages, particularly during periods of peak demand.

These energy demands occur alongside broader regional challenges. Reports note that electricity constraints are not isolated, with neighbouring regions also experiencing power disruptions as energy pressures increase.

Related: Iranian Crypto Outflows Surge 700% After U.S.-Israeli Strikes