Iran Crypto Mining Cost Calculator
Legal miners pay 7 cents per kWh while IRGC-linked operations pay 0.004 cents per kWh—less than 1/50th the cost. This creates massive profit disparities as shown below.
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Iran doesn’t just allow cryptocurrency mining-it controls it. While most countries either ban crypto mining or treat it like any other business, Iran turned it into a state-run operation, run by the Islamic Revolutionary Guard Corps (IRGC) and tied directly to the Supreme Leader’s inner circle. This isn’t about innovation. It’s about survival.
Since 2018, when the government officially legalized mining, Iran has become one of the top three Bitcoin mining nations in the world. By 2022, it accounted for nearly 4.5% of the global Bitcoin hash rate. But here’s the catch: most of that power doesn’t come from private entrepreneurs. It comes from military bases, sports complexes, and secret facilities hidden behind government walls. And the electricity? It’s practically free.
How Iran’s Crypto Mining Machine Works
At the heart of Iran’s mining operation is one thing: subsidized electricity. While the average commercial user pays around 7 cents per kWh for mining under official rules, the IRGC and its allies pay as little as 0.004 cents per kWh. That’s less than one-fiftieth of what miners pay in the U.S. or Germany. This massive subsidy turns mining into a profit machine-especially when you convert Bitcoin into dollars outside Iran’s blocked banking system.
The largest known facility is a 175-megawatt mining farm in Rafsanjan, built by an IRGC-linked company with Chinese investors. It runs on its own dedicated power line, separate from the national grid. Other operations hide in plain sight: a 16-hectare sports complex in Ahvaz was found to have mining rigs buried under cycling tracks and in basement electrical rooms. The operation ran undetected for over two years.
These aren’t small-time operations. They’re industrial-scale. By early 2023, Iran’s total mining capacity exceeded 1,000 megawatts-enough to power a small country. And unlike in China, where mining was shut down in 2021, or Kazakhstan, where private firms moved in after China’s ban, Iran’s mining is a state project. The government doesn’t just tolerate it-it directs it.
The Sanctions Evasion Engine
The real purpose of state-controlled mining isn’t to make Iranians rich. It’s to bypass U.S. and international sanctions. When banks refuse to process Iranian transactions, Bitcoin becomes a workaround. Miners sell their Bitcoin on exchanges like Nobitex, convert it to USDT (Tether), and move it abroad through offshore wallets. The money ends up in the hands of the IRGC, religious foundations like Astan Quds Razavi, and other regime-linked entities.
This system became so effective that by 2020, Iranians were trading $16-20 million in crypto daily. The Central Bank of Iran even started working on its own digital currency, the “Rial Currency,” meant to compete with Bitcoin and give the state more control over digital money flows.
But the world noticed. On July 2, 2025, Tether-the company behind USDT-froze 42 Iranian-linked wallet addresses in the largest-ever freeze targeting Iran. These wallets were tied to Nobitex and IRGC-affiliated accounts flagged by Israeli counter-terrorism analysts. The move sent shockwaves through Iran’s crypto ecosystem. Overnight, millions in liquidity vanished.
Iran’s response? A government-coordinated push to dump USDT and switch to DAI, a stablecoin built on the Polygon network. It’s not about trust in DAI. It’s about finding a path around the freeze. This is the new reality: Iran’s crypto economy is now a high-stakes game of financial hide-and-seek.
The Energy Crisis No One Talks About
While the regime profits, ordinary Iranians pay the price.
Power outages have become routine across cities like Tehran, Isfahan, and Mashhad. During summer heatwaves in 2024, some neighborhoods went without electricity for 14 hours straight-while mining farms nearby kept running. Social media exploded with posts like #IranEnergyCrisis, where citizens directly blamed state-backed mining for blackouts.
One Reddit thread from June 2024, titled “How mining is destroying our power grid,” got 327 comments. Users described factories shutting down because of rationing, while mining operations near them stayed online. A verified Twitter account, @EnergyCrisisIR, documented daily outages tied to mining activity. The pattern was clear: when the grid strains, the government cuts power for civilians-not for the IRGC.
Experts call it a “crypto cartel.” State-linked entities get free power. Regular citizens get blackouts. And the government does nothing to stop it-because the system works for them.
Legal Mining? Only If You’re Not Connected
Iran does have rules for legal mining. You need a license from the Ministry of Industry, Mine and Trade. You must use government-approved hardware (which is slower and less efficient). You pay 7 cents per kWh. And you must submit your user data to authorities via government API.
But here’s the twist: these rules only apply to people without connections. If you’re linked to the IRGC, the Revolutionary Guards, or a powerful religious foundation, none of this matters. Your facility gets its own power line. Your equipment is never inspected. Your electricity bill? Zero.
For regular citizens, getting a license takes 6-8 weeks. The hardware they’re forced to use cuts mining efficiency by 15-20%. Meanwhile, the IRGC’s rigs, built with Chinese tech and running on subsidized power, are among the most profitable in the world.
It’s not regulation. It’s discrimination disguised as policy.
The New Tax Trap
In August 2025, Iran passed the “Law on Taxation of Speculation and Profiteering.” For the first time, crypto trading became subject to capital gains tax-treated the same as gold, real estate, or foreign currency speculation.
On paper, this looks like a move toward financial transparency. In reality, it’s a revenue grab. The government wants a cut of the billions flowing through crypto exchanges-but only from the people who can’t hide.
Meanwhile, IRGC-linked operations remain untaxed. Their transactions are invisible. Their profits flow out of the country without a trace. The tax law targets small traders and local exchanges, not the regime’s own mining empire.
It’s a classic pattern: punish the weak, protect the powerful.
What’s Next for Iran’s Crypto Experiment?
Iran is caught in a trap. It needs crypto to survive sanctions. But the same system that helps it also destabilizes the country. Power outages hurt industry. Public anger grows. International financial tools like Tether are getting better at blocking Iranian funds.
The government’s solution? More control. More surveillance. More restrictions on citizens. In December 2024, the Central Bank shut down all crypto-to-rial payment gateways. In January 2025, they reopened them-but only if exchanges handed over full user data. Now, every transaction is tracked.
Iran isn’t trying to build a crypto economy. It’s trying to build a surveillance state that uses crypto to stay alive.
The world may see Iran as a mining giant. But inside Iran, it’s clear: this isn’t progress. It’s plunder.
Is cryptocurrency mining legal in Iran?
Yes, but only under strict government control. Legal mining requires a license from the Ministry of Industry, Mine and Trade, use of approved hardware, and payment of a set electricity rate (7 cents per kWh). However, state-linked entities like the IRGC operate outside these rules with free power and no oversight.
Who controls crypto mining in Iran?
The Islamic Revolutionary Guard Corps (IRGC) and entities loyal to Supreme Leader Ali Khamenei control the largest and most profitable mining operations. These include facilities on military bases and in hidden locations like sports complexes. Private miners face heavy restrictions, while state-backed operations enjoy subsidized electricity and immunity from enforcement.
Why does Iran allow crypto mining despite energy shortages?
Because it’s a key tool for bypassing U.S. sanctions. Mining allows the regime to convert Bitcoin into foreign currency without using the global banking system. The profits fund military operations, proxy groups, and elite networks. The cost-rolling blackouts for civilians-is considered an acceptable trade-off by those in power.
How much electricity does Iran’s crypto mining use?
Iran’s total mining capacity exceeded 1,000 megawatts by early 2023. One facility in Rafsanjan alone uses 175 megawatts-enough to power a city of 100,000 people. These operations consume a significant portion of the national grid, contributing directly to widespread power outages across provinces.
What happened with Tether’s freeze of Iranian crypto addresses in 2025?
In July 2025, Tether froze 42 Iranian-linked cryptocurrency addresses tied to Nobitex and IRGC-affiliated wallets. This was the largest-ever freeze targeting Iran and disrupted billions in transactions. In response, Iran urged users to shift from USDT to DAI on the Polygon network to maintain access to liquid assets outside the frozen system.
Are Iranian citizens allowed to mine cryptocurrency?
Technically yes, but it’s nearly impossible to compete. Legal miners must use slow, government-approved hardware, pay higher electricity rates, and submit personal data to authorities. Meanwhile, state-backed miners operate with free power and no oversight. Most citizens who try to mine end up losing money-or risk arrest for operating without a license.
Is Iran developing its own cryptocurrency?
Yes. The Central Bank of Iran has been working on a state-backed digital currency called the “Rial Currency,” designed to be a government-controlled alternative to Bitcoin and other decentralized coins. Unlike Bitcoin, it would be fully monitored, convertible only through state channels, and tied to the traditional rial. Its goal is to replace private crypto use while maintaining financial control.
Why do Chinese companies invest in Iran’s crypto mining?
China’s own mining industry was shut down in 2021, forcing firms to relocate. Iran offers cheap electricity, minimal regulation, and a government willing to protect foreign investors. Chinese companies supply the mining hardware and technical expertise, while Iranian partners provide power, land, and political cover. It’s a mutually beneficial arrangement built on sanctions evasion.
Jessica Eacker
December 10, 2025 AT 03:15It's heartbreaking to see how power gets weaponized against ordinary people. The fact that families are freezing in winter while mining rigs hum along in military zones isn't just unfair-it's a moral failure wrapped in code.
Lloyd Cooke
December 10, 2025 AT 05:56The architecture of oppression is rarely this elegant. A state turns a decentralized technology into a centralized tool of extraction-mining not for progress, but for perpetuation. Bitcoin, born of libertarian dreams, now fuels the very autocracy it was meant to undermine. The irony is not lost on those who remember the cypherpunk manifestos. We built a system to escape control. Now control has learned to mine it.
Kurt Chambers
December 10, 2025 AT 14:15USA should nuke these clowns. Free energy? Nah, free power for tyrants? That's just dumb. We let Iran play crypto chess while our grid goes dark? Screw that. Time to send some sanctions with teeth. And maybe a drone or two.
Kelly Burn
December 10, 2025 AT 20:54Okay but like… 🤯 the IRGC using crypto to bypass sanctions is basically a villain origin story in real time. And the fact that they’re running rigs under cycling tracks?? That’s not just clever-it’s cinematic. Also, DAI over USDT? Smart move. Polygon’s got way less surveillance. 💪🌐 #CryptoResistance
Andy Walton
December 11, 2025 AT 22:11imagine being so rich you can afford to steal electricity from your own people lmao. also why is everyone so shocked? this is iran. they’ve been doing this since the 70s. just swap oil for bitcoin. same game. different ledger. 😂
Madison Surface
December 13, 2025 AT 04:53I’ve read so many articles about sanctions and crypto, but this one made me cry. Not because of the tech-it’s the quiet suffering of people who just want their lights on. A mother in Mashhad can’t run her fan. A student in Isfahan can’t charge their laptop. Meanwhile, a 175-megawatt rig hums like a lullaby for the elite. This isn’t economics. It’s violence with a blockchain.
Jessica Petry
December 14, 2025 AT 01:38Let’s be honest: this is just the logical endpoint of decentralized finance. When you remove intermediaries, you don’t remove power-you just give it to someone else. The IRGC didn’t invent exploitation; they just optimized it. And now we’re all supposed to be impressed? Please. This isn’t innovation. It’s institutionalized theft with a whitepaper.
PRECIOUS EGWABOR
December 15, 2025 AT 21:50Look, I get the whole ‘sanctions are cruel’ argument. But when your regime uses child labor to run mining rigs in basements while kids go to school in the dark? That’s not resistance. That’s just evil with a crypto wallet. Also, DAI? Cute. But if you’re still using a centralized exchange like Nobitex, you’re just moving the same poison into a prettier bottle.
Stanley Machuki
December 16, 2025 AT 08:59China left. Iran stepped in. Simple. The world needs hash power. The regime needs cash. The people? They’re collateral. This isn’t a conspiracy-it’s capitalism with a bayonet. And honestly? It’s working.
Lynne Kuper
December 17, 2025 AT 00:30So the government taxes small traders but lets the IRGC mine for free? Classic. Punish the poor. Protect the predators. And call it ‘financial reform.’ I’ve seen this movie before. It always ends with the same people starving while the suits count their Bitcoin.
John Sebastian
December 17, 2025 AT 20:02Everyone talks about the tech. No one talks about the people who die because the grid failed. That’s the real story here.
Candace Murangi
December 19, 2025 AT 02:21It’s wild how the same tech that promised freedom became a tool for control. I wonder if Satoshi ever imagined this. Probably not. He thought people would use it to escape banks. Not to escape justice.
Tiffany M
December 19, 2025 AT 20:06Okay but can we talk about how the IRGC is basically the world’s first state-sponsored crypto cartel?? Like… they’re not just mining-they’re monopolizing energy, controlling liquidity, and rewriting the rules. And we’re just sitting here watching? This is cyber-feudalism. And it’s terrifying.
Eunice Chook
December 21, 2025 AT 19:18Iran isn’t using crypto to bypass sanctions. They’re using sanctions to justify crypto. It’s a loop. The more they’re isolated, the more they lean on mining. The more they mine, the more they’re isolated. It’s not survival. It’s self-immolation with a GPU.
Lois Glavin
December 22, 2025 AT 12:12I just hope someone’s helping the families who lost power. This isn’t abstract. Someone’s baby can’t breathe because the fan stopped. Someone’s mom can’t call for help because the phone died. This isn’t politics. It’s human.
Kathleen Sudborough
December 22, 2025 AT 16:25There’s a quiet courage in people who still try to mine legally-paying 7 cents, using slow hardware, submitting their data. They’re not rebels. They’re believers. And the system is designed to break them. We owe them more than outrage. We owe them solidarity.
Vidhi Kotak
December 22, 2025 AT 17:34In India we also face load-shedding, but at least the government doesn’t steal our power to fund militias. Iran’s situation is a warning: when tech is controlled by the state, it becomes a weapon. Not a tool.
Kim Throne
December 23, 2025 AT 07:09The centralization of Bitcoin mining in Iran represents a fundamental contradiction in the cryptocurrency ethos. Decentralization, as originally envisioned, requires autonomy from state actors. When the state becomes the primary miner, the entire premise collapses. This is not innovation-it is institutional capture masquerading as technological adoption.
Caroline Fletcher
December 23, 2025 AT 13:52Wait… what if this is all a psyop? What if the U.S. and Israel actually encouraged Iran to mine so they could later freeze the wallets and blame it on ‘sanctions’? Like… maybe this whole thing was engineered to make crypto look unstable? Just saying.
amar zeid
December 23, 2025 AT 17:00The IRGC didn’t invent corruption. They just upgraded it with ASICs. This is the future of authoritarianism: not tanks, but algorithms. Not bullets, but blockchain. And the worst part? It’s legal. In their world, it’s not a crime. It’s policy.