Iran's cryptocurrency mining industry is a complex landscape shaped by economic sanctions and hyperinflation. Initially contributing 7.5% to Bitcoin's hashrate in March 2021, this figure plummeted to 0.12% by January 2022. Estimates suggest that Iran has mined between 60,000 to 200,000 BTC, valued at approximately $6.4 billion to $21.4 billion. However, much of this mining activity is unlicensed, driven underground to circumvent severe electricity costs and mandatory regulations that require mined Bitcoin to be sold to the central bank. This clandestine operation, including individuals and institutions like schools and mosques using subsidized electricity, poses challenges for accurate accounting of Iran's crypto holdings. Reports indicated that as of 2021, roughly 85% of mining activities in Iran were unauthorized, with Tavanir estimating around 700,000 illegal rigs. The involvement of organizations like the Islamic Revolutionary Guard Corps further complicates the situation, making it difficult to ascertain total Bitcoin holdings within the country, underscoring the difficulties in tracing the origin of mined Bitcoin. Aside from the economic pressures, a segment of the Iranian populace resorts to crypto mining as a means to combat inflation, focusing on small-scale, home-based operations.

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