Iran, Most Major Cities Blackout... "Due to Illegal Bitcoin Mining Power Consumption"

Traffic Lights in Downtown Tehran Paralyzed
Bitcoin Mining Farms Used as Major Foreign Currency Earners

[Image source=AFP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Major cities in Iran, including the capital Tehran, Isfahan, and Shiraz, are simultaneously experiencing power outages, causing even traffic lights in urban areas to fail and escalating chaos. The Iranian government has blamed the responsibility on cryptocurrency mining farms, such as Bitcoin mining operations, which consume massive amounts of electricity and operate unofficially. Since the U.S. sanctions against Iran, cryptocurrencies have gained popularity as alternative payment methods, leading to the establishment of numerous mining farms beyond the government's official facilities.

According to foreign media including the Associated Press on the 23rd (local time), intermittent power outages have continued since the previous day in major cities such as Tehran, Isfahan, and Shiraz. Iran’s semi-official Tasnim News Agency reported that power outages lasted between 1 to 3 hours by region from 11 a.m. to 6 p.m., when electricity demand is high. In the northern part of Tehran, power supply was cut off three times the previous day. As daytime temperatures hovered around 34 degrees Celsius, many Iranian citizens reportedly experienced significant inconvenience.

Iranian authorities have attributed the responsibility to cryptocurrency mining farms like Bitcoin. A representative from Iran’s electricity authority stated, "Cryptocurrency mining farms operating unofficially consume enormous amounts of electricity." Furthermore, the early arrival of this year’s heat and prolonged drought, which hindered proper hydroelectric power generation, were also cited as causes of frequent power outages. Mostafa Mashhadi, spokesperson for the National Electricity Industry, said, "The dam discharge volume for hydroelectric power generation has reached its limit."

Earlier in January, the Iranian government also took large-scale shutdown measures against cryptocurrency mining farms due to their electricity consumption. According to cryptocurrency media CoinDesk, the Iranian Ministry of Energy announced that it had shut down 1,620 illegal Bitcoin mining farms consuming more than 250 megawatts of power, except for 24 officially registered mining farms in the country.

Nevertheless, amid U.S. sanctions blocking dollar payments, cryptocurrency mining farms in Iran have been thriving as a major source of foreign currency earnings. According to blockchain analytics firm Elliptic, about 4.5% of the world’s Bitcoin mining output comes from Iran, and Iran’s annual Bitcoin production is estimated to be worth $1 billion (approximately 1.12 trillion KRW).

This content was produced with the assistance of AI translation services.