Iranian authorities have seized around 1,000 bitcoin mining machines from two former factories, following an increase in electricity consumption, BBC reports.
"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, was quoted as saying in the report.
Demand for power reportedly rose by 7% in June and cryptocurrency mining was thought to be the main reason.
Earlier this week, there were reports that cryptocurrency miners in Iran will be detected and face power cuts. Mostafa Rajabi Mashhadi, an official from the country's state-run power generation and transmission company Tavanir, said that it is illegal to use the national grid for cryptocurrency mining.
Bitcoin is increasingly being seen as a means to store wealth after U.S. dollar and gold by Iranian, per the BBC report.