Cryptocurrency miners are using subsidized energy in Iran, and it's weighing on the national grid

Iranian cryptocurrency miners are taking advantage of subsidized energy in the country, and it is putting pressure on its power grids, Bloomberg News reports

As per Iranian state media, a spokesperson for Tadvin Electricity Company faulted cryptocurrency miners for a 7% increase in energy consumption in the country. 

“The production of each Bitcoin uses the equivalent of the annual consumption of 24 properties in Tehran, or one property’s consumption of electricity for 24 years,” Mostafa Rajabi Mashhad said.

As such, Iran's Power Ministry could implement a tariff on miners, according to Bloomberg.

Cryptocurrency use has increased generally in the country as a way to circumvent sanctions put on the country by the US government. 

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]

More by Frank Chaparro