Global Bitcoin Network Stalls Amid Iran Internet Blackout; Unveiling the Might of Underground Mining

A recent report by Fars News Agency has analyzed the technical and economic dimensions of this event. According to the report, the intensified crackdown on illegal cryptocurrency mining farms in Iran has not only reduced pressure on the domestic electricity grid; coincident with these measures, the processing power of the Bitcoin network on a global scale has experienced a significant and meaningful drop.

Processing Power Plummets from 450 to 406 Exahashes

Data recorded by international monitoring bodies indicates that precisely during the period of internet blackouts and the crackdown on miners in Iran, the Bitcoin network’s processing power (hashrate) crashed from approximately 450 exahashes (EH/s) to nearly 406 EH/s. For a network where miners are distributed across the entire globe, a 10% loss of power occurring within just a few days is considered an anomaly and a major market signal.

This precise synchronization has focused analysts’ attention on a chain of events within Iran, ranging from nationwide internet disruptions to a sudden and notable reduction in electricity consumption. Estimates by a government body reveal that during the peak days of the crackdown on unauthorized miners, approximately 1,300 megawatts were shed from the country’s grid baseload. To understand the magnitude of this figure, it is equivalent to the total electricity consumption of a medium-sized city.

Iran’s 5% Share of the Global Mining Market

The palpable drop in the global hashrate has broadcast a clear message: a significant portion of the Bitcoin network’s computing power was active in locations invisible to official and transparent global statistics—regions like Iran, where the crypto mining industry largely operates underground and unofficially.

Analytics suggest that Iran’s real share of global Bitcoin mining is approximately 5 percent. While this number may appear small at first glance, in a market with a turnover of hundreds of billions of dollars where network security depends on power distribution, 5% is a decisive figure. Crucially, this share does not stem from transparent industrial farms, but largely emerges from the depths of an underground economy—an economy fed by cheap subsidized electricity, regulatory voids, and specific sanctions conditions.

800,000 Miners Operating in the Shadows

Official statistics reveal even more shocking dimensions of this covert network. It is estimated that between 700,000 to 800,000 unauthorized mining devices are operating in Iran, scattered across approximately 70,000 to 80,000 small and large farms throughout the country. This “cyber army” of miners consumes a total of 2,000 to 2,400 megawatts of electricity—a figure equivalent to the generation capacity of two Bushehr nuclear power plants.

Comparative studies on power grid data also indicate that about 25% of mining activities are conducted “behind the meter.” This implies that this portion of electricity consumption bypasses recording by official meters and measurement tools, effectively remaining invisible.

The Hidden Variable in Energy Imbalance

At a time when the country is grappling with a chronic energy imbalance, the sudden silence of miners and its subsequent impact on the electricity grid and internet has proven that cryptocurrency mining is a hidden, yet highly potent, variable in Iran’s energy crisis. It is an industry that, during peak consumption days, can tip the scales toward blackouts or grid stability. As witnessed, the scope of its impact extends far beyond Iran’s geographical borders, shaking global markets.