Report: Iran’s electricity costs are not competitive, hindering mining investment

On January 27, according to a report, Iran had previously "approved 24 Bitcoin processing centers, consuming about 300 megawatts of energy per day."

Additionally, Iran’s “electricity costs of around 4 cents per kilowatt-hour” and tax-free zones in the south have helped attract “tech-savvy Chinese entrepreneurs.” However, the report explains that others within the Iranian government are more concerned about “how much money is being remitted abroad and controlling money laundering.” Across Iran, business people and individuals are using Bitcoin to circumvent economic sanctions imposed by the United States.

Although Iran’s electricity costs are competitive compared to other countries, the report suggests that Iranian Bitcoin miners have a different view on this. As Mohammad Reza Sharafi, head of the country’s Crypto Mining Farms Association, suggests, Iran’s electricity costs are a hindrance to crypto mining activities. Explaining Iran’s high electricity costs, Sharafi noted that “only a few dozen server farms are still operating” under licenses issued to 1,000 investors. Other miners seemed upset that they were facing electricity prices that were five times higher than those for “steel mills and other industries that consume much more electricity.”

Earlier news, Iranian authorities have closed 1,620 illegal cryptocurrency mining farms, which are using 250 megawatts of electricity. Iran has stopped all Chinese Bitcoin mining companies with legal licenses in the country on January 14. It is reported that 45,000 ASIC mining machines have been confiscated.