US and Israeli airstrikes on Iran have entered their fourth day. The attacks are targeting military infrastructure and power facilities. Some analysts believe the campaign may also threaten Iran’s extensive Bitcoin mining operations.
Cryptocurrency experts have raised questions about the strikes’ impact on Iran’s power grid. The country hosts an estimated 2-5% of global Bitcoin mining capacity. Disrupting the grid could shut down hundreds of thousands of mining rigs.
Iran legalized cryptocurrency mining in 2019. The regime uses cheap subsidized electricity to convert energy resources into hard currency. Licensed miners pay as little as $0.005 per kilowatt-hour. This allows them to produce Bitcoin at roughly $1,320 per coin.
The sector has grown substantially. Blockchain firm Chainalysis estimates Iran’s crypto ecosystem reached $7.78 billion in 2025. The Islamic Revolutionary Guard Corps controls over half of these inflows. Up to 700,000 mining rigs operate nationwide, consuming power equivalent to a mid-sized city.
Bitcoin has become vital for Iran’s economy. The central bank uses cryptocurrency to bypass international sanctions. The regime generates approximately $1 billion in annual revenue through digital assets.
Previous conflicts have affected Iranian mining. In June 2025, US strikes on nuclear sites caused global Bitcoin hashrate to drop by about 1%. Power disruptions led to a 15% decline over two weeks.
The current strikes have hit power substations. Analysts warn that significant grid damage could halt mining operations entirely. Mining equipment requires constant electricity to function. Following initial strikes on February 28, Iran’s largest exchange saw a 700% surge in outflows.
However, some experts downplay the risk. Wolfie Zhao of TheMinerMag stated Iran’s mining contribution is too small to disrupt the global network. Bitcoin prices initially fell to $63,000 but recovered to $67,000 by March 3.
The situation connects to broader US crypto policy. President Trump established a Strategic Bitcoin Reserve in March 2025 through executive order. The administration aims to position America as the “crypto capital of the world.” Some observers suggest eliminating Iranian competition serves this goal.
Social media posts have speculated about the connection. One viral message stated: “You don’t become the crypto capital by competing with a country that mines Bitcoin for $1,320. You bomb their grid.” No US officials have confirmed mining facilities as targets.
Bitcoin is currently trading at $67,500. The price has risen 2% despite ongoing hostilities. The conflict highlights how cryptocurrency has become entangled with international security concerns.
