Will the Iran Conflict Endanger BTC Hash Rate? Tensions Rise for Tehran’s Bitcoin Miners

The hash rate of Bitcoin declines following the United States’ attack on nuclear sites in Iran. Will the computational power rebound, or are further declines anticipated if the conflict between Iran and Israel persists?

On June 22, two notable events occurred, one of which was unexpected. The U.S. airstrikes on Iranian nuclear sites led to a predictable drop in BTC prices, yet the subsequent decrease in the Bitcoin hash rate was surprising.

The hashrate fell immediately following Israel’s initial assault on Iran. It’s a lesser-known fact, but Iran has been engaged in block rewards for several years (over 5 years).. it’s plausible that Israel targeted components of Iran’s power protocol, impacting their block rewards activities.

Uncertain whether disrupting…

— daniel (@mars_quaking) June 23, 2025

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Bitcoin Hash Rate Decreases

Trading market monitors indicated that BTC ▼-1.19% dropped to a low of $98,500 before rebounding yesterday. Historically, when the world’s premier crypto asset experiences a decline, it brings down altcoins, including leading Solana meme coins.

Currently, the overall digital currency crypto market has decreased by 2.4%, totaling $3.2 trillion, according to Coingecko. Even though BTC has managed to recover, trading above $101,000, the hash rate continues to be low and has faced a downturn in recent days.

The Bitcoin hash rate stands around 861 EH/s, down from 943 EH/s noted in mid-June. While still at peak levels, the hash rate witnessed a swift decline over the weekend, dropping from 886 EH/s on June 18 to a low of 861 EH/s by June 22.

(Source)

Miners in Iran Going Offline?

The decrease in hash rate may be linked to miners in Iran ceasing operations on the day the United States targeted crucial Iranian nuclear sites, potentially leading to energy shortages.

Block rewards Bitcoin is a process that requires substantial energy, and miners, who might be running thousands of state-of-the-art rigs, need consistent access to electricity and stable internet.

Both these essential services were disrupted last week amidst rising tensions between Iran and Israel, with reports of power and internet outages in both nations.

Per Mempool, a BTC block rewards tracker, many of the largest crypto mining pools operate in the United States. For instance, Foundry USA provides 255 EH/s, while MARA Pool supplies 41.30 EH/s of hash rate.

(Source)

Other miners from Asia and Europe are also present. Nonetheless, thousands of smaller mining pools, while not as substantial, still contribute hundreds of EH/s and play a vital role in securing the Bitcoin network, ensuring its barrier level to censorship, decentralization, and high reliability.

BTC Mining Is Permitted In Iran

Among these are mining facilities and pools located in Iran. Despite facing sanctions, the nation has established itself as a significant player in the Bitcoin crypto mining sector, contributing to the broader crypto landscape.

The reduction in hash rate over the weekend, coinciding with the bombings, strongly points to Iran’s involvement in Bitcoin mining, due to its abundant subsidized electricity sourced from fossil and nuclear origins.

This development is not surprising. The Central Bank of Iran started issuing mining licenses for Bitcoin in 2019 when it was legalized. With a sufficient token supply of Bitcoin and operators, the country effectively navigated U.S.-led economic sanctions.

The Islamic Revolutionary Guard Corps (IRGC) has been actively participating in these crypto mining efforts, reportedly consuming over 2,000 MW of power daily to mine Bitcoin.

By approximately 2021, Iran contributed 4.5% of the global Bitcoin hash rate, generating over $1 billion in annual revenue. However, by 2024, their share dwindled to 3.1% due to heightened regulations, inconsistent enforcement, and a reportedly unstable power grid.

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Potential for Hash Rate Recovery?

It remains uncertain if additional attacks on Iranian energy facilities will adversely affect the Bitcoin hash rate. Recovery may be a lengthy process.

The positive aspect is that despite the strike on the Esfahan complex, the IAEA has confirmed no radioactive contamination, only minor structural damages.

If more strikes occur, taking rigs offline, the hash rate is likely to further decline, and the platform will adjust its difficulty downwards to continue processing blocks every 10 minutes.

Nevertheless, this wouldn’t mark the first instance of the network encountering significant interruptions. The Bitcoin crypto mining prohibition in China resulted in a substantial hash rate drop, but following a few months, the hash rate surged, aligning with the prices of certain prime cryptos to purchase, reaching new heights.

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