Coin Geek:

By Jacob Rozen

In the fast-paced world of block reward mining, electricity costs are key. As of 2025, mining one BTC takes about 266,000 kilowatt-hours (kWh) of power, which is enough to charge all the iPhones in California twice. With BTC trading at about $112,000, making a profit depends on electricity costs. Iran is the cheapest place to mine cryptocurrency, as subsidized electricity rates bring the cost down to just $1,324 per BTC, which translates to an 83x profit margin if sold at market price.

Why is Iran so cheap, and how does it compare to other countries? Additionally, since mining consumes as much energy as some countries (approximately 138 TWh per year for BTC alone, equivalent to Slovakia’s annual emissions), what can be done to make this digital craze benefit everyone?

Iran has an advantage because its industrial electricity is very cheap, averaging $0.002 per kWh. This is because of its large natural gas reserves and state controls, which prioritize energy access over market rates. This price is much lower than the global industrial average of $0.162/kWh. Because of this, miners go to underground operations to avoid sanctions while using fossil-fueled grids. This contributes to 4.2% of the global hashrate, even with crackdowns. At Iran’s rates, an Antminer S21 could generate $50 daily after halving, whereas it would incur losses in more expensive locations. But this cheap energy has a downside. Dependence on fossil fuels increases CO2 emissions, and limited water becomes scarcer as cooling rigs use up resources in dry areas.

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