Iran has launched a new initiative offering financial rewards to individuals who report unauthorized cryptocurrency mining operations. In an effort to alleviate the strain on its power grid during a severe heatwave, the government is offering a bounty of 1 million toman (around $24) to anyone who reports illegal mining rigs. These operations have been blamed for exacerbating the country’s electricity shortage.
The announcement was made by Mostafa Rajabi Mashhadi, CEO of the state-run electricity company Tavanir. He pointed out that unauthorized crypto miners have been taking advantage of subsidized electricity, contributing to the country’s power crisis by running energy-intensive mining equipment.
This new measure comes as Iran faces sweltering temperatures, with some regions experiencing heat as high as 113 degrees Fahrenheit (45 degrees Celsius). The extreme weather has significantly increased energy consumption, pushing the already stressed power grid to its limits.
Illegal crypto miners use subsidized electricity to power their mining rigs, which consume massive amounts of energy as they solve complex cryptographic puzzles to generate cryptocurrency, particularly Bitcoin. Mashhadi revealed that 230,000 illegal mining machines consuming up to 900 megawatts of power have been discovered—equivalent to the electricity consumption of an Iranian province with 1.4 million residents. The government hopes that offering financial incentives to report these operations will reduce the load on the grid.
Iran has been grappling with illegal cryptocurrency mining for some time, with many operations running out of places like schools and mosques that receive free or heavily subsidized electricity. Crypto mining, particularly Bitcoin’s proof-of-work model, is an energy-heavy process that has sparked concerns worldwide about its environmental impact. Countries like Venezuela have similarly banned crypto mining to protect their power grids, citing its massive energy demands. In May, Venezuela halted mining operations for this reason.
The move comes as part of a broader effort to stabilize Iran’s power grid, which has been struggling under increasing demand during the heatwave.
By incentivizing citizens to report illegal miners, Iran hopes to reduce unauthorized energy consumption and ease the pressure on its power grid during a time of extreme demand. This strategy reflects the growing challenges countries face as they balance technological advancements with infrastructure limitations.
