Bitcoin's Double Life Under Middle Eastern Fire: Iran Revolutionary Guard Harvests Chinese Miners, Civilians Flee Using Private Keys

For civilians under shellfire, this is not just computing power but possibly the only savings that won’t be wiped out by an order.

Many people focus on Wall Street but overlook that Iran’s mining machines are operating amidst the war.

A set of data might change your perception:

Mining one Bitcoin costs about $90,000 worldwide, but in Iran, it only costs $1,300.

Today, with the ongoing tension in the Middle East, Bitcoin’s significance in this land goes far beyond speculation.

For civilians under shellfire, this is not just computing power but possibly the only savings that won’t be wiped out by an order.

1. State machinery mining

The $1,300 mining cost in Iran comes from a simple fact:

Iran has the second-largest natural gas reserves in the world, but due to sanctions, it cannot export, so much of the natural gas is burned on-site. Instead of wasting it, they use it to generate electricity.

As a result, mining farms enjoy extremely low electricity prices of about $0.002 per kWh, far below the global average.

A special survival chain is thus formed—

Surplus natural gas becomes cheap electricity, which powers mining machines to produce Bitcoin. Bitcoin bypasses blocked international settlement channels and exchanges goods like food, medicine, and machinery parts on the international market.

A January 2026 Chainalysis report shows that in 2025, IRGC-related wallets received over $3 billion in crypto assets (including various sanctions evasion activities, not purely mining income).

But this price isn’t accessible to everyone.

Those enjoying ultra-low electricity rates are almost all institutions with deep ties to the military or government. They build their own power plants, lay their own lines, and even guard the mines with guns.

In 2021, the energy department attempted to shut down an unlicensed mine but was obstructed on-site by armed personnel, and the mining continued as usual.

In 2022, the parliament passed a law allowing certain military agencies to build their own power and transmission facilities.

In other words, in this system, miners are also power suppliers and rule-setters.

Official estimates suggest that about 95% of mining activity nationwide is unlicensed, consuming roughly 2,000 MW of electricity—equivalent to full capacity of a nuclear power plant.

With these computing powers, Iran ranks as the fourth or fifth largest mining center globally.

However, while the machines roar day and night, ordinary residential power grids frequently overload.

Cheap electricity has never flowed to ordinary people’s outlets.

And those who try to break into this chain from outside pay a price far beyond $1,300.

2. Chinese miners’ billion-dollar lessons

News of mining a coin for $1,300 spread through China’s mining circles.

At that time, domestic regulations tightened, and miners began a global migration.

Veteran miner Lao Li targeted Iran’s electricity rate of about 18 cents per kWh. He connected with local forces through intermediaries. Due to poor infrastructure, he chartered planes to transport 30,000 second-hand miners along with transformers and containers to Tehran.

But he didn’t expect this to be a one-way street.

Troubles came one after another.

First, high temperatures caused widespread machine failures. Then, local partners’ greed grew, and they demanded up to 30% of the profits.

Lao Li tried to negotiate, but the other side cut the power. Despite using connections to coordinate, it was useless. He lost over 100 million RMB in the process.

He attempted to move the equipment to Ethiopia to cut losses, but customs in Iran seized the devices, and they couldn’t leave.

The last batch of miners was scrapped in Tehran, and Lao Li left the area.

In early 2021, Iranian authorities suddenly confiscated 45,000 mining machines.

Personnel from licensed local mines said frankly: “From 2019 to 2020, many Chinese companies flooded into the special zone to set up farms, but after the ban in 2021, power was cut off. They are no longer active in Iran.”

Lao Li later said that few Chinese big miners in Iran managed to leave unscathed.

Many devices entered through unofficial channels without legal customs documents. When policies tightened, the machines couldn’t be exported, and people couldn’t escape either.

3. Bombs fall, crypto withdrawal surges 700%

In late February 2026, Tehran was hit by airstrikes.

Within hours of the news, Iran’s largest crypto exchange, Nobitex, saw a 700% surge in withdrawal volume.

Data shows that from February 28 to March 2, total outflows reached about $10.3 million.

Chainalysis notes that it’s still difficult to determine the exact source of these funds, which may include:

1. Ordinary civilians transferring assets to cold wallets for self-protection;

2. Exchanges rapidly dispersing funds to prevent server damage;

3. Certain large accounts with special backgrounds transferring assets overseas.

The reasons behind these actions are not hard to understand.

Since 2018, the Iranian rial has depreciated over 90% against the dollar, and domestic inflation has remained above 40% for years.

For ordinary people and businesses, bank deposits are shrinking continuously, foreign exchange channels are nearly closed, and physically exporting gold is extremely risky.

At this moment, a string of Bitcoin mnemonic phrases that can be memorized without relying on any institution has become one of the few assets still under personal control.

ViraMiner CEO, a licensed local mine operator, states that about 18 million Iranians hold crypto assets, and there are roughly 300 to 600 digital exchanges within Iran.

It is noteworthy that the Central Bank of Iran explicitly bans individuals from trading cryptocurrencies, yet the government has purchased over $500 million worth of USDT to stabilize trade.

This disparity further erodes ordinary people’s trust in formal financial systems.

However, this digital escape ultimately hit a wall.

After the airstrikes, internet connectivity was cut off by 99%, causing the surging transaction volume to shrink by 80%.

The desire to escape is 700%, but the only route left is 1%.

Post-strike, Bitcoin’s price hovers around $72,000.

But for ordinary people on Tehran’s streets, the rise and fall mean little.

When war erupts, the national currency depreciates rapidly, bank accounts can be frozen at any time, and foreign exchange controls make it nearly impossible for ordinary people to transfer money abroad.

At this point, Bitcoin is no longer just the grand “digital gold”; it has become a lifeline in chaos—an escape route that requires no passport.

Those taking this route include state machinery, armed generals, and more ordinary people holding devalued currency, unsure of where tomorrow will lead.

They all use the same chain but see a completely different world.