Iran, pressured by blackouts and pollution, targets Bitcoin

TEHRAN, Iran — Iran’s capital and major cities plunged into darkness in recent weeks as rolling outages left millions without electricity for hours. “Bitcoin shines here.” Iran’s generously subsidized electricity has put the country on the crypto-mining map, given the operation’s enormous electricity consumption. “The priority is with households, commercial, hospitals and sensitive places,” said Mostfa Rajabi Mashhadi, spokesman of Iran’s electricity supply department, noting that illegal farms sucked up daily some 260 megawatts of electricity. “Bitcoin was an easy victim here,” said Kaveh Madani, a former deputy head of Iran’s Department of Environment, adding that “decades of mismanagement” have left a growing gap between Iran’s energy supply and demand. Authorities reported that households have increased their heating gas usage by 8% this year, which Tehran’s electric supply company said led to “limitations in feeding the country’s power plants and a lack of electricity.” Sanctions targeting Iran’s aging oil and gas industry have compounded the challenges, leaving Iran unable to sell its products abroad, including its low-quality, high-sulfur fuel oil known as mazut.