Eric
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BREAKING. Eighty-eight million Iranians are experiencing 4 to 8 hours of blackouts per day. The power plants have been struck. The gas processing capacity is damaged. South Pars is offline. And somewhere in Kerman province, a 175-megawatt Bitcoin mining farm connected to IRGC-controlled substations is running on electricity that Iranian families cannot use to keep their lights on. The IRGC does not pay for its electricity. Independent analysts and Chainalysis on-chain tracking confirm that IRGC-linked mining operations consume gigawatt-scale power through unmetered, priority access while residential neighbourhoods are load-shed for 4 to 8 hours daily. The official government policy bans mining during peak demand. The on-chain data shows persistent IRGC wallet activity during every blackout window. The ban is written on paper. The mining rigs are plugged into substations that do not have meters. Before the war, Iran’s national hashrate was approximately 920 exahashes per second, roughly 0.8 percent of the global Bitcoin network. IRGC-linked operations generated over $3 billion annually, more than half of Iran’s entire crypto ecosystem. The revenue funded proxy operations, sanctions evasion, oil settlement, and the same Hormuz toll infrastructure that now collects $2 million per tanker in yuan. The mining did not start with the war. It started with sanctions. The war simply revealed what was already happening: a state-within-a-state converting subsidised electricity into sanctions-proof revenue while the civilian grid decayed around it. The strikes have reduced hashrate by 8 to 12 percent, dropping output to roughly 800 to 850 exahashes. Daily revenue losses are estimated at $200,000 to $400,000. But the IRGC farms retain priority access because they are embedded in military compounds with dedicated substations, backup generators, and fibre connections that the civilian grid does not share. The Mosaic Doctrine that distributes sealed packets to 31 provincial commands also distributes electricity to mining operations that generate the revenue those commands need to function. The mining is not separate from the war machine. It IS the war machine’s power supply. The arbitrage is elegant and brutal. Iran subsidises domestic electricity at rates far below global market prices. The IRGC converts that subsidised electricity into Bitcoin at global market prices. The difference between the subsidised input cost (effectively zero for unmetered farms) and the Bitcoin output price ($87,000 per coin as of today) is pure profit. Every kilowatt-hour that an Iranian family does not receive is a kilowatt-hour that the IRGC converts into sanctions-proof revenue. The grid is not collapsing because of the war alone. It is collapsing because the IRGC has been mining the grid itself for years, and the war removed the surplus capacity that used to mask the theft. Chainalysis projects 2026 IRGC mining revenue between $1.8 billion and $3.1 billion depending on war duration and grid recovery. Even the pessimistic scenario funds the toll booth, the proxy networks, the launcher maintenance, and the sealed contingency packets. The mining rigs in Kerman produce the revenue that the patrol boats in Hormuz use to enforce the permissioned corridor. The electricity that Iranian children study without powers the hashrate that funds the IRGC Navy that collects yuan from Chinese tankers. The circuit is closed. The arbitrage is self-sustaining. And the blackouts are the cost. The regime that controls the darkness profits from the darkness. The molecules of electricity are trapped inside mining rigs while 88 million people wait for the lights to come back on. They will not come back on until the rigs turn off. The rigs will not turn off because the rigs fund the war. And the war will not end because the rigs fund it. open.substack.com/pub/shanakaans…

@SimonDixonTwitt @SimonDixonTwitt would love to hear your thoughts on iran mining bitcoin and how that has affected hashrate and driven scarcity up















