Bitcoin Mining Strains Power Grids in Iran and Libya Amid Energy Crises

News Flash 2026-02-02 10:46

Iran and Libya are grappling with severe power shortages exacerbated by rampant Bitcoin mining, which exploits their heavily subsidized electricity. In Iran, where industrial electricity costs as low as $0.01 per kilowatt-hour, Bitcoin mining has surged, consuming significant power resources. Despite government efforts to regulate the industry, illegal mining operations continue to thrive, often diverting electricity from essential services like hospitals and schools. Libya faces a similar situation, with electricity priced at just $0.004 per kilowatt-hour due to government subsidies. This has turned the country into a haven for outdated mining equipment, which remains profitable despite its inefficiency. The mining activities, often conducted in abandoned industrial sites, consume about 2% of Libya's total electricity, further straining an already fragile power grid. Both countries illustrate the complex interplay between energy policy and cryptocurrency mining, highlighting the challenges of managing public resources in the face of economic and technological pressures.

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