Iranian authorities seized numerous cryptocurrency mining equipment in the past two years, alleging the tension in the energy networks during the winter. Now, a court has ordered the release of previously seized cryptocurrency mining equipment as an energy-saving measure.
Since 2021, the Organization for the Collection and Sale of State-Owned Assets of Iran (OCSSOP) has seized mining equipment—both licensed and unauthorized—due to impending power shortages. However, the authorities changed their minds in the dead of winter and ordered the release of the seized items. As Abdolmajid Eshtehadi, head of Iran’s Ministry of Economic Affairs and Finance, explained:
“Currently some 150,000 cryptocurrency mining rigs are held by the OCSSOP, much of which will be released following court rulings. Machines have already been returned.”
However, Eshtehadi believes that recently released mining equipment could add strain to the country’s power grids. He suggested that the Transmission and Generation Company of Iran (TAVANIR) should propose plans for the use of the hardware to avoid undue stress on the nation’s grid system.
In June 2022, Iran had to cut off power to legal mining companies as the country’s electricity consumption hit an all-time high of 62,500 megawatts (MW) during consumption peaks.. At the time, Iran used to account for 0.12% of the global bitcoin (BTC) hash rate, which has now risen to 0.2%, as shown in the chart above.
Iran’s energy concerns become apparent when considering recent laws imposing a fine for illegal use of subsidized energy in cryptocurrency mining.
Secondly, Denver-based Crusoe Energy aims to help Oman, a gas-rich Middle Eastern country, reduce flaring of natural gas associated with oil drilling.
Crusoe Energy announced plans to launch a pilot project in Muscat, Oman to reuse energy from gas flaring to power mining computers. This initiative will contribute to Oman’s goal of zero gas flaring by 2030.
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