As geopolitical tensions rise between Iran, the United States, and Israel, attention has turned to an unexpected tool that analysts say Iran has used to sustain parts of its economy: cryptocurrency.
Despite years of economic sanctions that have limited Iran’s access to global banking networks, the country has expanded its use of Bitcoin mining and digital assets to move funds internationally and support trade outside traditional financial systems.
Western sanctions have largely cut Iran off from the SWIFT international banking system, making it difficult for the country to conduct cross-border financial transactions.
In response, Iran has explored alternative financial channels, including cryptocurrencies. By mining Bitcoin domestically and transferring it through digital wallets, payments can move across borders without relying on banks or dollar-based payment networks.
This approach allows transactions to bypass many of the financial controls that governments typically enforce through the global banking system.
One part of this strategy is large-scale Bitcoin mining. Iran has access to relatively cheap energy resources, which helps reduce the cost of producing new bitcoins.
The cost of mining a single Bitcoin in Iran can be around $1,300, while the global market price of Bitcoin has been trading near $68,000. However, analysts say the potential 50-times return on investment is largely driven by Iran’s heavily subsidized electricity prices, which significantly lower the cost of Bitcoin mining.
The Iranian government legalized Bitcoin mining in 2019, viewing it as a way to generate foreign currency despite international sanctions. At the same time, experts estimate that around 90% of mining activity takes place illegally.
(adsbygoogle = window.adsbygoogle || []).push({});Blockchain analytics firm Chainalysis estimates that the country’s crypto ecosystem had reached roughly $7.78 billion in 2025. Data shows IRGC-linked networks received over $3B in crypto transfers during 2025.
Blockchain monitoring groups have also observed spikes in cryptocurrency activity during periods of military escalation. Between February 28 and March 2, roughly $10.3 million flowed out of Iran’s largest cryptocurrency exchange, Nobitex.
Data from Chainalysis showed that early outflows during the peak period were about 873% higher than the average levels seen in 2026.
Related: Iran’s Multi-Billion Dollar Cryptocurrency Market Faces New Scrutiny Amid Conflict
