Iran’s Rial Hits Record Low Amid New U.S. Sanctions Targeting Bitcoin Mining

Iran’s open‑market exchange rate fell to roughly 2.02 million rials per U.S. dollar on August 24, a record low that coincided with the launch of a sweeping U.S. sanctions package.

New Sanctions Target Digital Assets

The Treasury announced “Operation Economic Outcast” on August 19, adding more than 60 entities to its blacklist and, for the first time, designating digital assets as a sanctionable sector alongside technology, gold, aviation and shipping. Treasury Secretary Scott Bessent said the aim is to cut off Iran’s state‑run Bank Melli from dollar access and warned that secondary sanctions could follow against trading partners.

Impact on Iran’s Bitcoin Mining

State‑affiliated farms linked to the Islamic Revolutionary Guard Corps (IRGC) are estimated to control about 65 % of Iran’s bitcoin mining capacity. Since legalising mining in 2019, Iran has allowed licensed operators to use subsidised industrial electricity (≈ $0.004 /kWh) in exchange for selling mined coins to the central bank. Iranian miners have contributed roughly 3 %–7 % of global bitcoin hashrate, generating between $1.35 billion and $3.15 billion in bitcoin at various times.

Broader Crypto Ecosystem Under Pressure

Iran’s crypto ecosystem was valued at $7.78 billion last year. Chainalysis reported that IRGC‑linked wallets received over $3 billion in the fourth quarter of 2025, while Elliptic identified at least $507 million in USDT held by the central bank to support the rial.

The U.S. has previously sanctioned Iranian exchanges such as Nobitex, Wallex, Bitpin and Ramzinex. Nobitex alone handled more than half of Iran’s digital‑asset inflows and facilitated the central bank’s stablecoin movements. A cyber‑attack in mid‑2025 led to a $90 million loss at Nobitex and a subsequent $500 million seizure of Iran‑linked crypto assets by the Treasury.

Economic Outlook

The International Monetary Fund projects Iran’s annual inflation to average 68.9 % in 2026 and an economy contraction of 5.4 %. Food prices, including rice and beef, have risen sharply amid the monetary pressure.

Potential Risks for Mining Operations

Beyond sanctions, Iran’s power grid is already strained. Any further military escalation or electricity rationing could disrupt the IRGC‑linked mining farms more effectively than financial restrictions alone.