Iran Releases Seized Crypto Mining Equipment Following Court Order…But Why?
Iranian authorities previously seized crypto mining equipment over the past few years because they believed it was causing stress on the energy grid, particularly during winter. However, a court has recently ordered the release of this equipment due to concerns about power shortages.
The Organization for Collection and Sale of State-Owned Property (OCSSOP) has seized both authorized and unauthorized mining equipment in an effort to conserve energy.
Abdolmajid Eshtehadi, the head of Iran’s Ministry of Economic Affairs and Finance, said, “Currently some 150,000 crypto mining equipment are held by the OCSSOP, a large part of which will be released following judicial rulings. Machines have already been returned.”
Nevertheless, Eshtehadi is concerned that the release of the seized mining equipment could potentially cause additional strain on Iran’s energy grid. He recommends that the Generation and Transmission Company of Iran (TAVANIR) comes up with a plan for how to use the hardware in a way that won’t put too much pressure on the country’s energy system.
In June 2022, Iran was forced to reduce the electricity supply to legal mining companies because the country’s energy consumption reached a record high of 62,500 megawatts (MW) at peak usage. At that time, Iran accounted for 0.12% of the global Bitcoin hash rate, but this has now increased to 0.2%, according to the provided grap.
Iran has recently implemented laws that impose fines for the illegal use of subsidized energy for crypto mining, which highlights the country’s energy concerns.
In contrast, Crusoe Energy, based in Denver, is working to help Oman, a Middle Eastern country with a lot of natural gas, reduce gas flaring, which is the burning of natural gas during oil extraction.
Crusoe Energy plans to open a pilot project in Muscat, Oman that will use the energy from gas flaring to power mining computers, which will help the country achieve its goal of zero gas flaring by 2030.
