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Iran's Bitcoin mining operations thrive on low electricity costs of approximately $0.004 per kilowatt-hour, allowing miners to produce Bitcoin at about $1,320 each, contrasting sharply with costs exceeding $75,000 in the U.S. The IRGC's involvement and an estimated $7.78 billion crypto ecosystem highlight the strategic importance of mining for the Iranian economy, particularly in evading sanctions. Despite the profitability, the sector faces challenges from an aging power grid, military strikes damaging infrastructure, and regulatory pressures, as the government must balance mining revenues with civilian electricity needs.