Iran‘s Bitcoin mining output has fallen sharply over the past quarter, shedding approximately 7 exahashes per second (EH/s) compared to the previous period, according to a new report from Hashrate Index. The country’s hashrate now stands at around 2 EH/s, based on data from the Hashrate Index heatmap. The decline coincides with an ongoing military conflict involving the US and Israel, which escalated in February following strikes against Iran and subsequent retaliatory actions from both sides. A two-week ceasefire agreement between the US and Iran was reached on Tuesday.
Ian Philpot, marketing director at Luxor Technology, authored the report published Monday and noted that while the conflict clearly affected Iran, it did not spread to neighboring countries. Both the United Arab Emirates and Oman remained unaffected despite their proximity to the conflict zone. Philpot described the disruption as contained, explaining that regional instability tends to redistribute hashrate across the network rather than eliminate it entirely. Iran is estimated to operate approximately 427,000 active Bitcoin mining rigs.
Miners form a critical part of the Bitcoin network, validating and recording transactions into new blocks. Greater miner participation raises the overall hashrate, which in turn strengthens network security. Because no single region controls enough capacity to threaten the continuity of the network, disruptions in one area are absorbed globally. The 30-day simple moving average of global hashrate declined from 1,066 EH/s in Q1 to roughly 1,004 EH/s in Q2, a 5.8% quarter-over-quarter drop.
Philpot attributed this broader decline primarily to falling Bitcoin prices rather than to the Middle East conflict. Bitcoin has dropped more than 45% from its all-time high of $126,000, set in October, pushing hash prices to record lows. Miners earn Bitcoin for each block they successfully solve, but when prices fall, those rewards can fail to cover the operational costs of running mining equipment. Philpot stated that mining profitability, rather than energy costs or regulatory policy, is the main factor driving geographic shifts in hashrate today.
Older-generation mining hardware has been hit particularly hard by the current price environment. Philpot noted that equipment with efficiency ratings above 25 joules per terahash is now operating at negative gross margins, forcing operators to shut those machines down. He estimated that approximately 252 EH/s of marginal capacity is currently offline, with most legacy hardware already retired from active use. This dynamic is reshaping the composition of the global mining network even as total hashrate remains relatively stable.
The United States continues to hold the largest share of global hashrate at over 37%, followed by Russia at around 17% and China at 12%, according to the Hashrate Index heatmap. Philpot said hashrate among the largest mining nations is broadly flat, but the underlying mix is shifting as outdated equipment goes offline and modern hardware is deployed selectively in regions where long-term profitability is viable. Canada reflects a similar pattern, showing a slight quarter-over-quarter pullback alongside positive year-over-year growth, which Philpot characterized as optimization rather than a broader retreat from the sector.
Originally reported by CoinTelegraph.
