Sanctioned Countries Are Secretly Mining Bitcoin, And It's All About Hashrate
This week, HIVE Digital co-founder Frank Holmes revealed that a number of sanctioned countries are actively engaged in secret Bitcoin (BTC) mining, seeing the cryptocurrency as an alternative source of income in the face of financial restrictions from the United States.
Holmes made this point in a recent interview with Roundtable magazine. He linked the recent decline in mining difficulty around the world to military strikes on Iran's energy infrastructure, suggesting that military states are using their energy resources to mine bitcoin and create hard currency.
The comments illustrate a broader trend of governments cut off from traditional financial systems turning to cryptocurrency mining to cover economic deficits.
Holmes noted that this is not limited to Iran, hinting that other countries facing US sanctions are also conducting similar operations, although much of it remains in the shadows.
He also added that Bitcoin has become a strategic asset, especially for countries that have difficulty accessing the dollar. Mining provides a direct opportunity to accumulate capital outside the traditional financial system.
Holmes noted that mining facility outages can now be tracked through network-level data such as hashrate fluctuations.
HIVE increases production
Pointing to US adversaries using cryptocurrency mining as a financial cushion, HIVE Digital is targeting expansion in US-aligned countries.
The company recently expanded its presence in Paraguay by acquiring infrastructure to scale operations more quickly. The move required selling some of its Bitcoin holdings, but Holmes described it as a strategic tradeoff to accelerate production growth.
Paraguay's favorable regulatory environment and energy resources make the country a key location for HIVE expansion, especially compared to more politically unstable states in the region.
The move comes amid growing sentiment that bitcoin mining will continue to grow in jurisdictions that align with U.S. economic interests, particularly under the current administration.
HIVE's mining power has exceeded 14 exahashes per second (EH/s), with plans to reach 25 EH/s by the end of November. At its current performance level, the company generates approximately $315 million in annual revenue, putting it among the leaders in efficiency and scalability.
These comments highlight a changing landscape in which mining activity is not only about profitability, but is increasingly intertwined with global alliances, sanctions evasion and the projection of power through digital infrastructure.
Source: cryptonews.net
