Co-founder of Hive explains the connection between sanctions and bitcoin mining

Countries under US sanctions are secretly using Bitcoin mining to gain access to financial flows. This was stated by Hive Digital co-founder Frank Holmes during TheStreet podcast.

He noted that the drop in June of the hash rate and difficulty of the first cryptocurrency by 15% occurred after the bombings of Iran by the aviation of Israel and the United States.

"Why? Because Iranian military forces were essentially mining bitcoins illegally to obtain US dollars, and the power plants suffered," he concluded.

According to him, this is not just about this Middle Eastern country. Holmes noted that the governments of such states are not associated with a favorable policy for the crypto industry.

"They do everything possible, and when they cannot obtain dollars, they start mining bitcoins," Holmes emphasized.

In response to host Scott Melker's question about how many jurisdictions are secretly involved in this, the executive chairman of Hive replied:

"This will come to light and prove to be a significant source of income for the 'Axis of Evil'. There is no doubt about it."

According to Hashrate Index, at the beginning of 2025, the USA dominated Bitcoin's hashrate with a share of 38%. Russia accounted for 16%, while Iran's figure ranged from 1-2%.

Melker also inquired about Hive's implementation of the stated strategy for preserving mined coins. Holmes confirmed that the company adheres to this policy but does not neglect the sale of digital gold to expand its business. For example, part of the reserves was liquidated to buy mining capacities from Bitfarms in Paraguay.

At the same time, Holmes noted that the result was an increase in coin production. In dollar terms, Hive's revenue is about $760,000 per day and is expected to grow to $3 million as the hash rate increases, he added.

According to BitcoinTreasuries, the company holds 2201 BTC.

Let us remind you that JPMorgan analysts have called July a successful month for public bitcoin miners — their income per 1 EH/s reached the highest level since the last halving.