HIVE Digital co-founder Frank Holmes stated this week that several sanctioned nations are actively mining Bitcoin (BTC) in secret, turning to the crypto as an alternative revenue stream in the face of U.S. financial restrictions.
Holmes made the claims during a recent interview with the Roundtable. He tied a recent drop in global mining difficulty to military strikes targeting power infrastructure in Iran, suggesting the country’s military was using energy resources to mine Bitcoin and generate hard currency.
The comments reflect a broader trend in which governments cut off from traditional financial systems are leveraging crypto mining to fill economic gaps.
Holmes said this is not limited to Iran, implying that other countries facing US sanctions are also participating in similar operations, though much of it remains undisclosed.
He further claimed that Bitcoin has become a strategic asset, especially for nations struggling to access dollars. Mining provides a direct route to accumulate value outside the traditional financial ecosystem.
Holmes said that disruptions to mining facilities can now be observed in network-level data such as hash rate fluctuations.
HIVE ramping up production
While pointing to adversaries of the US using crypto mining as a financial lifeline, HIVE Digital is pursuing growth in U.S.-aligned nations.
The company recently expanded its footprint in Paraguay, acquiring infrastructure to scale operations more rapidly. The decision required divesting a portion of its Bitcoin holdings, but Holmes described it as a strategic trade-off to accelerate production.
Paraguay’s supportive regulatory stance and energy resources make it a key location for HIVE’s expansion, particularly compared to more politically volatile countries in the region.
The move comes amid growing sentiment that Bitcoin mining will continue to flourish in jurisdictions aligned with U.S. economic interests, particularly under the current administration.
HIVE has now surpassed 14 exahashes per second (EH/s) in mining capacity, with a goal of reaching 25 EH/s by the end of November. At current output, the company is generating approximately $315 million in annualized revenue, placing it among the top contenders in terms of efficiency and scale.
The remarks highlight a shifting landscape where mining activity is not just about profitability, but increasingly intertwined with global alliances, sanctions evasion, and power projection through digital infrastructure.
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