Magnetic iron oxide nanoparticles are among metal nanoparticles that attract huge attention in many biotechnological fields especially in the biomedical area. Their extensive capabilities and easy separation methodology drive them to be an interesting point to many researchers. Biosynthesis is of a major importance among different methods of nanoparticles production. Microbial synthesis of these nanoparticles by bacteria and yeasts have been reported on a wide scale. However, biosynthesis using halophilic archaea is still in an early stage. This study reveals the first contribution of the haloarchaeon Halobiforma sp. N1 to the nanobiotechnology field. It reports a rapid and economical one-step method of fabricating functionalized superparamagnetic iron oxide nanoparticles and their feasibility for hyperthermia treatment for cancer therapy. Herein, we have focused on optimizing the quantity of these fascinating nanoparticles, obtaining a very high yield of 15 g l−1 with high dispersion in water solution. Their unique characteristics enable them to participate in medical applications. They are nearly spherical in shape with a high degree of homogenity and uniformity with average diameter of 25 ± 9 nm. Also, the magnetic properties and elemental structure of the formed nanoparticles tend to be superparamagnetic like behavior with saturation magnetization of 62 emu g−1 and purity of 98.38% of iron oxide, respectively. The specific absorption rate (SAR) was measured and the particles induced significant heating power at lower frequencies which is a promising result to be applied for in vitro/in vivo hyperthermia studies in the near future.