China Reenters the Global Bitcoin Mining Arena

China's underground Bitcoin mining sector is witnessing a resurgence, four years after the government imposed a ban on the activity. Recent data indicates that China has reclaimed a substantial share of global mining power.

Key Takeaways

China now holds 14% of the global Bitcoin hashrate, placing it third worldwide.
The mining activity is especially prominent in Xinjiang due to cheap power and enhanced infrastructure.
Sales of mining equipment have surged, indicating a recovery in the sector.
Although Bitcoin prices have been volatile, mining remains profitable, driving new investments.
Observations suggest a potential shift in China's regulatory stance towards digital currencies.

China Bitcoin Mining

China's Mining Position Reclaimed

Recent insights from Hashrate Index reveal that China now contributes to 14% of the global Bitcoin hashrate, equating to approximately 145 exahashes per second. This marks a notable return to a third-place ranking globally, with the United States leading at nearly 38%, followed by Russia at over 15%. These statistics are derived from IP-based measurements, which may be influenced by VPN usage in areas where mining is still prohibited. Nonetheless, these figures emphasize a recovery in China's mining capabilities.

This revival is occurring even without any change in government policy; China has maintained its ban on all cryptocurrency mining and trading since 2021. There have been no indications from the central bank or state planners suggesting a more lenient approach. However, mining activities are rebounding mainly due to favorable economic conditions in remote regions with abundant excess energy.

Xinjiang Becomes the Hub of Mining Activity

The resurgence of mining is most pronounced in Xinjiang, where miners exploit low energy costs and a robust data infrastructure. According to a report from Reuters, private operators began reviving their activities in late 2024, and new mining facilities are currently under construction. Xinjiang's plentiful power supply—much of which cannot be exported beyond the region—has made it an ideal center for clandestine mining operations. This favorable environment has allowed miners to expand rapidly, despite the existing regulatory challenges.

Equipment Sales Reflect Growing Mining Operations

The revival in China's mining industry is also evident from the equipment market. Canaan Inc., one of the largest manufacturers of Bitcoin mining machines, reported that 30.3% of its global revenue in 2024 originated from China, a significant rise from just 2.8% in 2022. A knowledgeable source indicated that China represented over half of the company's sales in the second quarter of 2025. Supporting this trend, CryptoQuant estimates that 15% to 20% of the world’s Bitcoin mining capacity now resides in China, underscoring a broader and sustained recovery.

Bitcoin Price Volatility Fuels Mining Growth

The expansion in mining operations has coincided with notable fluctuations in Bitcoin prices. The cryptocurrency soared to an all-time high of $126,200 in October but has since dropped to $80,600, reflecting a decline of over 33%. Even amid this price volatility, higher Bitcoin prices have kept mining operations profitable, motivating both new investments and the revival of previously inactive mining setups across China.

Signs of a Possible Strategic Regulatory Shift

Despite the ongoing national ban, several recent developments hint at a potential shift in China's approach to digital assets. The stablecoin framework established by Hong Kong in August 2025 suggests a willingness to explore regulated digital currency systems. Concurrently, Beijing is considering a plan for yuan-backed stablecoins, which could facilitate the international use of the Chinese currency.

In light of these factors, Patrick Gruhn from Perpetuals.com remarked that China's mining resurgence is “one of the most important signals” the marketplace has observed in years, reflecting growing industry optimism that regulatory changes may be on the horizon. With the United States, Russia, and China collectively controlling over 67% of the global Bitcoin hashrate, analysts highlight the rising risks of centralization affecting the network's decentralization and overall resilience.

Disclaimer: This content is meant for informational purposes and should not be interpreted as financial advice. The opinions expressed in this article are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.