How China Reclaimed Its Bitcoin Mining Share After the 2021 Ban

In 2021, China implemented a ban on cryptocurrency and mining to address financial instability and energy concerns. This led to significant migration among miners, resulting in China's removal from global Bitcoin mining rankings.
Despite the ongoing ban, China has risen to the third position in Bitcoin mining, contributing 145 EH/s to the hashrate. Russia follows in second with 15.5%, while the United States leads with a dominant 37.8% market share or 389 EH/s.
The resurgence of mining in China can be attributed to Bitcoin's significant price increase in 2025 and favorable pro-crypto policies. Additionally, local availability of inexpensive electricity and computational resources has played a vital role.

Key Takeaways

In 2021, China implemented a ban on cryptocurrency and mining to address financial instability and energy concerns. This led to significant migration among miners, resulting in China's removal from global Bitcoin mining rankings.
Despite the ongoing ban, China has risen to the third position in Bitcoin mining, contributing 145 EH/s to the hashrate. Russia follows in second with 15.5%, while the United States leads with a dominant 37.8% market share or 389 EH/s.
The resurgence of mining in China can be attributed to Bitcoin's significant price increase in 2025 and favorable pro-crypto policies. Additionally, local availability of inexpensive electricity and computational resources has played a vital role.

How China Reclaimed Its Bitcoin Mining Share After the 2021 Ban

The Factors Behind China's Mining Recovery

A recent report by Reuters highlights how China’s Bitcoin mining revival has occurred despite the ban still being enforced. The driving forces behind this comeback include a substantial rally in Bitcoin prices in 2025 and supportive pro-crypto initiatives during the Trump administration.

A representative from a mining rig manufacturer informed Reuters that affordable electricity and available computational resources were crucial to facilitating this revival in mining operations. They stated, “Along with rising Bitcoin prices, an excess of electricity and computing power—resulting from over-investment in data centers by financially strained local governments—have bolstered the resurgence.”

It's important to understand that Bitcoin mining is an energy-intensive activity. It involves specialized computers (referred to as rigs) solving intricate puzzles to discover new blocks and earn Bitcoin as a reward. Consequently, areas where electricity is more affordable tend to attract more mining operations.

The report further indicated that the market for mining rigs has seen a notable increase in sales from Chinese buyers, adding strength to the recovery. For instance, Canaan, one of the largest manufacturers of BTC mining rigs, reported that 30% of its total revenue came from China in 2024, a significant rise compared to just 2.2% in 2022.

Moreover, during the second quarter of 2025, Canaan experienced a remarkable 50% increase in sales, which suggests that the rebound in Bitcoin prices—from $74,000 in April to an all-time high of $126,000 in October—may have been a catalyst for China's resurgence in mining activities.

Bitcoin Mining Chart

Despite this recovery, the fourth quarter saw a downturn that impacted the Hashprice Index, which measures miners' earnings potential per hashrate. This index fell from $49 to a low of $34 before recovering modestly to $36. This decline could affect the profitability of mining operations and potentially lead to turbulence in the Bitcoin mining sector.