China Quietly Reclaims Its Place in Global Bitcoin Mining With 14% Hashrate Share

Key Takeaways: 

• China now controls 14% of global Bitcoin mining activity, ranking third behind the United States and Russia.
• The resurgence occurs despite a continued ban, driven by access to inexpensive electricity in regions like Xinjiang and Sichuan.
• Geopolitical and economic factors are generating hope that Beijing may consider regulating, rather than prohibiting, mining operations.

A new Reuters report, citing data from the Hashrate Index, confirms China's significant return to Bitcoin mining. As of late October, the country's mining operations accounted for 14% of the global network's processing power, or hashrate.

This translates to a total output of 145 exahashes per second (EH/s), placing China behind only the United States (37.75%) and Russia (15.51%) in global ranking. 

The United States, now the undisputed leader in Bitcoin mining, has seen its own hashrate increase. This growth is partly attributed to the industry-friendly policies adopted during the Trump administration.

China’s Tumultuous History With Bitcoin Mining and Regulation

The relationship between China and Bitcoin mining has been tumultuous. In the mid-2010s, the country was a global hub for crypto trading and mining. 

This era ended in 2017 when the government banned digital asset transactions, citing risks to financial stability. The move forced numerous exchanges and brokerages to relocate.

$BTC
China’s quiet return to Bitcoin mining is the most underpriced macro shift in the market right now 🤯

Hashrate share surging back towards 15–20% despite the 2021 ban tells you two things 🤓

1️⃣Regulatory crackdowns don’t kill Bitcoin, they simply decentralize it.

2️⃣China’s… pic.twitter.com/3nzn2bei0V

— Earnest Hamilton (@FinancialErnie) November 24, 2025

However, Bitcoin mining continued to thrive in China. An abundance of cheap electricity, particularly from hydropower, provided a continued incentive. 

Every government that banned Bitcoin made the same mistake.

They thought they were fighting a company.

They were fighting a protocol.

I analyzed 50 countries over 12 years. Here is what the data proves:

China banned Bitcoin in 2021. Total ban. Mining. Trading. Everything.… pic.twitter.com/5fz4iVIAPa

— Shanaka Anslem Perera ⚡ (@shanaka86) November 24, 2025

For years, the government appeared to turn a blind eye to the thriving local mining industry.

In 2021, the Chinese government eventually imposed a blanket ban on Bitcoin mining operations within the country as well. 

At the time, the government claimed that “illegal” Bitcoin mining had been a threat to energy security in the country, prompting the ban. As a result, China’s share of the global Bitcoin hashrate fell from about 55% to essentially 0%, causing other countries to step up and fill the vacuum. 

Underground Operators, Cheap Power, and a Potential Policy Shift

Despite the official ban, mining never fully ceased. 

According to the new Reuters report, miners have quietly continued operations, primarily in provinces with access to abundant, cheap power such as Xinjiang and Sichuan. 

These regions have become hotbeds for underground mining activity. The economic incentive is clear, especially with the recent rise in Bitcoin's price.

This resurgence is further corroborated by industry data. 

Canaan Creative, a major Chinese manufacturer of mining equipment, has reported an increase in domestic sales. 

While the regulatory ban remains officially in place, its enforcement appears inconsistent. 

比特大陆詹克团已经失联3个月了，据说和国内新疆挖矿有关，公安扫了新疆的多个数据中心，已经扣押了几十万台矿机，比特大陆专门做国内业务的海南大陆方舟公司，老板王铭已经跑路，在新疆的相关负责人也被带走了，国内矿圈风声鹤唳，国家有大动作了，矿圈的兄弟们尽量避避风头。

— 矿圈G哥 (@jjeesssd) June 10, 2025

This is not to suggest operations are without risk; police raids on mining farms, such as one in Xinjiang this past June that resulted in the seizure of thousands of units of equipment, demonstrate the ongoing legal peril.

The scale of the current mining activity has led to speculation that Beijing may reconsider its outright ban. 

Regulating the industry could provide the government with significant tax revenues and greater oversight. 

Furthermore, establishing a foothold in a foundational technology of the digital asset space aligns with broader geopolitical ambitions to influence the future of finance. An additional geopolitical factor may be emerging. 

Recent reports from Bloomberg suggest that Bitmain, a leading mining hardware manufacturer originally founded in China, is under investigation by U.S. federal agencies. 

Should these findings lead to sanctions, the company could be compelled to strengthen its domestic ties.