China’s Secret Bitcoin Mining Comeback: 14% Global Share Revealed

China has rebounded as a major Bitcoin mining hub, now holding about 14% of global hashrate, driven by cheap electricity and growing underground operations, despite the 2021 ban.

China has experienced a significant resurgence in Bitcoin mining, reclaiming around 14% of the global hashrate and ranking as the third-largest mining hub worldwide, despite a ban imposed in 2021. This revival is driven by access to cheap surplus electricity and underutilized data centers in energy-rich provinces such as Xinjiang and Sichuan. Underground mining operations have flourished as miners exploit excess power that cannot be transmitted out of these regions. The demand for mining equipment has surged domestically, supported by rising Bitcoin prices and reduced overseas demand due to tariffs. While the official ban remains, policy signals appear less rigid, and local conditions have enabled both individual and corporate miners to resume or expand operations. The mining sector faces challenges from declining hashprice and increased mining difficulty, but the combination of low energy costs and advanced infrastructure continues to make mining profitable. This resurgence highlights the adaptability of the industry and the strong economic incentives that persist despite regulatory barriers.