China's Share of Bitcoin Mining Exceeds 14%

Mining

Expert calls the revival of crypto mining in the PRC “one of the most important signals” for the market

Crypto mining in China is experiencing a “quiet revival.” The country’s share of global hashrate has risen to 14%, Reuters reports.

According to TheMinerMagazine, as of early October, this equaled roughly 145 EH/s, a 13.8% increase in one quarter. Experts emphasized that mining never truly left China — the activity simply “went underground.”

The former global leader in crypto mining banned all cryptocurrency operations in 2021, citing threats to financial stability and energy security. After dropping to zero globally, Beijing has gradually returned to third place.

Hashrate by country at the start of Q4. Source: Hashrate Index.

A private miner from Xinjiang told Reuters that he resumed mining in late 2024.

“A lot of energy cannot be transmitted outside Xinjiang, so it is consumed through crypto mining. New facilities are being built — people mine where electricity is cheap,” he said.

Xinjiang — China’s largest administrative region — spans over 1.6 million sq km, about one-sixth of the country. It is sparsely populated and has cheap electricity, which historically supported industrial operations outside centralized grids.

Before the official ban, Xinjiang was considered the informal capital of Bitcoin mining.

In June, users on X reported police raids on mining farms in the region. Unconfirmed reports stated that hundreds of thousands of mining devices were seized.

One of the most important signals

The revival of mining coincided with Bitcoin hitting a new all-time high above $126,000 in October and the pro-crypto stance of U.S. President Donald Trump’s administration.

“China's political flexibility shows when economic incentives are strong in certain regions.
The revival of mining activity in China is one of the most important signals the market has seen in years,” said Patrick Gruhn, CEO of Perpetuals.com.

China has not officially lifted restrictions, but “even hints of easing could act as a tailwind for Bitcoin’s narrative as a sovereign asset resistant to state interference,” the expert added.

Another source from Sichuan, who stopped mining due to the ban, noted that some of his friends have returned:

“It’s a sensitive area… But people with cheap electricity still mine.”

Lawyer Liu Honglin of Man Kun firm stressed that it is difficult to eliminate a profitable business.

“Personally, I believe the state’s policy toward mining will gradually soften, because it’s impossible to completely stop such activity.”

Industry data supports the trend

ASIC miner manufacturer Canaan has seen a sharp increase in revenue from China:

• 2022: 2.8%

• 2023: 30.3%

• Q2 2025: over 50%

The company said its operations fully comply with Chinese laws. Producing and selling mining hardware is not prohibited.

In January 2024, WSJ also reported on methods used to bypass China’s crypto trading restrictions.

See also: "The decline in the crypto market has hit Donald Trump’s wealth."

#Mining #China #Ranking

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