China Quietly Reclaims Its Bitcoin Throne — Despite the Ban
China has quietly climbed back into the global Bitcoin mining race, now holding 14% of the world’s mining share as of October 2025, despite its official ban on mining since 2021. The comeback is driven by underground operations using cheap electricity and unused data-center infrastructure in regions like Xinjiang and Sichuan.
Industry analysts say the return isn’t small. CryptoQuant estimates that 15–20% of global Bitcoin mining now happens in China, thanks to low-cost power and ready access to mining equipment.
Mining equipment manufacturer Canaan reports a strong rise in domestic sales, helped by higher Bitcoin prices and uncertainty around U.S. tariffs, which slowed international demand. Together, these factors are pushing old miners back into the field and attracting new ones.
While China hasn’t officially lifted the mining ban, recent moves suggest a softer stance. Hong Kong is working on stablecoin legislation, and discussions around yuan-backed stablecoins are emerging. These signals have helped miners feel more confident, especially in areas where electricity is cheap and infrastructure is already in place.
Even with China’s resurgence, miners everywhere are facing revenue pressure. Bitcoin’s hashprice recently hit a record low of $34.2 per PH/s, caused by weak prices, lower transaction fees, and higher network difficulty.
A small drop in difficulty, expected at just over 2% may offer temporary relief, but overall, miners continue to operate in a tight market.
China’s return shows the strength of its mining ecosystem and how powerful low-cost energy can be in the crypto world. This underground growth could reshape global mining trends, especially as miners try to balance profits with regulatory risks.