China’s Remarkable Bitcoin Mining Comeback
In 2021, China’s cryptocurrency mining industry faced significant disruption as the government imposed a comprehensive ban on crypto mining. This decision forced major players to relocate operations abroad, effectively removing the country from global leaderboards. However, recent developments have revealed China’s unexpected comeback in Bitcoin mining, positioning it as the third-largest contributor to Bitcoin’s global hashrate. So, how did it happen?
A Surge in Market Share Despite the Ban
By overcoming earlier obstacles, China now commands 145 EH/s of Bitcoin’s total hashrate, trailing behind the United States with 389 EH/s (representing 37.8% of the market) and Russia at 15.5%. Astonishingly, if the recovery trend continues, China could surpass Russia sooner than anticipated, with its current market share sitting at 14%.
What Enabled the Recovery?
Several factors contributed to China’s resurgence in Bitcoin mining despite the formal ban still being in place:
- Cheaper Electricity: A surplus of electricity within certain provinces made mining operations more cost-effective, especially as some Chinese local governments over-invested in data centers during previous years.
- Booming Bitcoin Prices: A significant recovery in Bitcoin value, hitting an all-time high of $126,000 in October 2025, created favorable conditions for mining profitability.
- Robust Demand for Mining Rigs: Miners in China continued to purchase specialized BTC mining rigs. Reports show that Canaan, the second-largest global manufacturer of Bitcoin mining equipment, saw its Chinese sales surge. In Q2 2025, it reported a remarkable 50% increase, with 30% of its global revenue coming from Chinese buyers in 2024 compared to just 2.2% in 2022.
Energy and Technology at the Core
Bitcoin mining is an energy-intensive process that relies on high-performance rigs to solve complex algorithms. Regions with affordable energy resources tend to attract mining operations. This reality has played a pivotal role in China’s return to the global Bitcoin mining map. Despite regulatory hurdles, some provinces have managed to create the right conditions for mining activities to flourish.
Challenges Ahead for Miners
While the Chinese Bitcoin mining industry is experiencing a resurgence, challenges remain. The Hashprice Index, which assesses mining profitability per hashrate, dropped sharply during Q4 2025, reaching as low as $34 before a mild recovery to $36. Lower profitability may destabilize operations in the short term, posing risks for miners.
What Can We Learn from This Recovery?
China’s Bitcoin mining revival underscores the resilience of the crypto industry and its ability to adapt to regulatory and economic hurdles. This resurgence also highlights how market dynamics, such as electricity costs and cryptocurrency prices, largely dictate the landscape of mining operations. For those in the market for mining rigs, cutting-edge products like the Avalon Made A1366 Miner from Canaan could be essential tools to maximize profitability.
For crypto investors and enthusiasts, this development serves as a testament to Bitcoin’s enduring influence and global adaptability, with implications for other countries looking to balance crypto regulation with economic progress.
