Bitcoin mining in China rebounds, defying 2021 ban

Bitcoin mining is making a quiet comeback in China, four years after the government banned the industry. Individual and enterprise miners are leveraging cheap electricity and a fast-growing data center landscape in energy-rich regions to resume activity, according to industry reports.

Before the 2021 ban, China was the world’s largest Bitcoin mining hub. After its market share fell to zero, the country has now rebounded to third place with a 14% global mining share as of October, according to Hashrate Index. Mining equipment maker Canaan has also reported rapidly growing sales in China, suggesting a renewed demand that could support higher Bitcoin prices.

Miners in provinces like Xinjiang are taking advantage of power surpluses that cannot be exported efficiently. “People mine where electricity is cheap,” said Wang, a private miner in the region, noting that new projects are already underway.

Beijing’s 2021 crackdown pushed many miners overseas, including to North America and Central Asia. The revival coincides with Bitcoin’s strong performance in October, boosted by pro-crypto policies under US President Donald Trump and rising skepticism of the U.S. dollar. Although prices have since cooled, the improving profitability still attracts miners.

Analysts suggest that while China has not formally eased restrictions, economic benefits at regional levels are driving practical policy flexibility. Bitcoin mining remains most active in provinces with abundant power resources and underutilized infrastructure.

Canaan’s financial data highlights the trend: China contributed 30.3% of its global revenue last year, up from just 2.8% in 2022. In Q2 of this year, China reportedly accounted for over half its sales. The company attributes the surge to tariff uncertainty in the U.S., stronger Bitcoin prices, and shifting regulatory sentiment within China.

Although mining itself remains officially prohibited, activities like R&D, manufacturing, and sales of mining equipment are still allowed. Meanwhile, signals such as Hong Kong’s new stablecoin regulation and discussions around yuan-backed stablecoins indicate a softer national stance on digital assets.

Research firm CryptoQuant estimates that 15–20% of global Bitcoin mining capacity now operates in China. Industry observers believe that given its profitability, mining activities will persist and may eventually prompt further relaxation of national policies.

Source: Reuters

Voice of Osiz

China’s gradual re-emergence in Bitcoin mining reflects an important shift in how global markets are adapting to digital asset infrastructure. From Osiz s’ perspective, this development demonstrates that economic value and technological growth continue to influence policy direction, even in previously restrictive regions. The resurgence of mining operations, driven by access to excess power, strong hardware demand, and the broader maturation of crypto markets, signals renewed competitiveness in Asia. This resurgence further reinforces the need for scalable, energy-efficient, and sustainable blockchain solutions that align long-term industry growth with technological evolution.