Key Takeaways
What changed?
Despite the 2021 ban, there appears to be a softer stance now, alongside cheaper, abundant electricity.
What’s next for China’s BTC mining?
At 14% market share, it could surpass Russia’s 15.5% if the recovery trend continues.
In 2021, the Chinese government banned crypto and mining, citing financial instability and energy risks. It forced key Chinese players to flee to other regions and removed the country from global rankings.
However, miners are back, and China is now ranked third, with the country commanding 145 EH/s of Bitcoin’s hashrate. Russia is second with 15.5%, and the U.S tops the list with a 37.8% market share or 389 EH/s of the global hashrate.
Source: Hashrate Index
What’s driving the mining recovery?
According to a Reuters report, the recovery, despite the ban still being in place, was driven by BTC’s massive rally in 2025 and pro-crypto policies under the Trump administration.
One of the mining rig manufacturers told Reuters that cheap electricity and readily available computational resources also contributed to the Chinese mining resurgence.
For perspective, Bitcoin mining is an energy-intensive process that requires specialized computers (rigs) to solve complex puzzles and find a block, earning the miner a reward in BTC. As a result, regions with relatively cheaper electricity have attracted mining operations.
The report also noted that mining rig sales were dominated by Chinese buyers, further supporting the strong rebound.
Canaan, the second-largest manufacturer of BTC mining rigs, generated 30% of its global revenue from China in 2024. In 2022, the same country only accounted for 2.2%.
Another telltale sign was a 50% surge in Canaan sales in Q2 2025. It further suggested that BTC’s price recovery from $74k in April to a record high of $126k by October could have been a catalyst for China’s mining recovery.
Source: Hashrate Index
That being said, Q4’s drawdown also dragged the Hashprice Index, which tracks miners’ earning potential per hashrate. It fell from $49 to a yearly low of $34 before a mild recovery to $36. By extension, this could affect miner profitability and could trigger “chaos” for BTC mining.
Source: https://ambcrypto.com/explaining-how-china-regained-its-bitcoin-mining-share-despite-2021-ban/
