A Quiet Resurgence

Despite a comprehensive government ban enacted in 2021, Bitcoin mining is experiencing a significant resurgence in China. Once the undisputed global leader, the nation has quietly reclaimed its position as a major player. According to data from the Hashrate Index reported in October 2025, China now contributes approximately 14% of the global Bitcoin mining hashrate, ranking third behind the United States and Kazakhstan. Some analysts believe the actual figure is even higher, with on-chain research firm CryptoQuant estimating China’s share to be between 15% and 20%.

This rebound is also reflected in hardware sales. Canaan, a leading manufacturer of Bitcoin mining machines, saw its revenue from China plummet to just 2.8% in 2022 following the crackdown. By 2023, that figure had climbed to 30%, and industry sources report it surpassed 50% in the second quarter of 2025, signaling a robust domestic demand for mining rigs.

The 2021 Crackdown and Global Shift

Before the ban, China’s dominance was staggering. In 2020, data from the Cambridge Bitcoin Electricity Consumption Index showed that Chinese miners were responsible for about 65% of the world’s total Bitcoin computing power. However, in 2021, the government moved decisively to shut down the industry, citing concerns over financial instability, capital flight, and the immense electricity consumption associated with mining.

In September 2021, the People’s Bank of China declared all cryptocurrency transactions illegal, solidifying the nationwide ban. The immediate consequence was a sharp decline in the global hashrate as Chinese mining operations either shuttered or relocated their equipment to more welcoming countries like the U.S., Russia, and Kazakhstan. Interestingly, while mining activity in China collapsed, the network’s overall electricity consumption continued to grow, increasing from 89 terawatt-hours in 2021 to over 121 TWh in 2023 as operations expanded elsewhere.

The Economic Drivers of the Comeback

The resurgence isn’t happening in the open but in the energy-rich inland provinces of Xinjiang and Sichuan. A key factor is the availability of cheap, underutilized electricity. These regions often generate more power, primarily from coal and hydropower, than they can transmit to the country’s coastal economic hubs. This surplus, or “stranded,” energy provides an ideal, low-cost power source for mining operations.

Another contributor is the overdevelopment of large data centers. When these facilities face lower-than-expected demand from traditional clients, their owners can turn a profit by renting space and power to discreet Bitcoin miners. Combined with the rising price of Bitcoin since 2024, which has significantly boosted profitability, these conditions have created a fertile environment for mining to return.

A Broader Shift in Digital Asset Policy

The revival of mining may also hint at a subtle evolution in China’s official attitude toward digital assets, moving from outright rejection to selective, strategic acceptance. Beijing appears to be growing more open to regulated digital asset infrastructure that aligns with its national economic goals.

This nuanced approach is evident in Hong Kong, a Special Administrative Region of China, which implemented a licensing framework for stablecoins that took effect in August 2025. On the mainland, authorities are exploring the potential of yuan-backed stablecoins to internationalize the renminbi. At the same time, China is aggressively pushing its central bank digital currency, the e-CNY, integrating it into retail payments and cross-border pilot programs. These developments suggest a future where a complete ban gives way to controlled experimentation with digital assets that serve state interests.