China Recaptures 14% of Global Bitcoin Hashrate Despite 2021 Ban

Despite the sweeping nationwide prohibition on cryptocurrency mining that took effect in September 2021, China is demonstrating a significant resurgence in its computational power contribution to the Bitcoin network. According to data compiled by Hashrate Index, the People's Republic of China (PRC) had reclaimed the third spot globally in the worldwide ranking by the close of October 2025. This achievement represents an accumulation of approximately 14% of the total global hashrate. This clandestine revival began in earnest with private miners restarting operations in late 2024, largely fueled by powerful economic incentives present in regions boasting substantial energy surpluses.

A primary catalyst for this underground expansion has been the ready availability of inexpensive, non-exportable electricity, particularly within provinces such as Xinjiang. A private miner operating in Xinjiang, identified only as Wang, confirmed that surplus energy, which is difficult to transmit elsewhere, is being monetized through crypto mining activities. He further noted that new projects are actively under construction across the region. CryptoQuant analysts suggest that the true footprint of Chinese mining operations might be considerably larger, potentially ranging between 15% and 20% of the worldwide total, given the inherently obscured nature of these activities. This comeback occurs while the United States maintains the leading position with 37.75% of the global hashrate (equivalent to 145 exahashes per second). Russia holds the second spot, contributing 15.51% (160 exahashes per second). Collectively, these three nations now command over 67% of the world's total computational power.

The infrastructural landscape is playing a pivotal role in facilitating this return to prominence. A glut of data center capacity, left over from prior technology booms, offers miners readily available infrastructure for both cooling and power supply. Local authorities, often grappling with fiscal constraints, are sometimes leasing or selling this existing equipment at discounted rates to offset financial shortfalls, thereby inadvertently supporting unregulated mining endeavors. The equipment manufacturer Canaan Inc. has indirectly corroborated this trend: China's share of the company's worldwide sales revenue has dramatically climbed from a mere 2.8% in 2022 to 30.3% by 2024. In the second quarter of 2025, this figure surpassed the 50% mark.

The prevailing market conditions have also provided a substantial tailwind for this renewed activity. In October 2025, the price of Bitcoin soared to an all-time high, hovering near $126,000 USD. This price point made mining highly profitable, even accounting for the subsequent correction of roughly 31%, which brought the price down to approximately $86,500 USD by the end of November. Patrick Grun, CEO of Perpetuals.com, characterized the comeback of Chinese mining as one of the most significant indicators the market has witnessed in recent years. He expressed belief that even subtle indications of policy relaxation from Beijing could provide robust support for Bitcoin as a global asset class.

This entire phenomenon forces regulators to contemplate Beijing's next move: will they opt for a formalized tolerance of mining operations, or will they reinstate stringent enforcement measures? Concurrently, within the broader financial environment, Hong Kong implemented its stablecoin legislation on August 1, 2025. Furthermore, reports suggest that Beijing is currently examining a roadmap for yuan-backed stablecoins, which could signal a cautious progression toward integrating digital assets into the national economic framework. Nevertheless, the concentration of more than two-thirds of the world's hashrate among just three countries—the US, Russia, and China—continues to raise fundamental questions regarding the decentralized nature of Bitcoin.