Key Takeaways
What has changed?
Despite the 2021 ban, there now seems to be a softer attitude, along with cheaper, plentiful electricity.
What’s next for Chinese BTC mining?
With a market share of 14%, 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 the global rankings.
However, the miners are back, and China is now back arranged third, with the country controlling 145 EH/s of Bitcoin’s hashrate. Russia comes in second with 15.5%, and the US tops the list with a market share of 37.8% or 389 EH/s of the global hashrate.
Source: Hashrate index
What’s driving the mining recovery?
According to a Reuters reportAlthough the ban was still in effect, the recovery was driven by BTC’s massive rally in 2025 and pro-crypto policies under the Trump administration.
One of the mining equipment manufacturers told Reuters that cheap electricity and readily available computing resources have also contributed to the revival of Chinese mining.
“In addition to higher bitcoin prices, a glut of electricity and computing power due to overinvestment in data centers by cash-strapped Chinese local governments has fueled the recovery.”
For perspective, Bitcoin mining is an energy-intensive process that requires specialized computers (rigs) to solve complex puzzles and find a block, which earns the miner a reward in BTC. As a result, regions with relatively cheaper electricity have attracted mining activities.
The report also noted that mining rig sales were dominated by Chinese buyers, further supporting the strong recovery.
Canaan, the second largest manufacturer of BTC mining rigs, generated 30% of its global revenue from China in 2024. In 2022, the same country was only responsible for 2.2%.
Another telltale sign was a 50% increase in Canaan sales in the second quarter of 2025. It further suggested that BTC’s price recovery from $74,000 in April to a record high of $126,000 in October could have been a catalyst for the Chinese mining recovery.
Source: Hashrate index
That being said, so does the fourth quarter decline towed the Hashprice Index, which tracks miners’ earning potential per hashrate. The price fell from $49 to a yearly low of $34, followed by a slight recovery to $36. By extension, this could impact miners’ profitability and lead to “chaos” for BTC mining.