Bitcoin mining is experiencing a resurgence in China, despite a ban that was imposed four years ago. Individual and corporate miners are now exploiting cheap electricity and a data‑center boom in energy‑rich provinces, according to a Reuters report. This revival has allowed China to reclaim its status as a major hub for bitcoin mining, with CryptoQuant estimating that 15 %–20 % of global bitcoin mining capacity currently operates in the country.
China was once the world’s largest crypto‑mining nation until the government prohibited all cryptocurrency trading and mining in 2021, citing threats to financial stability and energy conservation. Since then, China has slipped to third place in global bitcoin‑mining market share, holding a 14 % share as of October, according to the Hashrate Index. The rebound is driven by several factors: abundant cheap electricity, a surplus of computing power, higher bitcoin prices, and a subtle shift in China’s digital‑asset posture.
The resurgence is reflected in the performance of Canaan, the world’s second‑largest bitcoin‑mining machine maker. Canaan’s sales in China surged, with the country accounting for 30.3 % of its global revenues last year, up from just 2.8 % in 2022. This renewed mining activity has significant implications for the global cryptocurrency market. Increased mining could provide demand and price support for bitcoin, which has been in a downturn in recent months, and may signal a softening of China’s stance on digital currencies.
China’s evolving attitude toward digital coins is also evident in regulatory developments elsewhere in the region. Hong Kong’s stablecoin bill, taking effect in August, positions the city to compete with the United States in fostering a regulated market for fiat‑backed cryptocurrencies. Meanwhile, mainland China is considering the use of yuan‑backed stablecoins to promote wider global adoption of its currency.
Overall, the rebound of bitcoin mining in China underscores the complexities of the global cryptocurrency landscape. As the market continues to evolve, China’s rich energy resources and growing demand for computing power suggest that bitcoin mining will likely continue to thrive there, despite the official ban, and that the country will play an increasingly important role in shaping the future of digital currencies.
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