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China Quietly Reclaims No. 3 Spot in Bitcoin Mining Despite 2021 Ban

Cheap power, unused data centers, softer enforcement enable covert operations.

Overview

  • Hashrate Index estimates China held about 14% of global bitcoin hashrate by late October, returning it to third place worldwide.
  • CryptoQuant gauges China’s share at roughly 15%–20%, highlighting the uncertainty of location data where miners hide activity.
  • Underground operations cluster in Xinjiang and Sichuan as surplus electricity and legacy data-center capacity lower mining costs.
  • Canaan’s filings show China generated 30.3% of its 2024 revenue, with a source saying domestic sales exceeded 50% in Q2 2025, signaling stronger local demand for rigs.
  • The ban remains official as Hong Kong’s new stablecoin regime and discussions of yuan-backed tokens suggest a softer policy tone, even while record-low hashprice squeezes miner margins.