Why China’s Bitcoin Mining Activity Is Surging Again After A 4-year...
Before 2021, China controlled a large share of global Bitcoin (BTC) mining. Data from the Cambridge Bitcoin Electricity Consumption Index shows that Chinese miners produced about 65% of the world’s Bitcoin computing power in 2020.
In 2021, the Chinese government moved to stop mining activity. Authorities cited concerns about financial risks, capital outflows and the high electricity use required for mining. In September 2021, the People’s Bank of China declared all cryptocurrency transactions illegal and confirmed the nationwide ban on mining.
The immediate result was a sharp drop in global hashrate as many Chinese mining facilities closed or moved their equipment to countries such as the US, Kazakhstan and Russia.
Even though China banned crypto mining, global electricity use by BTC miners kept rising. The decline in the nation was offset by rapid growth in other countries. Yearly electricity use for Bitcoin mining increased from 89 terawatt-hours (TWh) in 2021 to about 121.13 TWh in 2023.
Mining operations have resumed in various parts of China, though they are smaller and less visible than the large farms that operated in the past.
According to Hashrate Index data reported in October 2025, China now accounts for about 14% of global Bitcoin mining, making it the third-largest mining country after the US and Kazakhstan. Analysts at the onchain research firm CryptoQuant go further, estimating that the real share of Bitcoin mining in China is between 15% and 20%.
Fast-rebounding sales of rig maker Canaan, one of the largest manufacturers of Bitcoin mining machines, also point to a resurgence in Bitcoin mining in China. China accounted for only 2.8% of Canaan’s revenue in 2022. By 2023, the figure had risen to 30%, and industry sources say it exceeded 50% in the second quarter of 2025.
Did you know? Bitcoin’s network is secured by miners competing to solve cryptographic puzzles, yet no single entity has ever controlled it long-term. Geographic shifts from China to the US to Central Asia show its resilience against political and economic disruptions.
According to a Reuters report, mining operations have restarted in Xinjiang and Sichuan over the past two years or so. Xinjiang is an energy-abundant province that has supported mining activity. Since much of its surplus energy cannot be transmitted out of the region, it is often used for crypto mining.
Many inland regions of China produce more electricity than they can efficiently transmit to coastal ci
Source: CoinTelegraph
