China Rejoins Top Three Global Bitcoin Miners

China’s covert Bitcoin mining industry is expanding again, four years after the government outlawed the practice.

Fresh data suggests the country has quietly regained a significant share of global mining power.

China Reclaims Third Position in Global Hashrate

According to Hashrate Index, China now accounts for 14% of global Bitcoin hashrate, or about 145 exahashes per second. This renewed position places the country third worldwide.

The United States leads with nearly 38%, while Russia follows with more than 15%. These figures rely on IP-based measurement, which can be skewed by VPN use in regions where mining remains restricted. Nevertheless, the estimates highlight an apparent resurgence in China’s mining footprint.

Interestingly, this resurgence comes despite no policy change since Beijing banned all crypto mining and trading in 2021. China’s central bank and state planners have not signaled any softening of that stance.

Yet, mining continues to return, largely driven by attractive economics in remote regions where excess energy remains abundant.

Xinjiang Becomes the Center of Renewed Activity

Reuters reported that the revival is most visible in Xinjiang, where miners have leveraged cheap power and growing data infrastructure. The report added that private operators have resumed activity in late 2024, and new facilities are now under construction.

Xinjiang’s ample power supply, much of which cannot be exported outside the region, has made it a natural hub for underground mining. This environment has allowed operators to scale quickly despite regulatory risks.

Hardware Sales Strengthen Evidence of Return

Furthermore, this rebound is also reflected in the equipment market. Canaan Inc., one of the largest global producers of Bitcoin mining machines, derived 30.3% of its worldwide revenue from China in 2024, a sharp increase from 2.8% in 2022.

According to a source with direct knowledge of the company’s performance, China accounted for more than half of its sales in the second quarter of 2025.

Backing this trend, CryptoQuant estimates that 15–20% of global Bitcoin mining capacity may now reside in China. Together, these figures further confirm a broad, sustained rebound.

Price Swings Add Fuel to the Mining Rebound

Meanwhile, the mining expansion has also coincided with notable fluctuations in the Bitcoin price. The world’s largest cryptocurrency climbed to a record $126,200 in October and has dropped to $80,600 since then. This marks a decline of over 33%.

Despite the volatility, elevated prices have kept mining profitable. This has encouraged both new investment and the revival of older, dormant operations across China.

Indications of a Possible Strategic Shift

Although the national ban remains in place, several recent developments suggest a more nuanced stance toward digital assets. Hong Kong’s stablecoin framework, which took effect in August 2025, has signaled a willingness to explore regulated digital currency systems.

At the same time, Beijing is reviewing a plan for yuan-backed stablecoins, which could help promote the Chinese currency abroad. 

In this context, Patrick Gruhn of Perpetuals.com said in a public statement that China’s mining resurgence is “one of the most important signals” the market has seen in years. His comment confirms growing industry expectations that policy could evolve.

With the United States, Russia, and China now controlling more than 67% of global Bitcoin hashrate, analysts warn of increasing centralization risks.

Specifically, heavy concentration across three countries could influence the network’s decentralization and resilience.