In a remarkable turn of events, Bitcoin mining — once pushed out of China by a sweeping 2021 ban — is quietly making a comeback across several provinces. New data from 2025 shows that China has regained a substantial share of global Bitcoin mining, climbing back into the top three mining hubs in the world. This resurgence, driven by cheap electricity, surplus energy capacity, and rising global cryptocurrency prices, highlights the tension between regulatory intent and economic incentives.
📊 What the Data Shows: China Back in Mining Game
- According to recent data from Hashrate Index, China’s share of global Bitcoin mining has risen to around 14% by October 2025 — placing the country again among the top three global mining hubs.
- Some industry estimates suggest the share may even be higher — between 15% and 20%, given underground and unreported mining activity
- Mining operations have reportedly revived in energy-rich and electricity-abundant provinces such as Xinjiang and Sichuan, where surplus power — often hard to transmit out — becomes attractive for miners seeking low-cost electricity.
🔧 What’s Fueling the Comeback: Cheap Power, Idle Infrastructure & Profitability
Multiple factors have contributed to the revival of Bitcoin mining in China, even though it remains officially banned:
- Cheap and surplus electricity: Regions with overcapacity — especially surplus hydropower or coal-based electricity — appear to be quietly hosting mining operations. Miners reportedly exploit surplus energy that might otherwise go unused or be lost in transmission.
- Idle data-centre infrastructure: With growing demand for AI, data storage, and computing, many data-centre facilities that have underutilised capacity are being repurposed for crypto-mining — offering space, electricity, and internet connectivity.
- Rising profitability due to Bitcoin price rally: Recent increases in Bitcoin’s price and global demand for crypto have made mining profitable again — enough to risk operating underground.
- Soft or patchy enforcement in certain regions: Despite the ban, enforcement appears uneven or relaxed in some local jurisdictions — enabling enclaves of mining activity to resume discreetly.
⚠️ Regulatory and Risk Realities — Ban Still in Place
- The 2021 ban on cryptocurrency mining and trading remains official.
- The national regulator’s concerns — including financial risk, capital outflow, and energy consumption — continue to make mining and cryptocurrency transactions illegal in mainland China.
- The resurgence suggests a parallel, underground mining ecosystem rather than an official, legal restoration. This creates a grey area: mining machines and data-centre infrastructure may be legal, but crypto-mining remains banned.
🌐 What This Means — For Global Bitcoin, China & Crypto Regulation
- Global Bitcoin network resilience: The return of Chinese hashing power adds to global network decentralization — diversifying geographic distribution beyond just the U.S. and Russia.
- Hidden carbon and energy impact concerns: Mining in regions with coal- or fossil-fuel-based power may raise environmental concerns, undercutting efforts to reduce crypto’s carbon footprint globally.
- Regulatory tension continues: China’s quiet tolerance in energy-surplus regions may reflect a de facto softening — but as long as the ban remains, miners operate under risk of crackdown, creating uncertainty for international investors and crypto firms.
- Lessons for other nations: The Chinese case shows that outright bans may not completely eliminate crypto mining if economic incentives — cheap power, infrastructure — remain; regulatory strategies may need to account for underground activity rather than assume compliance.
🔭 What to Watch Next
- Whether Chinese authorities formally re-enforce the ban, crack down on underground mining, or move toward regulated legalization/ licensing.
- How global Bitcoin mining distribution adjusts — whether China’s share grows further, or balances out with growth elsewhere.
- Environmental audits or energy-usage scrutiny — both domestically and internationally — given rising concerns about crypto mining’s carbon footprint.
- Legal and regulatory reforms: whether China or other major economies reconsider mining bans or legislate for regulated crypto-mining frameworks.
