China reclaims No. 3 in Bitcoin mining with about 14% global share

China is quietly rejoining the global bitcoin mining scene, reclaiming roughly 14% of the world’s hashrate despite a formal ban issued in 2021. The revival is fueled by affordable electricity, abundant data-center capacity, and more nuanced policy signals that have encouraged underground activity in several key provinces.

What’s happening

• China’s share of global mining has climbed back to about 14% by October, according to Hashrate Index, placing the country third after a near disappearance from the market.
• The resurgence is concentrated in Xinjiang and Sichuan, where excess power and rapid data-center development create favorable conditions. Some former miners have returned, and new underground projects are emerging.
• CryptoQuant estimates that 15% to 20% of global mining capacity may now be operating in China.
• Domestic demand for mining rigs is improving. Canaan, a major provider of mining equipment, reports a rebound in local sales helped by higher bitcoin prices and uncertainty around U.S. tariffs that have dampened overseas demand.
• Beijing has not officially reversed its stance, but signals appear softer. Developments like Hong Kong’s stablecoin framework and discussions of yuan-backed stablecoins suggest a more flexible approach to digital assets.

Hashprice pressures

• Bitcoin hashprice—the revenue miners earn per unit of hashrate—fell to a record low of $34.2 per PH/s on Friday, according to Luxor.
• Hashprice is affected by four factors: network difficulty, bitcoin’s price, the block subsidy, and transaction fees. It tends to rise with higher prices and fees, and fall when difficulty increases.
• With bitcoin prices down more than 30% from the October peak, transaction fees subdued, and network hashrate just above one zettahash (about 10% below recent highs), miner revenues have tightened to new lows.
• The next difficulty adjustment, expected Wednesday, is projected to reduce the rate by a little over 2%, offering only modest relief for miners.