Once considered ousted from the global cryptocurrency landscape, China is making a remarkable and unexpected return to Bitcoin mining. Despite a comprehensive ban instituted in 2021, the nation has quietly but powerfully reclaimed its position as a major player in the energy-intensive industry, astonishing observers and reshaping the global hashrate distribution.
China's Stealthy Re-Emergence
Following a 2021 crackdown that forced miners to abandon the country, China has defied expectations by securing the third-highest global share of Bitcoin's hashrate. Commanding an impressive 145 EH/s, or 14% of the world's total, this resurgence places China just behind Russia and significantly narrows the gap with leading nations. This comeback signals a dramatic shift from its previous removal from global rankings, highlighting a complex interplay of factors driving its return.
Unpacking the Drivers of Recovery
Several key elements have fueled China's surprising mining revival. A significant contributor is the availability of cheap and abundant electricity, largely a result of local government over-investment in data centers, which created a glut of computational resources. This, coupled with Bitcoin's substantial rally in 2025—seeing prices soar from $74,000 to a record $126,000—provided strong incentives for miners. Furthermore, a discernible shift towards what appears to be a softer regulatory stance, alongside pro-crypto policies from the Trump administration, likely created a more permissive environment. The strong evidence of this resurgence is further supported by the significant increase in mining rig sales to Chinese buyers, with major manufacturers reporting China as a dominant market share contributor.
