China’s Bitcoin Mining Resurgence: Now World’s 3rd Largest Hashrate Contributor

China's Bitcoin mining industry stages dramatic comeback despite government crackdown

UNDERGROUND OPERATIONS THRIVE

Mining farms quietly relocated to remote regions, leveraging China's cheap hydroelectric power and sophisticated hardware manufacturing capabilities. The hash rate recovery proves decentralized networks can't be killed by regulation alone.

GEOGRAPHICAL SHIFT

Operations migrated from previous hubs to areas with abundant renewable energy sources. Miners adapted faster than traditional finance predicted—showing more resilience than your average hedge fund portfolio.

GLOBAL RANKING SURPRISE

China now claims the third-largest Bitcoin mining contribution worldwide, behind only the US and Kazakhstan. The numbers don't lie, even when governments try to hide them.

Who needs regulatory approval when you've got cheap electricity and ASICs? Another reminder that markets find ways around bureaucracy—usually faster than regulators can create it.

Hardware And Supply Chains

Reports have disclosed that much of the world’s mining rigs are built by Chinese firms. Bitmain, MicroBT and Canaan are still named as the main manufacturers. Because miners around the globe use that gear, the country’s grip on the supply chain remains strong.

Equipment origin, spare parts and technical know-how often trace back to China, and that is one reason why Chinese influence stays visible even when machines run overseas.

Moves After The 2021 Ban Changed Where Rigs Run

In 2021, China ordered a wide crackdown on crypto mining and exchanges. Many large operations left for places like Kazakhstan and the US.

Some groups moved quickly; others split their fleets across borders. Reports say that certain operations continued in hidden forms within China or were run by owners who used overseas subsidiaries. That mix of visible relocation and obscured activity makes it harder to pin down exact shares.

Based on reports, between 55% and 65% of global mining capacity can be linked back to Chinese roots when hardware origin and ownership are counted together.

Early data from 2022 had placed China near 21% in some measures, showing how estimates shift with method and timing. Hashrate snapshots depend on factors such as IP allocation, pool membership and reported ownership.

As a result, different groups produce different country shares, and the numbers should be seen as snapshots rather than fixed totals.

Hydropower in Sichuan and coal in northern regions once helped make Chinese mining cheap. Those energy factors shaped the old geography of mining inside China.

Now that many rigs moved, energy mixes have changed and emissions footprints vary by host country.

Featured image from Pixabay, chart from TradingView