China's Bitcoin Mining Resurgence: Factors Behind the Revival Post-Crackdown

In 2021, China implemented a nationwide ban on Bitcoin mining, citing concerns over financial risks, capital outflows, and excessive electricity consumption. Prior to the crackdown, China accounted for about 65% of the global Bitcoin computing power, according to data from the Cambridge Bitcoin Electricity Consumption Index.

The ban led to a significant drop in global Bitcoin hashrate as miners relocated to countries like the United States, Kazakhstan, and Russia. Despite the crackdown, global electricity consumption for Bitcoin mining has continued to rise, from 89 terawatt-hours in 2021 to approximately 121.13 terawatt-hours in 2023.

Recently, however, Bitcoin mining operations have seen a resurgence in China, particularly in regions like Xinjiang and Sichuan. According to Hashrate Index data from October 2025, China now represents about 14% of global Bitcoin mining, positioning it as the third-largest mining country following the United States and Kazakhstan.

Onchain research firm CryptoQuant estimates that the real share of Bitcoin mining in China could be between 15% and 20%. The revival can be attributed to several key factors, including the availability of inexpensive or underutilized power, particularly in energy-abundant provinces like Xinjiang and Sichuan, which have surplus electricity primarily from coal and hydropower.

Additionally, overdeveloped data center facilities in these regions, which have excess capacity, are seeking clients to utilize their resources. Rising Bitcoin prices since 2024 have further enhanced the profitability of mining operations, creating a favorable environment for miners.

The combination of these factors—cheap electricity, surplus computing infrastructure, and a bullish Bitcoin price environment—has contributed to the resurgence of cryptocurrency mining in China. The report highlights that local governments have constructed large data centers that can rent space and power to Bitcoin miners, further facilitating the revival of mining activity.

This resurgence is predominantly occurring in the power-rich regions of Xinjiang and Sichuan, known for their coal, wind, and hydropower resources. The implications of this mining revival are significant for global Bitcoin supply and market dynamics, potentially reshaping the landscape of cryptocurrency mining once more.