China Regains Position as No. 3 Bitcoin Mining Hub With a 14% Market Share, Reuters Reports

China’s covert bitcoin mining industry is gaining momentum again, supported by cheap electricity, renewed miner interest and signs of a softer regulatory environment in key regions.

Once nearly wiped out after the government’s 2021 crackdown, China has returned as the third-largest contributor to global bitcoin mining, accounting for an estimated 14% of worldwide hashrate in October, data from Hashrate Index shows. The resurgence has been driven by companies quietly operating in provinces rich in low-cost power—most notably Xinjiang, where surplus electricity and a boom in data-center construction have encouraged underground activity.

Miners told Reuters that excess energy in Xinjiang and Sichuan is prompting new off-the-books operations, with some former miners now reentering the sector. CryptoQuant estimates that 15–20% of global mining output is currently coming from China.

The revival is also reflected in hardware demand. Mining rig manufacturer Canaan has experienced a strong rebound in domestic sales, helped by bitcoin’s price recovery and uncertainty around U.S. tariff policy that has slowed overseas orders.

Although Beijing has not officially changed its cryptocurrency rules, its posture toward digital assets appears to be evolving. Hong Kong’s work on stablecoin regulation and early discussions around yuan-linked stablecoins signal a more accommodative stance in the region.

Hashprice Slides to a New Low

Miner profitability continues to deteriorate despite rising activity. Bitcoin hashprice, which measures expected revenue per unit of hashrate, dropped to a fresh all-time low on Friday, sliding to $34.2 per PH/s, according to Luxor.

Hashprice is shaped by bitcoin’s price, network difficulty, block rewards, and transaction fees. It typically rises with higher BTC prices or fee spikes and falls when difficulty increases.

With bitcoin more than 30% below its October high, fee levels subdued, and network hashrate holding just above one zettahash—around 10% off recent peaks—miner revenues have slumped. The next difficulty adjustment, due Wednesday, is projected to fall slightly above 2%.