Bitcoin Mining Quietly Returns to China Despite Active Ban

Four years after Beijing banned crypto mining and trading, Bitcoin mining is quietly making a comeback in the country. 

The report shows that individual miners and corporate players are returning. They are taking advantage of cheap electricity and underused computing resources in energy-rich provinces. 

Miners Find Opportunity in Abundant Power in China

After falling to zero in 2021, China’s Bitcoin mining share has climbed back to 14% as of late October, making it the third-largest mining hub again. This rise is attributed to the quiet return of miners in different regions of China. 

Private miners describe a practical reality. Unused power should not be wasted, and crypto mining is a quick way to turn extra energy into money. 

Growing profit opportunities and local conditions are pushing miners to restart operations despite national limits. This comes as officials are also searching for ways to use surplus electricity and empty data centers.

Furthermore, existing data centers provide another boost to mining activity in China. Some provinces invested heavily in infrastructure for cloud computing, artificial intelligence (AI), and digital services, but much of this capacity remains unused. 

Miners are now able to discreetly use the idle power and computing equipment to mine Bitcoin, turning previously wasted resources into profit. 

While mining activity is booming in China due to excess electricity, other countries like Kyrgyzstan are shutting down crypto mining farms due to energy shortage. 

Hardware Sales Reflect Renewed Mining Activity

Mining machine makers show clear signs of China’s return. Canaan, the world’s second-largest Bitcoin mining rig producer, earned a substantial portion of its global revenue from China last year. This marks a sharp increase from the small fraction it earned in 2022.

By the second quarter of 2025, China accounted for more than half of Canaan’s revenue, reflecting a growing market despite the official ban. Canaan attributed rising sales to stronger Bitcoin prices, U.S. tariff uncertainty, and a subtle shift in China’s approach to digital assets. 

China Loosens Grip as Bitcoin Mining Returns

Although mining remains officially banned, some regulatory trends suggest increasing flexibility. Hong Kong has recently introduced regulations for stablecoins. At the same time, China is exploring yuan-backed stablecoins to expand cross-border currency use. 

Enforcement varies by region and is influenced by local economic needs. Observers note that the revival of mining activity signals one of the most important shifts in the market in years. 

Estimates indicate that between 15 and 20% of global Bitcoin mining capacity now operates in China despite the prohibition. Analysts argue that completely eliminating mining is nearly impossible in areas with cheap electricity and ready infrastructure. 

Legal experts predict that government policies against mining are likely to loosen gradually because the activities cannot be entirely stopped.