China’s share of global Bitcoin mining rises to 14%

global Bitcoin mining. For a while, it looked like China’s era as a Bitcoin mining superpower was over. In 2021, Beijing imposed a sweeping crypto mining ban, forcing miners to shut down or move overseas almost overnight. Hashrate estimates briefly showed China’s participation plunging close to zero, and many analysts assumed the chapter of large-scale Bitcoin mining in China had closed for good.

Fast-forward to late 2025, and the story has flipped again. New data now shows that China’s share of global Bitcoin mining rises to 14%, making the country the third-largest contributor to the Bitcoin network’s computing power, behind the United States and Russia. This resurgence is happening despite the official ban still being on the books, highlighting a complex mix of underground operations, regional economic incentives, cheap electricity, and China’s ongoing dominance in Bitcoin mining hardware manufacturing.

This article explores why China’s share of global Bitcoin mining has climbed back to around 14%, what it means for the global crypto ecosystem, and how it could shape the future of Bitcoin hashrate distribution, regulation, and energy use. We will look at the historical context, the drivers of this rebound, the regulatory grey zone, and the broader implications for miners, investors, and policymakers.

From Dominance to Underground: How China Reached 14% Again

From global leader to nationwide mining ban

For most of Bitcoin’s history, China was the undisputed heavyweight of mining. At various points before 2021, estimates suggested that Chinese miners controlled well over half of the global Bitcoin hashrate, thanks to a combination of cheap electricity, abundant hardware, and large-scale industrial farms clustered in regions like Xinjiang and Sichuan. That changed dramatically in 2021 when Chinese authorities ordered a comprehensive shutdown of Bitcoin mining and trading, citing concerns about financial stability, energy consumption, and capital flight. Mining farms were raided, equipment was seized or sold off, and many operators rushed to relocate their rigs to North America, Central Asia, and other friendlier jurisdictions. For a time, it appeared that China had completely exited the visible Bitcoin mining map. Public trackers showed its share dropping to nearly zero, while the United States, Kazakhstan, and Russia emerged as new mining hubs.

The rise of underground and offshore Chinese miners

However, the story did not end with the ban. Many miners went underground, operating in a legal grey area or shifting part of their operations offshore while keeping logistical and financial ties to China. Some used VPNs, proxy pools, and hosting arrangements abroad to obscure the true location of their hashpower. Meanwhile, Chinese companies remained at the heart of the ASIC mining hardware supply chain. Firms like Bitmain, MicroBT, and Canaan continued to design and manufacture the vast majority of the world’s Bitcoin mining machines, even as some moved headquarters or production facilities abroad for regulatory and trade reasons.  This persistent industrial base meant that China never truly left the mining business; it simply shifted from a highly visible behemoth to a more fragmented and less transparent actor.

Quiet comeback: China’s share of global Bitcoin mining rises to 14%

Recent data from hashrate tracking initiatives and industry analyses now converge on a striking conclusion: China’s share of global Bitcoin mining rises to roughly 14% of the total network hashrate in late 2025, up from around 13% the previous quarter.  This puts China firmly in third place globally and shows that the country’s contribution to Bitcoin’s security and block production remains significant. In other words, China’s Bitcoin mining isn’t dead; it has adapted. The operations may be more scattered, less public, and officially discouraged, but the economic incentives driving miners are powerful enough to overcome regulatory pressure.

What Does a 14% Share of Global Bitcoin Mining Really Mean?

Comparing China with the United States and Russia

On a global scale, the United States still leads Bitcoin mining with close to 38% of total hashrate, while Russia sits in second place with around 16%. China’s 14% share now completes this top three. Although China is no longer the overwhelming majority player it once was, a 14% share is far from trivial. It means that roughly one in seven hashes securing the Bitcoin network is estimated to originate from within Chinese borders or from Chinese-linked operations. For miners and investors, this level of concentration affects perceptions of network decentralisation, regulatory risk, and geopolitical exposure. The fact that such a substantial share comes from a country where mining is officially banned adds another layer of complexity.

Impact on Bitcoin network security and decentralisation

However, when China’s share of global Bitcoin mining rises to 14%, analysts pay close attention to how this power is structured. If activity is spread across many independent miners and pools, the concentration risk is lower. If, on the other hand, a few large entities control most of the Chinese hashrate, the potential for coordinated action increases. The reality is nuanced. While there are several mining pools and hosting providers, China also exerts influence through hardware production and manufacturing, which can shape the long-term direction of mining technology.

Hardware dominance: an invisible layer of influence

Even where the hashpower physically resides in the US or Europe, the rigs themselves are often built by Chinese firms. Reports suggest that more than 90% of global Bitcoin mining rigs still come from Chinese manufacturers, although some are now setting up overseas production to navigate tariffs and political scrutiny.  This means China wields not only a direct share of hashrate but also an indirect influence over the global mining infrastructure. In combination with a 14% domestic or China-linked mining share, this hardware dominance keeps the country deeply embedded in the Bitcoin ecosystem.

Why China’s Bitcoin Mining Share Is Rising Again

Cheap energy and flexible load demand

The key driver behind any mining resurgence is simple: profitable electricity. Regions like Xinjiang and Inner Mongolia offer access to relatively cheap coal-based power, while Sichuan and Yunnan provide abundant seasonal hydropower. Underground Chinese miners take advantage of these resources, often negotiating special deals or using off-grid and surplus energy that might otherwise go to waste.  Because Bitcoin mining is a flexible load that can be dialed up or down quickly, it can plug into seasonal or stranded energy in ways traditional industries cannot. This flexibility makes it attractive in regions with fluctuating demand or over-capacity in the grid.

Idle data centres and industrial parks

China has invested heavily in data centres, industrial parks, and digital infrastructure, some of which may be underutilised or seeking additional revenue streams. In such environments, covert or semi-official Bitcoin mining becomes an appealing way to monetise otherwise idle capacity. Reports and industry anecdotes describe operations that masquerade as AI workloads, cloud computing, or generic data-processing facilities, while in reality dedicating a portion of their energy draw to hashing for Bitcoin. This blending of uses makes enforcement harder and provides cover for mining operations.

Rising Bitcoin price and miner profitability

Another crucial factor behind the rebound is the Bitcoin price cycle. When Bitcoin’s price climbs, the incentive to switch on rigs and take risks increases dramatically. Even in the face of regulatory uncertainty, high margins can justify the legal and operational complexity of mining in a banned environment. As Bitcoin continues to attract institutional interest and is increasingly seen as a form of digital gold, miners across the world – including in China – are eager to capture block rewards and transaction fees, especially after recent halvings that make efficient operations even more valuable.

Regulatory Grey Zone: Ban on Paper, Mining in Practice

A strict national stance that is hard to enforce

Officially, China still bans Bitcoin mining and most crypto trading. The legal risk is real: operations can be shut down, assets seized, and individuals punished. This keeps many miners cautious and pushes them to operate discreetly. However, enforcing a total ban across a huge country with diverse local conditions is extremely challenging. Bitcoin mining is not easily visible to the public, and sophisticated operators can distribute their hardware, spoof locations, or blend into existing industrial infrastructure.

Local governments and economic incentives

At the local level, authorities often face different pressures. Some regions struggle with overcapacity in power generation or seek new ways to boost local GDP, utilise stranded energy, and create jobs. In such places, there can be a tacit tolerance for digital infrastructure projects that quietly include mining, as long as they do not attract national attention. This tension between national policy and local economic incentives helps explain how China’s share of global Bitcoin mining rises to 14% while the activity remains formally banned.

How underground miners manage risk

To manage legal and operational risks, many Chinese miners adopt strategies such as smaller, distributed facilities instead of massive single-site farms, using proxy pools or foreign hosting contracts to hide the origin of hashrate, and frequently moving hardware or changing business registrations. This makes the mining landscape more fragmented and harder to measure precisely, but the aggregated result is visible in global hashrate maps and energy studies, which now consistently show China’s contribution in the mid-teens percentage range.

Environmental and Energy Impacts of China’s Mining Return

Fossil fuels, hydropower, and stranded energy

Bitcoin mining worldwide is estimated to consume more than 100 TWh of electricity annually, representing a small but non-trivial share of global power use.  When China’s share of global Bitcoin mining rises to 14%, a portion of this energy footprint is tied to Chinese grids, which heavily rely on coal but also include significant hydropower.

In wet seasons, miners may migrate or contract into hydropower-rich regions, using renewable energy that might otherwise be curtailed. In dry seasons or coal-heavy areas, the carbon intensity can be much higher. This seasonal and regional variation makes it difficult to draw simple conclusions, but it is clear that Chinese mining influences the climate debate around Bitcoin.

E-waste and hardware turnover

Because mining hardware has a relatively short economic life – often just a few years before newer, more efficient ASICs emerge – the expansion of mining in any country also contributes to electronic waste. With China both producing and using a large share of this hardware, it has to confront e-waste management and recycling challenges. Efforts to improve ASIC efficiency, extend hardware lifespans, and reuse older rigs in lower-cost energy environments can help, but they do not eliminate the environmental questions surrounding large-scale mining.

Could smarter policy turn mining into a grid asset?

Some analysts argue that if China were to move from a strict ban to regulated, transparent mining, it could actually harness Bitcoin mining as a grid management tool. Flexible loads like mining can help absorb excess renewable generation, stabilise grids, and provide revenue that supports new infrastructure investments.

What China’s Mining Share Means for Global Crypto Markets

Hashrate distribution and geopolitical risk

Investors and industry observers track where mining is happening because hashrate distribution has geopolitical implications. When a large share is concentrated in a single country, there is always a concern that policy changes, energy crises, or political conflicts could disrupt the network. With the United States, Russia, and China now forming a top three mining bloc, the network is diversified but still exposed to major powers with complex relationships and competing strategic interests. China’s 14% share adds to this mix, reminding markets that regulatory risk is global, not local.

Effects on mining difficulty, fees, and profitability

As China’s share of global Bitcoin mining rises to 14%, the total network hashrate increases, which leads to higher mining difficulty over time. That means miners everywhere must continually upgrade hardware or access cheaper energy to remain profitable. For ordinary Bitcoin users and investors, this dynamic helps maintain the security of the network but can also influence transaction fees, especially during periods of high demand, as miners prioritise higher-fee transactions.

Long-term confidence in Bitcoin

Paradoxically, the fact that Bitcoin mining has survived and even thrived despite bans, regulatory crackdowns, and major geographic shifts – including China’s exit and partial return – tends to reinforce the idea that Bitcoin is resilient and anti-fragile. For long-term holders, the key question is whether this renewed Chinese presence improves or weakens the network’s robustness. So far, with China at around 14% instead of its former majority share, many argue that the situation is healthier than it was during the era of overwhelming Chinese dominance.

The Road Ahead: Will China Eventually Loosen the Ban?

Signals from Hong Kong and stablecoin experiments

There are hints that Chinese policymakers are re-evaluating their stance on digital assets, especially where they intersect with fintech innovation and the digital yuan. Hong Kong has introduced regulatory frameworks for crypto trading and fiat-backed stablecoins, signalling a more open approach in a region closely connected to mainland China. At the same time, there have been discussions about yuan-denominated stablecoins that could support cross-border trade and strengthen the currency’s global role. These experiments do not directly legalise Bitcoin mining on the mainland, but they show that policy is evolving rather than frozen.

Possible future regulatory scenarios

One possibility is continued strict enforcement, with periodic crackdowns and a largely underground mining sector that nevertheless preserves a mid-teens share of global hashrate. Another scenario is selective legalisation under heavy regulation, perhaps allowing state-aligned or tightly supervised mining operations that can be used as tools of industrial and energy policy. A more radical option, though less likely in the short term, would be a broad re-opening of the sector, acknowledging mining as a legitimate part of China’s digital and energy strategy. In every case, China’s combination of cheap energy, technical expertise, and hardware manufacturing means that its decisions will continue to shape the global Bitcoin landscape.

How miners and investors can prepare

For miners outside China, the key response is to focus on operational efficiency, regulatory compliance, and diversified energy partnerships. As long as China’s share of global Bitcoin mining rises to around 14% and potentially beyond, competition will remain intense. For investors, it is wise to monitor hashrate maps, regulatory news, and hardware market trends. These factors influence not only miner profitability but also the broader narrative around Bitcoin’s decentralisation, security, and environmental impact.

Conclusion

China’s journey in Bitcoin mining has been dramatic: from overwhelming dominance to apparent disappearance, and now to a quiet but significant comeback. The latest data shows that China’s share of global Bitcoin mining rises to about 14%, making it the world’s third-largest contributor to Bitcoin’s computational power despite a continuing official ban.  This renewed presence reflects powerful economic incentives, cheap and flexible energy resources, persistent hardware dominance, and a regulatory grey zone where national policy, local interests, and global markets collide. It raises important questions about decentralisation, environmental impact, and the role of major powers in securing a supposedly borderless digital currency.

FAQs

Q. Why did China ban Bitcoin mining in the first place?

China banned Bitcoin mining and most crypto trading in 2021, citing concerns about financial stability, capital flight, and the environmental impact of energy-intensive mining operations. Despite the ban, economic incentives and existing infrastructure have helped mining persist in a more hidden and fragmented form.

Q. How is China’s current 14% share of global Bitcoin mining calculated?

The estimate that China’s share of global Bitcoin mining rises to around 14% comes from analyses of global hashrate distribution, mining pool data, and geolocation studies that track where mining activity is likely occurring. Researchers use a combination of IP addresses, pool reporting, and energy consumption patterns to infer the origin of hashpower. These methods are not perfect, especially when miners try to hide their locations, but independent sources have converged on figures in the mid-teens percentage range for China.

Q. Is Bitcoin mining still illegal in China?

Yes, Bitcoin mining remains officially banned in mainland China. However, enforcement is uneven across regions, and some operations continue underground or under cover of other digital infrastructure activities. This mismatch between policy and practice is what allows China to maintain a notable share of the global Bitcoin hashrate.

Q. Does China’s 14% mining share threaten Bitcoin’s decentralisation?

On its own, a 14% share does not threaten Bitcoin’s decentralisation or security, since no single country or entity comes close to controlling a majority of the network’s hashrate. In fact, the shift from former overwhelming Chinese dominance to a more balanced distribution among the United States, Russia, China, and other countries has arguably improved decentralisation. However, analysts still monitor concentration risks, especially where large pools or hardware manufacturers could coordinate behaviour. Overall, Bitcoin remains robust, but geopolitical dynamics are an important part of the picture.

Q. What does China’s mining resurgence mean for the future of Bitcoin?

China’s renewed role in mining shows that Bitcoin is highly resilient to regulatory shocks and capable of adapting to shifting political landscapes. As China’s share of global Bitcoin mining rises to 14%, it reinforces the idea that economic incentives for securing the network are strong enough to persist even under hostile policies. For the future, this suggests that Bitcoin will likely remain a global, multi-polar system where no single jurisdiction fully controls it, but where major powers like China continue to exert significant influence through energy, hardware, and policy decisions.