China is once again surprising the crypto world. After the country virtually disappeared from the bitcoin mining map a few years ago, it is now emerging from the shadows. According to data from Reuters, China has quietly grown to become the number three in the global bitcoin mining ranking. Why are the Chinese getting more involved in bitcoin mining again?
China is back in the world of Bitcoin mining #
China is rapidly reclaiming its position in the mining sector, driven by cheap energy, new data centers, and a milder government stance. While profitability in the sector is at a historic low, China is actually benefiting from this turbulent market.
A few years ago, the Asian country quietly disappeared from the global bitcoin mining landscape, but now it’s back. Currently, China ranks third in bitcoin mining.
The country’s share of global bitcoin mining is now 14%. These figures come from Reuters and the Hashrate Index and date from October 2025. Both parties closely monitor bitcoin mining activities in the global market.
Reasons for the increase in mining activities in China #
According to data from CryptoQuant, between 15% and 20% of the global mining capacity now operates in China. Cheap energy in some provinces of China contributes to the growing number of mining activities in the country. Additionally, there is increasing demand from miners, and the Chinese government is less harsh on crypto and mining than a few years ago.
China’s return is driven by miners and companies operating quietly in regions where electricity is cheap and abundant, such as Xinjiang and Sichuan. In these ’technological hubs’, large data centers generate a lot of electricity. Underground projects use the excess electricity to mine bitcoin.
Notable signals from the market #
According to Reuters, Canaan, a major Chinese company that produces mining rigs, has shown a strong recovery in domestic sales. The higher bitcoin price and uncertainty around U.S. tariffs contributed to the growth. New tariffs reduced demand abroad, while domestic demand rose. As a result, machines for mining bitcoin are used more often. Reuters’ figures confirm this development.
China has not taken a new official stance on bitcoin mining, but there are signals that the government is less dismissive of developments in the crypto market. For example, the Chinese government is relatively flexible with regulations around stablecoins from Hong Kong and the resulting discussion about yuan-backed stablecoins.
Declining profitability #
The Bitcoin Hashprice Index shows how profitable mining is for bitcoin miners. Last Friday, the index fell back to a historic low. The value rises when the BTC price increases or when transaction volume increases. Miners then earn more per mined block. But if the mining difficulty goes up, which happens when more parties start mining, the index actually falls.
Currently, we are seeing a sharp drop in the bitcoin price and lower trading volumes. Moreover, the total hashrate of the network has fallen by about 10%. Earnings are also nothing to write home about. Miners’ revenues have fallen to a low of $34.2 per PH/s (PetaHash per second).
Lower mining revenues have major consequences. Cheap electricity becomes even more important, because otherwise miners simply cannot break even. With the exit of less profitable miners, the mining difficulty is expected to decrease. This makes mining somewhat easier and therefore potentially more profitable for the survivors.