China Reclaims 14% of Global Bitcoin Mining Despite 2021 Ban

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Four years after Beijing banned cryptocurrency mining to protect financial stability and conserve energy, China’s Bitcoin mining industry is quietly resurging through individual and corporate operations exploiting cheap power and a data center expansion in energy-abundant provinces.

The country that once dominated global crypto mining—before its market share crashed to zero following the 2021 crackdown—has stealthily recovered to third place worldwide with 14% of mining activity as of late October, Hashrate Index data reveals.

This underground renaissance, validated by Chinese rig maker Canaan Inc’s rebounding domestic sales, may provide significant support for Bitcoin’s demand and valuation. Xinjiang-based miner Wang, who restarted operations last year, noted: “New mining projects are under construction. What I can say is that people mine where electricity is cheap.”