China Emerges as the World’s Third-Largest Bitcoin Mining Powerhouse — Despite Nationwide Ban
In a surprising twist of events, China has reasserted its presence in the global Bitcoin mining arena, now ranking as the third-largest contributor to the world’s total hashrate. According to the latest data from Q4 2025, the country accounts for approximately 14.05% of Bitcoin’s global computational power—equivalent to around 145 exahashes per second (EH/s). This marks a slight increase from the previous quarter’s 13.8%, signaling a steady resurgence of mining activity within the country’s borders.
This development is especially striking given China’s 2021 blanket ban on cryptocurrency mining and transactions. At the time, government authorities, led by the People’s Bank of China (PBOC), justified the crackdown as a necessary measure to combat financial crime, prevent capital flight, and protect the stability of the national economy from the volatility of decentralized digital assets.
However, despite stringent regulations and public declarations of a zero-tolerance policy, underground mining operations have endured—and even flourished in the shadows. Experts suggest that miners never fully ceased operations but instead shifted to more covert strategies. Remote areas like Xinjiang have become hotspots for these clandestine activities due to their abundance of cheap electricity and geographic isolation, which help operators avoid detection.
Industry insiders point to Xinjiang’s long-standing reputation as a mining hub. Even before the ban, its infrastructure was tailored to support large-scale crypto mining. Now, it appears that miners have quietly returned, leveraging the region’s resources while maintaining a low profile. Supply chain sources for ASIC mining equipment have reportedly observed a resurgence in orders destined for this region, further supporting claims of a mining revival.
The new data from Luxor’s Global Hashrate Map underscores the resilience of China’s mining sector. Although the data doesn’t offer precise geolocation, analysts agree that a substantial portion of this activity originates from previously active mining zones that have resumed operations under the radar.
Meanwhile, Bitcoin itself continues to demonstrate strength. At the time of reporting, the cryptocurrency was trading around $111,007.61, reflecting a modest 1.16% gain over the previous 24 hours. Coupled with a global network hashrate of 1,137.06 EH/s, these figures point to growing miner confidence and increasing network security.
A rising hashrate is often interpreted as a bullish signal, indicating that miners—who bear significant operational costs—expect continued profitability and price appreciation. This sentiment is shared even by those operating under restrictive regimes, suggesting a broader belief in Bitcoin’s long-term viability.
China’s reemergence on the Bitcoin mining map also raises questions about the effectiveness of regulatory enforcement. Despite repeated efforts to dismantle the sector, the persistence of underground mining suggests that local enforcement may lack the reach or resources to completely eradicate these operations—especially in remote provinces where oversight is limited and local authorities may be more lenient or economically incentivized to turn a blind eye.
Moreover, the rise of decentralized mining pools and the use of VPNs and proxy servers has made it increasingly difficult for regulators to trace and shut down individual mining operations. Miners are deploying more sophisticated methods to mask their IP addresses and distribute workloads across international servers, effectively bypassing national controls.
This development also speaks to the broader geopolitical dynamics of Bitcoin mining. With the United States and Russia occupying the top two spots, China’s continued involvement—albeit unofficial—suggests that global competition for control over Bitcoin’s infrastructure remains fierce. The decentralized nature of the network makes it difficult for any one government to exert full control, a feature that both empowers participants and complicates regulatory oversight.
Looking ahead, it remains unclear how Chinese authorities will react to the resurgence of mining within their borders. While the central government has maintained a hardline stance, local governments may face pressure to accommodate miners due to the economic benefits they bring—such as employment, energy consumption during off-peak hours, and local investment.
There is also the question of sustainability. Bitcoin mining is energy-intensive, and China’s energy grid, while vast, is still under pressure to meet decarbonization targets. Any large-scale resurgence of crypto mining could clash with the country’s climate commitments, potentially triggering further regulatory action.
At the same time, the global mining landscape is evolving rapidly. Advances in mining efficiency, the push toward renewable energy, and the decentralization of mining infrastructure are reshaping how and where mining takes place. It’s possible that China’s miners are not just surviving but adapting—integrating renewable sources or co-locating with industrial facilities to offset environmental concerns and remain competitive.
In summary, China’s position as the third-largest contributor to the global Bitcoin hashrate reveals a complex reality: despite harsh regulations, its mining sector is far from extinct. Instead, it has adapted, gone underground, and continues to play a pivotal role in securing the Bitcoin network. As the crypto landscape continues to evolve, so too will the strategies of miners operating within—and beyond—the reach of government regulation.