China's Bitcoin Mining Computing Power quietly reclaims the global third position, Bitmain and Canaan Creative adjust their operational strategies.

Despite the comprehensive ban in 2021 still being in place, China's Bitcoin Mining Computing Power has quietly recovered to 14% of the global market share, ranking third in the world with a computing power scale of 145 EH/s, only behind the United States at 37.8% and Russia at 15.5%. This recovery is mainly attributed to the historic high of Bitcoin rising to $126,000 in 2025, the surplus of cheap electricity supply from local governments, and the surge in Mining Rig sales. The global second-largest Mining Rig manufacturer, Canaan Creative, saw its revenue share in the Chinese market soar from 2.2% in 2022 to 30% in 2024, indicating that Chinese miners are adopting new strategies to cope with the regulatory environment.

Restructuring the Computing Power Map: The Secret Recovery Path of Chinese Mining

According to the latest data from Cambridge University's Alternative Finance Center, China's Bitcoin computing power share has steadily recovered to 14% of the global total after experiencing a dramatic drop from 2021 to 2023. This figure means that China currently contributes 145 EH/s of global computing power, equivalent to the processing capacity of about 1 million of the latest generation Mining Rigs. Although this is far from the peak share of 65% before the ban, this recovery trend has allowed China to surpass Kazakhstan and re-enter the top three in global Mining.

(Source: Hashrate Index)

From a geographic distribution perspective, the activity center of Chinese miners has undergone a significant shift. Areas rich in hydropower, such as Sichuan and Yunnan, still retain some computing power, but the resurgence is more evident in regions rich in thermal power resources, such as Xinjiang and Inner Mongolia. This change in distribution reflects miners' preference for stable electricity and the subtle shift in local governments' attitudes towards digital economy infrastructure. Especially in regions with greater fiscal pressure, local governments' tacit approval of “idle data centers” has provided miners with breathing space.

The sales data of Mining Rigs provides strong evidence for this recovery. The global second-largest Mining Rig manufacturer, Canaan Technology, reported in its 2024 financial statement that 30% of its global revenue comes from the Chinese market, an increase of more than 12 times compared to 2.2% in 2022. More notably, the company's sales in the second quarter of 2025 surged by 50% quarter-on-quarter, coinciding perfectly with the rise of Bitcoin prices from $74,000 in April to a historical high of $126,000 in October, indicating that the price recovery is a key catalyst for the resurgence of Mining activities.

From the perspective of the global competitive landscape, the United States still maintains an absolute lead with a 37.8% market share (389 EH/s), while Russia ranks second with 15.5%. If China's current recovery speed continues, it is very likely to surpass Russia and regain the global second position by early 2026. This change in landscape will not only affect the distribution of computing power but may also alter the geopolitical risk situation of the Bitcoin network.

Key Data on Global Bitcoin Mining Computing Power Distribution

United States: Market share 37.8%, Computing Power 389 EH/s, continuing to lead

Russia: Market share 15.5%, emerging mining center

China: Market share 14%, Computing Power 145 EH/s, strong recovery

Kazakhstan: Market share 8.7%, affected by energy policies

Canada: Market share 6.5%, clean energy advantage

Drivers of Recovery: The Triple Resonance of Price, Electricity, and Policy

The unprecedented rise in Bitcoin prices has provided a core economic incentive for Mining activities. From April to October 2025, Bitcoin surged from $74,000 to $126,000, setting a new historical high, which allowed even older Mining Rigs with lower energy efficiency to be profitable. According to F2Pool data, under the condition of an electricity price of $0.05 per kilowatt-hour, the daily earnings of new generation Mining Rigs like the Antminer S19 XP Hyd exceeded $20 during the price peak period, with the investment payback period shortened to within 12 months, attracting capital to flow back in.

The cheap and abundant electricity supply is the fundamental condition for Chinese miners to return. According to a report by Reuters, some cash-strapped local governments have over-invested in the data center sector, resulting in surplus electricity supply and idle computing resources, which provide an ideal operating environment for miners. Especially during the hydropower season in the southwest region, electricity prices can be as low as $0.03 per kilowatt-hour, significantly cheaper than the average $0.07 per kilowatt-hour in Texas, USA, creating arbitrage opportunities in the global computing power market.

The pro-crypto policy of the Trump administration indirectly boosted the resurgence of mining in China. The United States' friendly attitude towards cryptocurrencies has bolstered market confidence, while Chinese miners continue to participate in the global computing power competition through complex offshore structures. Many miners have established holding companies in Hong Kong or Singapore and deployed mining rigs in mainland China through leasing agreements, a model that both circumvents regulatory restrictions and maintains operational efficiency.

Technological advancements have also contributed to the revival of Mining. The energy efficiency of the new generation of Mining Rigs has significantly improved, with Bitmain's S21 achieving an energy efficiency of 16 J/TH, an increase of over 40% compared to mainstream models from three years ago. This technological progress has reduced the energy footprint of Mining, making it easier to integrate into local energy management systems. Especially when combined with intermittent energy sources such as wind and solar power, Mining can serve as a flexible power load balancing tool.

The Evolution of the Mining Rig Industry Chain: Adaptive Adjustments from Manufacturing to Sales

The role of Chinese Mining Rig manufacturers in the global market has undergone profound changes. Although Mining activities in China are restricted, manufacturers such as Bitmain and Canaan Technologies continue to dominate the global Mining Rig supply through international expansion. Canaan Technologies' sales surged by 50% in the second quarter of 2025, with over 70% of the increase coming from the Asia-Pacific region, indicating that the model of Chinese buyers purchasing Mining Rigs through overseas entities has become the new normal.

The evolution of sales channels is also worth noting. The traditional direct sales model is gradually being replaced by a complex cross-border supply chain, where Mining Rig manufacturers receive orders through subsidiaries in Hong Kong and Singapore, then ship the equipment to free ports or bonded zones, and the end-users arrange logistics to the actual operating locations themselves. Although this model increases transaction costs, it provides necessary legal insulation for Miners, allowing them to continue operating in regulatory gray areas.

The financing methods for mining rigs are also showing innovative trends. Due to traditional banks' cautious attitude towards the mining industry, equipment leasing and computing power tokenization have become emerging financing methods. Some miners choose to collaborate with investment institutions, with the latter holding ownership of the mining rigs, while miners only provide operational services and share in the profits. This light asset model reduces policy risks, allowing miners to respond more flexibly to regulatory changes.

From a technical perspective, Chinese mining rig manufacturers are accelerating the commercialization of advanced technologies such as liquid cooling and immersion cooling. These technologies not only enhance energy efficiency but also significantly reduce noise, allowing mining farms to be deployed closer to urban areas. Bitmain's liquid-cooled mining farm trial in Sichuan achieved an industry-leading PUE (Power Usage Effectiveness) value of 1.05, and this energy efficiency performance helps improve the public image of mining, creating the possibility for policy relaxation.

Geopolitical Dimension: New Balance in Global Computing Power Competition

The geopolitical significance of Bitcoin mining has become increasingly prominent in the post-ban period. The United States has successfully attracted a large amount of Chinese capital and technology through friendly policies in states like Texas and Wyoming, but the recovery of China's Computing Power indicates that the global distribution of computing power is trending towards multipolarity. This multipolarity has positive implications for the long-term security of the Bitcoin network, as the more decentralized the distribution of computing power, the greater the resilience of the network to geopolitical shocks.

The international competition of energy policies affects the flow of Computing Power. Russia has rapidly risen during the 2023-2024 period with its cheap natural gas electricity, but Western sanctions have restricted its Mining Rig imports and technological updates, hindering its growth momentum. The Middle East, especially the UAE and Saudi Arabia, is actively laying out the Mining industry, but has started late, and the infrastructure is still not complete. China's recovery is happening against the backdrop of this global energy transition and geopolitical reconstruction.

From a cybersecurity perspective, the moderate recovery of China's computing power share may be beneficial for the Bitcoin network. Bitcoin core developers have long been concerned about the potential risks posed by the excessive concentration of computing power in North America, including regulatory coordinated attacks and single point of failure issues. The return of China's computing power, along with the rise of emerging computing power centers in Central Asia, Northern Europe, and others, is constructing a more decentralized global computing power map.

The competition between China and the United States in the field of digital assets is also reflected in the mining industry. The United States attempts to incorporate mining into the formal economy through legislation and regulation, while China maintains its influence in the global computing power market through practical acquiescence. This competitive situation may lead to two different development models: the compliance path of the United States and the flexibility path of China. In the long run, which model is more competitive will affect the final shape of the global computing power landscape.

Profitability Challenges: Operating Strategies Under Hash Price Volatility

Despite the recovery in Computing Power, Chinese Miners still face severe profitability challenges. The Hashprice Index dropped from its 2025 peak of $49 to $34 by the end of the year, a decline of over 30%, severely squeezing the profit margins of Miners. This indicator measures the daily expected earnings per unit of Computing Power (1 TH/s), and its decrease is mainly due to the pullback in Bitcoin prices and intensified competition from the continuous launch of new Computing Power.

The changes in the power cost structure have forced miners to adjust their operational strategies. Traditionally reliant on seasonal hydropower, miners now prefer to sign long-term power purchase agreements with thermal power plants in exchange for more stable power supply and more favorable electricity prices. In some regions of Xinjiang, miners even invest directly in photovoltaic power stations, using a “self-generated and self-used” model to further reduce electricity costs. This vertical integration strategy is particularly important during periods of declining hash prices.

The competition landscape of mining pools also affects the earnings of individual miners. As computing power is重新聚集, Chinese mining pools such as Antpool and BTC.com have become active again, but competition with North American mining pools is fiercer. In order to attract computing power, major mining pools are competing to lower fees and launch additional services such as cross-pool switching and real-time monitoring. While this competition is beneficial for miners in the short term, it may impact the research and development investment and service quality of mining pools in the long run.

In the face of market fluctuations, risk management has become key to the survival of miners. Mature miners commonly adopt various hedging strategies, including computing power forward contracts, options trading, and stable mining models. Some miners even expand their business into high value-added fields such as AI computing, balancing the cyclical risks of Bitcoin mining through diversified income sources. This business transformation is particularly evident in resource-rich areas such as Sichuan and Guizhou.

Future Outlook: The Interwoven Impact of Policy Environment and Technological Evolution

The future development of Bitcoin mining in China depends on the dual factors of policy environment and technological evolution. From a policy perspective, although the possibility of a comprehensive lifting of restrictions is low, the local government's redefinition of “digital economy infrastructure” may create a more relaxed environment for mining. Especially under the carbon neutrality goals, mining's value as a flexible load that absorbs abandoned wind and solar energy is gaining more recognition, and this cognitive shift may drive policy adjustments.

The evolution of technology will profoundly impact the geographical distribution and operational models of Mining. The energy efficiency ratio of the next generation of Mining Rigs is expected to break through the 15 J/TH barrier, allowing Mining to remain profitable even in areas with higher electricity prices. Meanwhile, modular deployment and containerized mining farms have lowered the infrastructure investment threshold, enabling Miners to respond more quickly to policy changes and energy price fluctuations, a flexibility that is especially important for Chinese Miners.

The impact of global regulatory trends on China cannot be ignored. As major economies such as the United States and the European Union establish clear regulatory frameworks for crypto assets, China faces the challenge of balancing its technological influence with financial risk prevention. Completely rejecting crypto assets may place China at a disadvantage in the competition for Web3 technology, and this strategic consideration may prompt a subtle shift in regulatory attitudes in the coming years.

From the perspective of energy structure transformation, the combination of Bitcoin Mining and renewable energy may become a policy breakthrough. China's huge investments in wind power and photovoltaics have generated a large amount of intermittent electricity, and Mining, as an interruptible load, can effectively enhance the utilization of these energy sources. Pilot projects in Inner Mongolia, Ningxia, and other regions are exploring the “new energy + Computing Power” business model, which, if proven economically viable, could win broader social recognition for Mining.

As China's Bitcoin Computing Power quietly recovers under the shadow of the ban, we witness not only the resilience of Miners but also the complex reality of global digital economy governance. At the intersection of policy and market, regulation and innovation, energy and computing, Bitcoin Mining has become a touchstone for testing the balancing capabilities of all parties. The return of Chinese Miners not only changes the global Computing Power landscape but also raises a profound question: In the digital age, will the flow of capital, technology, and energy ultimately transcend traditional regulatory boundaries? The answer to this question may determine the pattern and direction of the global digital economy for the next decade.