China Reclaims 14% Global Bitcoin Hashrate Amid Continued Mining Ban

Bitcoin mining is making a comeback in China, reclaiming a 14% share of the global hashrate and ranking third worldwide as of late October, despite a ban still being officially in effect.

China's resurgence in Bitcoin mining leverages cheap electricity and a data center boom in energy-rich provinces.
The mining activity reached 145 exahashes per second, with the USA leading at 37.75% and Russia at 15.51%.
Xinjiang is a key hub due to its abundant electricity, with private miners resuming operations and new projects underway.
Canaan Inc. reported that 30.3% of its 2024 revenues came from China, up from 2.8% in 2022.
Bitcoin prices hit record highs in October, reaching $126,000 but later declined to approximately $86,500.

Policy Developments

Signs suggest Beijing may be softening its stance on digital assets, with Hong Kong's stablecoin bill taking effect and a roadmap for yuan-backed stablecoins under review.
The concentration of mining activities among three countries raises questions about Bitcoin's decentralization.

The economic incentives driving mining in Xinjiang seem persistent, although it remains unclear if Beijing will formalize tolerance or enforce another crackdown.