Bitcoin mining is experiencing a significant revival in China even though the activity was formally banned in 2021, according to Reuters.
After almost disappearing from the global landscape, China has climbed back to the third position with an estimated 14% share of global mining by October, according to Hashrate Index.
This resurgence is driven by miners and companies quietly operating in regions with abundant and inexpensive electricity, particularly Xinjiang, where excess power and rapid data center construction create favorable conditions.
Miners told Reuters that surplus electricity in places such as Xinjiang and Sichuan are encouraging new underground projects and some former miners have returned. Data provider CryptoQuant estimates that 15 to 20% of global mining capacity now operates in China.
According to the article, Canaan, a leading mining rig producer, has seen a sharp rebound in domestic sales, helped by higher bitcoin prices and uncertainty around United States tariffs that slowed overseas demand.
Although the Chinese government has not publicly reversed its stance, its approach appears to be softening. Hong Kong’s stablecoin legislation and discussions about yuan-backed stablecoins suggest a more flexible outlook on digital assets.
Hashprice Hits an All Time Low
Bitcoin hashprice fell to a new all time low on Friday. This metric represents the revenue a miner can expect to earn from a given amount of hashrate. According to Luxor, hashprice dropped to $34.2 PH/s.
Hashprice is determined by four main inputs which are network difficulty, the price of bitcoin, the block subsidy and transaction fees.
Hashprice generally moves higher when bitcoin price or fee volume rises, it drops when mining difficulty increases.
As bitcoin is down more than 30% since the October peak, combined with subdued transaction fees and a network hashrate just above one zettahash (10% below recent highs), has pushed miner revenue to new lows. The next difficulty adjustment is expected on Wednesday and is projected to decline by a little more than 2%.
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