China has quietly re-emerged as a major player in the global Bitcoin mining industry, securing the third spot with a 14% market share by the end of October. This resurgence follows a complete ban on cryptocurrency activities in 2021. Despite the official restrictions, energy-rich provinces like Xinjiang have attracted miners due to low electricity costs and expanded data centers.
The revival is partly driven by economic interests, as evidenced by the significant demand for mining equipment from companies like Canaan, which reported over 50% of its sales in China during the second quarter. Additionally, the introduction of Hong Kong's stablecoin law and potential RMB-denominated stablecoins suggest a softening stance on digital assets. CryptoQuant estimates that 15%-20% of global Bitcoin mining capacity is now based in China, with industry experts anticipating potential policy relaxations as profitability increases.
China's Bitcoin Mining Resurgence: Now Third Globally with 14% Market Share
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