China’s Share of Bitcoin Miners Soars Amidst Decline in Revenue

China is seeing a resurgence in Bitcoin mining, with the country now third in mining activity according to Hashrate Index. The resurgence comes amid the AI boom and authorities becoming more permissive of crypto assets.

The country was once the leading Bitcoin miner globally before authorities banned crypto mining and trading in 2021. While the ban remains in place, enforcement has lagged in recent years.

China Accounts for 14% of Bitcoin Mining as Canaan Sees Revenue Increase

Several metrics show a resurgence in mining activity in China. Key among these is the share of global hashrate, with data from Hashrate Index showing that China now holds 14% as of the end of October.

This is in line with the estimates from CryptoQuant head of research, Julio Moreno, who believes 15-20% of Bitcoin mining is happening in China.

Many attribute this surge to the influx of cheap energy for mining in some regions of the country. They noted that areas such as Xinjiang, where energy is abundant, have become a hub of Bitcoin mining in recent years.

Meanwhile, the share of revenue from mining rig makers in China is also increasing. Canaan reported that over 30% of its global revenue came from China in 2024 as compared to just 2.8% in 2022.

This year could even see a higher percentage of revenue from the country. According to Reuters, citing an anonymous source, China’s share of Canaan’s sales increased by over 50% in the second quarter of 2025.

Interestingly, Canaan noted that its sale of mining machines to China complies with the law. While the country has banned crypto mining, the company claimed that the manufacturing, development, and sale of mining machines are permitted. Many now believe that China will eventually loosen the restrictions on digital asset mining.

Bitcoin Miners Face Revenue Challenges as BTC Price Plunges

Meanwhile, Bitcoin mining resurgence in China comes at a time when miners globally are facing a cash crunch. The recent crash in the BTC price, which saw the flagship asset drop 30% from its peak, has affected miners.

According to SwanDesk, Bitcoin hashprice fell to $34.49/PH/s on November 21, marking over 50% decline in a few weeks. This is the lowest hashprice ever for Bitcoin, much worse than the 2022 bear market or even when China banned crypto in 2021.

Although  Bitcoin’s recent gains mean the hashprice has now increased to $35.88, concerns about the health of miners remain. Many expect that miners could soon be forced to start selling their Bitcoin stash, and some might even shut down if the bearish performance continues.

Unsurprisingly, Bitcoin hashrate, which describes the network activity, is already showing early signs of a pullback. Hashrate has fallen to 1.044 zetahash per second (ZH/s) from the 1.124 ZH/s a few weeks ago, while mining difficulty is on track to drop by 2% in the coming days.