Bitcoin mining activity is quietly rebounding across China despite the government’s comprehensive 2021 ban, driven by miners leveraging inexpensive electricity and a data center construction wave in provinces with surplus energy capacity.
Once commanding the world’s crypto mining landscape before Beijing shut down the industry over financial stability and energy conservation concerns, China has surreptitiously regained third-place status with 14% global market share as of October, according to Hashrate Index.
The resurgence—corroborated through mining rig producer Canaan Inc’s fast-recovering domestic sales figures—may provide meaningful support for Bitcoin prices and demand. Xinjiang-based miner Wang, who launched operations late last year, explained the economics: “New mining projects are under construction. What I can say is that people mine where electricity is cheap.”
