China Returns as Third Largest Bitcoin Mining Hub With a 14% Share: Reuters

Why It Matters

The revival boosts China’s influence over the bitcoin network’s security and could reshape global mining geography, while the plunging hashprice underscores tightening miner margins and may accelerate further consolidation or exits in the industry.

Summary

China has re‑emerged as the world’s third‑largest bitcoin mining hub, accounting for roughly 14% of global hashpower by October, according to the Hashrate Index. The resurgence is fueled by cheap, surplus electricity and expanding data‑center capacity in provinces such as Xinjiang and Sichuan, prompting underground operations and a rebound in domestic rig sales by Canaan. Despite the official 2021 ban, policy signals appear to be softening, while the broader mining sector faces pressure from a record‑low hashprice of $34.2 per PH/s driven by a 30% drop in bitcoin price, low transaction fees and high network difficulty.