The mining of Bitcoin in China has seen an incredible comeback despite the countrywide ban that was enforced in 2021. After having seen its global bitcoin mining market share slump to zero as a result of the ban, China crept back to third place with a 14% share at the end of October, according to Hashrate Index, which tracks bitcoin mining activities..
Single miners such as the case of a miner known as Wang in Xinjiang, have taken up the mining again and new mining ventures are being developed due to cheap electricity and the booming local data-centre industry.
Wang, a private miner in Xinjiang, said he started mining late last year in the energy-abundant province.
“A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining,”
Wang said, asking to be identified by just his last name
“New mining projects are under construction. What I can say is that people mine where electricity is cheap.”
The performance of the Canaan Inc., which is the second-largest producer of bitcoin mining rigs in the world, also adds to the seen revival.
With the 2021 crackdown cutting Chinese share of the company infrastructure world income to just 2.8%, Canaan saw its sales of over 30 % in 2024, and over 50 % throughout the second quarter of 2025 in China.
The third-quarter 2025 revenue of the firm went up by 104% year-on-year to reach $150.5 million, which is an indication of strong demand amidst the upward bitcoin value and improvement in mining profitability.
Chief Financial Officer James Jin Cheng said
“U.S. clients began actively placing sizable and repeating orders during the quarter. North American customers contributed 31% of total revenue in Q3, signaling strong demand recovery in that market”.
Even though the Chinese government has not yet officially revoked the ban that was imposed in mid-2021 nor has it changed its widespread ban on cryptocurrency that was implemented in mid-2025, industry experts observe implicit policy moderation within specific jurisdictions.
This kind of flexibility allows underground mining processes to thrive in the background in areas where the economic motivation is a fortune.
The renewed mining action in China, by Patrick Gruhn, the CEO of Perpetuals.com, is a crucial market indicator, which might be providing the influence that bitcoin has to continue running as an international asset.
Further, strategic popularization of the digital yuan in China and regulating stablecoins in Hong Kong are additional indicators of changing crypto-politics in this territory.
In the future, resurgence of bitcoin mining in China can have a beneficial influence on stabilization of the demand, and assist the price of bitcoin during the turbulence of the world market.
The fourth quarter estimates given by Canaan Inc. amount to revenue estimates to the tune of $175-$205 million but what offers support to the industry is that the company is still investing in AI-driven mining technology in the moves to take the industry forward.
With continuous regulatory and regulatory vacuity, the mining activities in power-abundant Chinese provinces will probably continue or grow due to the low electricity prices and expansion in the economic sphere.
Canaan and bitcoin investors must thus consider these dynamic forces as part and parcel of a more complex and dynamic cryptocurrency ecosystem.
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