China returns to 3rd place in Bitcoin mining…first resurgence since 2021 ban

An analysis has emerged that Bitcoin (BTC) mining activity in China is expanding again. China, whose global share fell to '0%' after the full ban in 2021, has recently recovered a 14% share and risen to third place globally after the United States and Kazakhstan.

On the 24th (local time), Reuters, citing data from the Hashrate Index, reported that "individual and corporate miners in China are restarting mining, centered on some power-surplus areas." In particular, surplus power in high-generation regions such as Xinjiang and Sichuan is known to be attracting mining demand.

A local miner, Wang (Wang), said, "There is a lot of power that cannot be transmitted outward, so mining demand is emerging based on cheap electricity rates."

The sales flow of mining-machine maker Canaan (Canaan) also supports this. The company disclosed that its share of China sales jumped from 2.8% last year to 30.3%. It was also reported that the share exceeded 50% in the second quarter of this year.

The outlet interpreted, "Amid recent increases in Bitcoin price volatility, the U.S.'s pro-crypto policies and debates about weakening confidence in the dollar have increased mining profitability, stimulating economics in China again."

However, the Chinese government has not officially revoked its ban on Bitcoin mining.

Meanwhile, industry sources said, "It is difficult to completely block a profitable industry," suggesting the possibility that the regulatory stance may be gradually eased.

Julio Moreno, head of research at CryptoQuant (CryptoQuant), said, "Mining is still banned, but 15~20% of the actual global hashrate is occurring in China," adding, "If policy direction eases even slightly, the market symbolism could grow."