TLDR
- China now holds 14% of global Bitcoin mining despite its 2021 mining ban.
- Provinces like Xinjiang and Sichuan support underground mining with surplus energy and growing data center capacity.
- Domestic mining rig sales have increased due to higher Bitcoin prices and reduced overseas demand from U.S. tariffs.
- Bitcoin network hashrate reached 1043.32 EH/s, while hashprice dropped from $48 to $36.02 per PH/s/day in one month.
- Current mining difficulty remains high at 152.27T, and miners earn about 3.14 BTC per block with declining fee revenue.
China has returned as a major player in global Bitcoin mining, now holding an estimated 14% share as of October. This shift comes despite the 2021 national ban on crypto mining, with renewed activity driven by low electricity costs and growing rig demand. A Reuters report confirms that operations have picked up in provinces such as Xinjiang and Sichuan, where miners are taking advantage of surplus power and underutilized data centers.
China Underground Mining Grows in Energy-Rich Regions
Miners operating in regions like Xinjiang are using excess electricity for covert mining projects. Many previously inactive miners have resumed operations in areas with cheap and abundant energy. Industry sources confirm that data centers in these regions are rapidly expanding, supporting the return of underground mining setups.
Additionally, domestic sales of mining rigs have increased sharply. Equipment manufacturers have reported higher demand, mainly due to rising Bitcoin prices and slower international orders. U.S. tariff uncertainties have also contributed to this domestic sales growth, redirecting demand back into China. While the mining ban remains in place, the government’s stance appears to be less rigid. Developments like Hong Kong’s stablecoin framework and conversations around yuan-backed digital currencies have coincided with China’s growing mining activity.
Hashrate Hits 1043 EH/s as Hashprice Slides
Tracking the ongoing price trend following the 14% share, Bitcoin’s hashrate now reads at 1043.32 EH/s over the last seven days, indicating strong network processing power. Network difficulty stood at 152.27 trillion, showing mining conditions remain highly competitive. Over the past month, hashprice dropped from over $48 to $36.02 per PH/s/day as of November 24. This decline reflected increased difficulty and weak transaction fee contribution, recorded at 0.55% of block rewards.
The current spot hash price stands at $35.59, pressuring miner earnings despite Bitcoin’s value at $86,016. The previous difficulty adjustment was -2.37%, while the upcoming one is projected at -1.84%. These adjustments reflect a minor response to lower profitability. Average block time is 10 minutes 11 seconds, while miners produce about 3.14 BTC per block. Hashrate strength continues despite reduced revenue margins.
