China, once the epicenter of Bitcoin mining due to its affordable energy and access to advanced hardware manufacturers, has navigated a complex landscape since the government imposed a ban on mining activities in 2021. This crackdown was intensified in late September of the same year when the People’s Bank of China (PBOC) prohibited all cryptocurrency transactions, citing concerns over financial crime and risks to the stability of the financial system.
Despite these stringent efforts, the landscape of Bitcoin mining in China remains resilient. According to the Q4 2025 update from Luxor’s Global Hashrate Map, China currently contributes 14.05% of Bitcoin’s total compute power, amounting to approximately 145 exahashes per second (EH/s). This marks a slight increase from 13.8% reported in the previous quarter, illustrating a surprising endurance of the industry amidst state-driven restrictions.
Kaan Farahani, a research associate at Luxor, elaborated on the significance of the Global Hashrate Map, which provides insights into the geographical distribution of Bitcoin mining activities worldwide. The findings rank China as the third-largest contributor to Bitcoin mining, trailing only behind the United States and Russia. However, specific locations of the hashrate are not disclosed. Reports suggest that the Xinjiang region, known for its energy resources and relative isolation, could be a focal point for these covert mining operations.
This persistence of Bitcoin mining in China raises questions about the shadowy nature of the industry. Kent Halliburton, CEO of Bitcoin mining platform Sazmining, expressed that the ability to generate Bitcoin can be maintained as long as miners have access to electricity and the necessary hardware. He described this resilience as a “cypherpunk way” to remain in operation despite regulatory challenges.
Meanwhile, other regions where Bitcoin mining is illegal are also exhibiting growth. For instance, Iran, which has had its own bans on mining, is estimated to contribute around 8 EH/s, or 0.75% of the global hashrate. Experts suggest that countries with strict capital outflow controls are likely to react similarly against Bitcoin mining, yet mining can persist wherever power sources are accessible.
In a concerning development for global security, a report from Bitcoin solutions manufacturer Auradine reveals that over 95% of Bitcoin ASIC mining equipment is produced by Chinese companies such as Bitmain, MicroBT, and Canaan. This concentration of production raises significant cybersecurity concerns, particularly regarding the potential risks posed by the integration of foreign firmware in these machines connected to the U.S. electrical grid. Sanjay Gupta, chief strategy officer at Auradine, highlighted that foreign control over such critical infrastructure creates vulnerabilities that could lead to coordinated cyberattacks.
As geopolitical tensions intensify, with tariffs imposed by the U.S. on Chinese goods skyrocketing to potentially 155%, the repercussions on the Bitcoin mining industry could become severe. Gupta suggests that American Bitcoin miners need to develop technologies that enable flexible power consumption in response to grid demands to mitigate these risks.
In summary, while the Chinese government’s ban on Bitcoin mining aims to eliminate the industry within its borders, the ongoing operations indicate an underground resilience. The implications of this extended presence in the market are multifaceted, affecting security, regulation, and the overall dynamics of Bitcoin mining operations worldwide. The future landscape will likely continue to be influenced by these enduring undercurrents, as China operates on the fringes of the global mining network.
