What happened?
China used to be the world’s top Bitcoin mining hub thanks to cheap power and local hardware, but Beijing banned mining and crypto transactions in 2021. Despite that, many miners went underground or moved operations and kept running. Luxor’s Q4 2025 map now estimates China provides about 14% of Bitcoin’s hashrate, making it the third-largest contributor after the U.S. and Russia.
Who does this affect?
This affects miners everywhere — both legal operators competing with hidden Chinese rigs and those relying on Chinese-made machines. It also hits hardware makers (Bitmain, MicroBT, Canaan), utilities and grid operators worried about cybersecurity and sudden load changes. Regulators and investors are exposed too, since enforcement, trade policy and hidden supply chains can change costs and risk profiles quickly.
Why does this matter?
Having so much mining activity and almost all ASIC manufacturing tied to China creates supply-chain and security risks that can drive up costs and scare markets. Tariffs, the risk of coordinated disruption or even a 51% concentration concern could hurt miner profits and trigger big Bitcoin price moves. If countries push for domestic suppliers or energy‑responsive mining, capital will shift and that will create clear winners and losers across miners, manufacturers and investors.