China Is Third-Largest Contributor To Global Bitcoin Mining: Why It Matters

China was once the undisputed center for Bitcoin ￰0￱ for its cheap power and access to leading hardware manufacturers, all of this positioned China as a leader in global Bitcoin mining. However, this changed when mining was banned by the Chinese government in ￰1￱ late September 2021, the People’s Bank of China (PBOC) further banned all cryptocurrency ￰2￱ PBOC cited the role of cryptocurrencies in facilitating financial crime as well as posing a growing risk to China’s financial system. Fast-forward to today—despite the government’s strong efforts to weed out all crypto miners, many have found ways to continue ￰3￱ to the Q4 2025 update of Luxor’s Global Hashrate Map , China currently accounts for 14.05% of Bitcoin’s total compute power, or roughly 145 exahashes per second (EH/s).

This is a modest rise from 13.8% in Q3.) September 8, 2025 Gupta added that the BTC mining hardware supply being highly concentrated poses a major risk of a potential 51% takeover of the bitcoin protocol in a hostile geopolitical ￰4￱ has become even more of a threat with the recent tariffs imposed on China by President Trump, which could rise to 155% in the coming weeks . “This could cause a dramatic impact on the value of BTC and ripple effect in financial markets,” Gupta ￰5￱ China A Threat To Bitcoin Miners? It’s clear that Bitcoin mining and manufacturing continue to take place in China despite ￰6￱ what does this mean for miners based in regions where BTC mining is considered legal?

According to Farahani, Luxor is unaware of challenges or threats based on China’s mining ￰7￱ the other hand, Gupta believes that Chinese firms supplying mining equipment will create complexities for other regions. “To combat this, we need to enable strong U. S.-based Bitcoin mining suppliers that can drive continuous innovation and performance for mining operations,” he ￰8￱ ongoing trade tensions between the US and China are having a significant and costly impact on the Bitcoin mining ￰9￱ to a new report from The Miner Mag, rising tariffs on mining equipment have exposed American companies to substantial financial liabilities.… — Dr Martin Hiesboeck (@MHiesboeck) August 21, 2025 Gupta added that moving forward, Bitcoin miners should have technology that allows energy demand response with the ability to rapidly increase or decrease power consumption based on the needs of a state or region’s electrical ￰10￱ the meantime, the architecture and legacy of mining in China will likely continue to loom over the global ￰11￱ crypto’s ever‑shifting world, China isn’t gone—but rather simply operating in the margins.