The New Chapter of China's Mining Landscape
Recently, the Bitcoin network encountered a rare "power crisis." By the end of 2025, global mining power plummeted by 8%-10% in just a few days, marking the most severe record in recent years. The main reason for this fluctuation was the forced shutdown of large-scale mines in Xinjiang, China, which resulted in about 400,000 mining machines suddenly losing power and going offline.
Although China comprehensively banned cryptocurrency mining as early as 2021, underground mining has never completely disappeared. With cheap electricity and idle data centers, China's mining share has quietly risen back to 14%-20% this year, ranking among the top in the world. Xinjiang was once a core area, and now a round of strict inspections has directly led to a global network shock. Miner groups are filled with astonishment, and everyone is lamenting the intensity of regulation.
However, the adaptability of Chinese miners is astonishing. They quickly turned their attention to the Qinghai Plateau. Many photovoltaic power stations there are underutilized due to reduced subsidies and difficulties connecting to the grid. Miners seized the opportunity to contract these solar projects and built their own energy storage systems to stabilize power fluctuations. Although electricity prices have risen from the previously ultra-low levels to a few dimes per kilowatt-hour, compared to nearly 1 yuan in Europe and America, it remains highly competitive. The enticing return on investment of around half a year encourages them to continue taking risks.
This "power outage storm" not only temporarily reduced the difficulty of Bitcoin mining and pressured miner incomes but also exposed the network's dependence on regional computing power. In the long run, as miners migrate to green energy, underground mining in China is likely to quietly revive again. This tug-of-war between regulation and survival is also pushing the mining industry to evolve towards a more environmentally friendly and flexible direction.
How will the Bitcoin hash rate landscape evolve in 2026? The miners' "photovoltaic breakout" may become a new legend.
