Chinese crypto mining exodus: Where did Bitcoin miners relocate after the 2021 ban?

When China cracked down on Bitcoin mining in 2021, the entire industry shook. Overnight, thousands of mining rigs-some worth millions-had to pack up and move. This wasn’t just a policy change. It was a forced evacuation of the world’s largest Bitcoin mining hub. By mid-2021, China went from controlling 75.5% of global Bitcoin mining power to under 50%. That’s the biggest infrastructure shift in crypto history. So where did all those miners go?

Why did China ban Bitcoin mining?

It wasn’t about Bitcoin itself. It was about power. China’s government had been trying to cut energy waste and hit carbon neutrality goals by 2060. Bitcoin mining, especially in coal-heavy provinces like Inner Mongolia, was guzzling electricity. One mining farm in Inner Mongolia was using as much power as a small city. When local officials started shutting down operations in early 2021, it was a warning. By June, the central government made it official: no more mining. Banks were ordered to cut off services. Miners got 30 days to shut down or face fines, seizures, or worse.

The move stunned the world. China had been the undisputed king of mining for years. But miners didn’t just disappear. They packed up their ASIC machines-those boxy, humming rigs that solve Bitcoin’s math puzzles-and started moving. They didn’t need factories or offices. Just power, internet, and a place to plug in.

Kazakhstan: The unexpected winner

Kazakhstan didn’t even make the top 10 in mining power before 2021. By April 2021, it jumped to 8.2% of global hashrate. That’s a six-fold increase in less than a year. Why? Because it had what miners needed: cheap electricity, mostly from coal, and a government that didn’t ask too many questions.

Miners flooded into Kazakhstan’s industrial zones near Almaty and Nur-Sultan. Entire mining farms arrived in shipping containers. Some operators even set up camp in old Soviet-era power plants. The country’s grid, already overloaded from industrial use, got a massive new demand. Electricity prices didn’t spike because Kazakhstan had surplus coal and gas. It was perfect timing.

By October 2021, Kazakhstan briefly overtook China as the world’s second-largest mining hub-right after the U.S. But the boom didn’t last. By 2023, the government started cracking down. They raised electricity rates for miners, cut off power during winter shortages, and even blocked crypto mining hardware imports. Still, Kazakhstan remains a major player. It’s not the king anymore, but it’s still one of the top five.

Texas: The U.S. mining capital

While Kazakhstan was busy with coal, Texas went all-in on renewables. The state’s deregulated power market let miners negotiate rates directly with energy providers. Some struck deals to buy surplus wind and solar power at night-when demand drops and prices plunge. That’s how some Texas miners cut their electricity bills to less than $0.02 per kWh.

Texas didn’t just attract miners. It attracted investors. Companies like Riot Platforms and Marathon Digital built massive campuses in places like Abilene and Fort Worth. These aren’t backyard operations. They’re data centers the size of football fields, each with thousands of ASICs running 24/7.

By 2025, Texas alone accounted for nearly half of all Bitcoin mining in the U.S. That’s about 2.6 gigawatts of power-enough to run 2 million homes. And here’s the twist: miners actually helped stabilize the grid. When wind speeds dropped and power dipped, mining farms could pause operations in seconds. That gave grid operators breathing room during blackouts. Texas didn’t just welcome miners. It learned to work with them.

Other key destinations

Not everyone went to Kazakhstan or Texas. Miners scattered across the globe, looking for the best mix of cheap power and low risk.

• United States (other states): Georgia, Washington, and North Carolina saw smaller but steady growth. These states offered tax incentives and access to hydropower.
• Russia: Mining surged in Siberia, where cheap natural gas and cold weather helped cool rigs. But sanctions and internet censorship made it harder to connect to global networks.
• Iran: The government even subsidized mining to earn foreign crypto. With low electricity costs and state support, Iran briefly hit 4.6% of global hashrate.
• Canada: Quebec and Ontario attracted miners with clean hydroelectric power. But high taxes and strict regulations slowed growth.
• Paraguay: A quiet contender. Its massive Itaipu Dam produces more electricity than the country uses. Miners started showing up to buy the surplus. One farm there runs entirely on renewable hydro.

What happened to the old Chinese mining farms?

Most of them are gone. Some were auctioned off by the government. Others were sold for scrap. A few lucky operators managed to move their rigs before the deadline. But many lost everything. The machines themselves-ASICs-are expensive but not indestructible. Moving them across borders meant risk: customs delays, damage, or outright seizure.

The ones that made it? They’re still running. But now, they’re spread out. No single country controls more than 15% of the network. That’s a win for Bitcoin’s decentralization. Before 2021, if China had cut power for a week, the whole network could’ve stalled. Now? Even if Texas shuts down or Kazakhstan goes dark, the network keeps going.

Did the exodus change Bitcoin?

Yes. And not just in location.

The migration proved Bitcoin mining is not tied to any country. It’s a global, mobile industry. Miners don’t care about borders-they care about price per kilowatt. That’s why the network became more resilient. It also made mining more competitive. In China, miners could afford to run old, inefficient machines because electricity was subsidized. Now, only the most efficient operations survive. That’s pushing innovation. Newer ASICs use 30% less power than 2020 models.

It also changed how governments see crypto. Texas didn’t ban mining. It embraced it. Canada and Germany started studying how to use mining to absorb renewable energy surpluses. Even the IMF wrote a report in 2024 calling the exodus a "natural market correction" that improved Bitcoin’s infrastructure.

What’s next?

The mining landscape keeps shifting. Kazakhstan’s restrictions are tightening. Texas is seeing more regulation as power demand grows. New players are emerging: Saudi Arabia is building mining hubs near solar farms. The UAE is offering tax-free zones for crypto operators. Even Ukraine, despite the war, has seen a rise in mining using nuclear and wind power.

One thing’s clear: Bitcoin mining isn’t going back to China. The government has made it clear: no mining. Ever. But the miners? They’re still mining. Just somewhere else.