China’s Great Mining Migration Begins as Bitcoin Hashrate Plummets Below 100 EH/s

The Bitcoin network is undergoing one of the most dramatic structural shifts in its 12-year history. Following Beijing’s call for a severe crackdown on bitcoin mining and trading in May 2021, what crypto circles have dubbed “the great mining migration” is now in full swing — and the numbers are staggering.

Bitcoin’s hashrate has been steadily falling since June 14, when Sichuan miners were told to prepare for full operation shutdowns. According to data from mining analytics platforms, the network’s hashrate has dropped to just above 100 exahash per second (EH/s) — nearly 50% below its all-time high. The Sichuan Development and Reform Commission and the provincial Energy Bureau announced the closure of 26 suspected cryptocurrency mining and virtual currency projects, accelerating the exodus.

TL;DR

• Bitcoin hashrate plummeted to ~100 EH/s, down almost 50% from its all-time high
• Sichuan — China’s second-densest mining province — ordered 26 mining operations to shut down
• Five Chinese provinces now cracking down on mining: Inner Mongolia, Yunnan, Xinjiang, Qinghai, and Sichuan
• Major Chinese mining pools (Antpool, Btc.com, Binance Pool, Huobi Pool, Btc.top) all lost significant hashrate
• International destinations including the U.S., Kazakhstan, and El Salvador are courting displaced miners

China’s Five-Province Crackdown

The Sichuan shutdown is the latest blow in an escalating Chinese campaign against cryptocurrency mining. Before Sichuan, Inner Mongolia and Yunnan announced the closure of all crypto mining projects. Localized shutdowns were also ordered in Xinjiang, where roughly a third of all Bitcoin’s hashrate in China was concentrated, according to the University of Cambridge’s mining map. Qinghai followed suit with similar restrictions.

For large-scale mining operations, the situation is particularly dire. Unlike individual miners who can relocate equipment relatively quickly, industrial-scale farms face enormous logistical challenges in moving thousands of ASIC machines. The result has been a rapid decline in hashrate contributions from Chinese pools. Antpool, Btc.com, Binance Pool, Huobi Pool, and Btc.top have all reported significant losses in their associated hashrate, compounding the network-wide decline.

The Hashrate Collapse in Numbers

The speed of the hashrate decline has caught many analysts off guard. From a peak of roughly 191 EH/s in mid-May, the network has lost more than 45% of its computing power in just weeks. The impact is visible not just in raw hashrate figures but in Bitcoin’s mining difficulty, which adjusts downward as miners go offline. With fewer participants competing for block rewards, the network is self-correcting — but the transition period brings increased block times and transaction confirmation delays.

On June 15, Bitcoin was trading at approximately $40,155, down modestly on the day. Trading volume across major exchanges told its own story: Kraken reported total spot volume of $1.11 billion, compared to a 30-day average of $2.31 billion — a clear sign that market participants were stepping to the sidelines amid the uncertainty.

New Homes for Displaced Miners

The crackdown has triggered a global race to attract China’s displaced mining operations. Miami Mayor Francis Suarez publicly invited miners to set up shop in south Florida, citing the region’s abundant cheap nuclear power as a draw. Meanwhile, El Salvador’s President Nayib Bukele announced plans to build geothermal mining facilities powered by the country’s volcanic resources, offering green, cheap energy to miners.

Kazakhstan has emerged as an early beneficiary of the migration, with multiple mining operations reportedly relocating there. Chinese ASIC manufacturer Canaan has already established an overseas after-sales service center in the Central Asian nation, signaling confidence in the region’s mining future. Texas, with its deregulated energy market and abundant renewable resources, is also positioning itself as a prime destination for large-scale mining operations seeking a permanent new home.

Network Resilience Under Pressure

Despite the unprecedented hashrate decline, Bitcoin’s network has continued to process transactions without interruption. The protocol’s built-in difficulty adjustment mechanism, which recalibrates every 2,016 blocks, ensures that the network adapts to changes in total computing power. While the current adjustment period has seen longer block times, the system is functioning as designed.

The great mining migration represents a fundamental restructuring of Bitcoin’s geographic footprint. For years, China dominated global mining, with estimates suggesting that more than 65% of the network’s hashrate originated from Chinese operations. The current exodus is rapidly decentralizing that concentration — a development that many in the Bitcoin community view as a long-term positive, even as it creates short-term disruption.

Why This Matters

The events of mid-June 2021 mark a watershed moment in Bitcoin mining history. China’s crackdown didn’t just push miners out — it catalyzed a global redistribution of hashrate that would ultimately make the Bitcoin network more resilient and geographically diversified. The miners that survived the migration emerged stronger, operating in jurisdictions with clearer regulatory frameworks and, in many cases, access to genuinely renewable energy sources. The period also demonstrated that Bitcoin’s core protocol could withstand a near-halving of its security infrastructure without missing a beat — a powerful proof of the network’s antifragile design.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.