The Bitcoin mining industry found itself at a critical crossroads on April 28, 2021, as the network’s hashrate hovered near all-time highs around 150 to 180 exahashes per second while China’s Inner Mongolia region intensified its crackdown on cryptocurrency mining operations. The juxtaposition of record-breaking network security and growing regulatory pressure underscored the complex dynamics shaping the mining landscape during one of Bitcoin’s most transformative periods.
TL;DR
- Bitcoin’s network hashrate sat near all-time highs of approximately 150–180 EH/s in late April 2021
- Inner Mongolia escalated its anti-mining crackdown, threatening China’s dominant position in global Bitcoin mining
- Mining difficulty was near record levels in the 23–25 trillion range, reflecting intense competition among miners
- Gaming giant Nexon purchased 1,717 BTC worth $100 million, signaling growing institutional confidence
- BTC traded at $54,824 while transaction fees averaged $14.31 per transfer
Hashrate at Record Levels Despite Growing Threats
By late April 2021, Bitcoin’s network hashrate was operating at levels that would have been unimaginable just a year earlier. The computational power dedicated to securing the network and processing transactions had surged past 150 exahashes per second, a testament to the massive capital flowing into mining infrastructure worldwide. This exponential growth in hashrate directly correlated with the bull market that had propelled Bitcoin from around $10,000 in September 2020 to nearly $55,000 by April 2021.
The mining difficulty, which adjusts approximately every two weeks to maintain a consistent ten-minute block time, had climbed into the 23–25 trillion range. This meant that miners needed exponentially more computational power to solve blocks compared to previous years. The rising difficulty reflected the profitability of mining at current Bitcoin prices and the continued deployment of next-generation ASIC mining hardware, particularly Bitmain’s Antminer S19 series and MicroBT’s Whatsminer M30 series.
However, the concentration of this hashrate presented a significant vulnerability. China still controlled approximately 65 percent of the global Bitcoin mining hashrate in April 2021, with regions like Xinjiang, Sichuan, and Inner Mongolia serving as major mining hubs due to their abundant and often cheap electricity supplies.
Inner Mongolia Draws the Line
On April 28, 2021, reports emerged that Inner Mongolia was escalating its campaign against cryptocurrency mining operations. The region, which had been one of the largest Bitcoin mining centers in the world due to its cheap coal-powered electricity, was moving to implement stricter measures to shut down mining facilities. This crackdown was driven by China’s broader environmental goals and concerns about the energy-intensive nature of proof-of-work mining.
The Inner Mongolia crackdown was particularly significant because the region accounted for an estimated 8 to 12 percent of global Bitcoin mining hashrate. The provincial government had already announced plans in March 2021 to ban new mining operations, and by late April, authorities were moving to enforce these restrictions more aggressively. Mining operations in the region were given deadlines to cease activities, and electricity providers were ordered to cut power to known mining facilities.
The immediate impact on Bitcoin’s network was minimal on April 28 itself, as many operations continued running while assessing the situation. However, the writing was on the wall for what would become a massive migration of mining operations out of China in the months that followed, ultimately leading to a significant but temporary drop in network hashrate by mid-2021.
Institutional Demand Creates Counterweight
While the mining sector faced regulatory headwinds, institutional adoption of Bitcoin continued to accelerate. Japanese gaming giant Nexon announced on April 28 that it had purchased 1,717 Bitcoin for approximately $100 million, marking the largest cryptocurrency acquisition by a Japan-listed company. The purchase represented less than 2 percent of Nexon’s total cash reserves, signaling a measured but meaningful commitment to Bitcoin as a treasury reserve asset.
The Nexon acquisition was part of a broader trend of corporate Bitcoin adoption that had been gaining momentum since MicroStrategy’s initial $250 million purchase in August 2020, followed by Tesla’s $1.5 billion Bitcoin acquisition in February 2021. Each new corporate buyer added credibility to Bitcoin’s narrative as a legitimate store of value and, importantly for miners, created sustained demand that supported mining profitability even as difficulty increased.
With Bitcoin trading at $54,824 and mining difficulty at near-record levels, the economics of mining remained strongly favorable on April 28. Block rewards of 6.25 BTC plus transaction fees generated approximately $350,000 in revenue per block, providing ample incentive for miners to continue expanding operations despite the regulatory clouds gathering in China.
Network Fees and Transaction Dynamics
The Bitcoin network’s growing usage was reflected in transaction costs on April 28. The median fee to get a transaction confirmed in the next block stood at approximately $14.31, a significant amount that highlighted the network’s capacity constraints during periods of high demand. For context, the Ethereum network’s median fee was $5.89 on the same day, considerably lower despite Ethereum’s own congestion challenges.
Bitcoin was processing approximately 289,613 transactions per day, while the network settled $75.1 billion in transaction volume over 24 hours. The high fee environment was a double-edged sword for miners: while it increased per-transaction revenue, it also risked pricing out smaller transactions and pushing users toward alternative networks or layer-two solutions.
Why This Matters
April 28, 2021, captured a pivotal moment in Bitcoin mining history. The network’s hashrate was at record levels, demonstrating unprecedented security and investment in mining infrastructure. Simultaneously, the Inner Mongolia crackdown foreshadowed the massive Chinese mining exodus that would reshape the global mining industry within months. The combination of institutional demand from companies like Nexon and robust mining economics created a powerful bull case, even as regulatory risks mounted. For the mining industry, the events of this day highlighted the critical importance of geographic diversification and the growing role of North American and Central Asian mining operations that would soon emerge as the new centers of Bitcoin mining.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
150-180 EH/s while Inner Mongolia is cracking down. that hashrate didnt drop until China banned mining nationwide 3 months later
people forget the Inner Mongolia crackdown was the warmup act for what happened 2 months later when the whole country banned mining. Nexon buying 1717 BTC at 54k while miners were about to get expelled from their facilities is peak timing asymmetry
mongolia_exile_ Nexon at 100M was actually a great price. they bought the dip before the May crash and the China ban. institutional money timing the bottom while retail was still celebrating 54k BTC
Nexon buying 1717 BTC for $100M while Chinese miners were getting kicked out. institutional timing was immaculate as usual
Inner Mongolia crackdown was just the beginning. By June 2021 China banned mining entirely and hashrate crashed 50%. Wild that it was at ATH right before.
hashrate dropped 50% after the China ban and recovered within months. the network is more resilient than people give it credit for
resilient yes, but lets not forget mining centralization just shifted from China to Kazakhstan and Texas. different geography, same concentration risk
sato_mode shifting from China to Kazakhstan then Texas just moved the concentration risk. Kazakhstan had worse energy infrastructure and Texas has ERCOT reliability issues. same problem different geography
the hashrate going from ATH to -50% in two months was wild. proved the network can handle sudden geographic shifts though
coal_kick_ Inner Mongolia was the warning shot and nobody listened. two months later China banned mining entirely and hashrate crashed 50%
coal_kick_ nobody listened because miners were making too much money to care. the China ban was obvious 6 months before it happened
150 to 180 EH/s in April 2021 with 23 to 25 trillion difficulty. the miners who survived the China ban and relocated to Texas and Kazakhstan had the cheapest energy for the next 2 years. the crackdown was the best thing that happened to hashrate decentralization
Nexon buying 1,717 BTC for $100M barely got any attention. A publicly traded gaming company going on corporate treasury allocation was a big deal.
Nexon was early on the corporate treasury play. most gaming companies are still sitting on cash losing to inflation
Average tx fee of $14.31 was brutal. No wonder Lightning adoption started picking up around this time.
hashrate dropped 50 percent after China ban and recovered in 4 months. the network absorbed the biggest mining disruption in history and barely flinched
Nexon buying 1717 BTC for 100M was April 2021 and nobody blinked. six months later every company was doing it and getting a 2x on their stock for announcing it
14 dollar tx fees while hashrate was at ATH. the network was congested and expensive right before China banned mining. fees dropped to single digits after the crackdown ironically
Nexon buying 1717 BTC for 100M barely made headlines. six months later every company adding BTC to their treasury got a 2x on their stock