Where is bitcoin being mined? (2025)

In June 2021, the Chinese Communists banned the mining of bitcoin and other cryptocurrencies. Until then, China was easily at the forefront of where decentralized network operations were. The reason was very cheap electricity from sources such as dams. Especially during the rainy season. Since then, mining operations have spread out all over the world.

Why does it matter where bitcoin is mined? Apart from the price of electricity, of course, it's about having enough experienced staff to take care of the ASICs. Also, from a network perspective, it's better if operations are located in secure regions of democratic countries.

Kazakhstan (around 13% of the total network capacity)

Let's start with the third largest. It is Kazakhstan, a country bordering China in Central Asia. The reason for this is the low cost. Kazakhstan has almost the cheapest electricity in the world, as part of the population is not connected to the grid and the country mines and burns a lot of coal. The price is often below €0.046/kWh. By comparison, companies in the EU pay on average €0.2889/kWh. However, Kazakhstan is not the best for mining operations because of safety concerns.

China (around 21% of total network capacity)

Although cryptocurrency mining is illegal, an estimated 21% comes from China. The state rules with a firm hand, but there are loopholes in such a vast territory. In the southwest of the country are the provinces of Sichuan and Yunnan, where there is a huge surplus of electricity thanks to hydroelectric power. The mining companies use VPNs and other methods to hide. They even sometimes have operations in containers that can be easily moved. However, legitimate miners avoid China.

USA (around 38% of the total network capacity)

By far the largest share of mining network is found in the United States. This may surprise some, as developed countries may have higher maintenance and operating costs. However, stability and cheap electricity trump this. In the US, we find cheap power from perhaps every source. One of them is the so-called waste gas from oil production. Popular states include Texas and Kansas, where our operations are located.