Sichuan Energy Bureau audits 26 mining farms, Bitcoin network hash rate drops by over 16%, some mining pools lose 60% of hash rate

The Sichuan Provincial Energy Bureau issued a ban, forcing 26 local mining farms to shut down, leading to a 16.9% decline in the overall Bitcoin network hash rate. The hash rate of some mining pools concentrated in China dropped by over 60%.

Sichuan Mining Ban

Regulatory measures by Chinese authorities on the cryptocurrency mining industry have had a significant impact on the overall Bitcoin network hash rate. Inner Mongolia and Xinjiang, two of China's three major mining regions, had previously halted mining operations due to government crackdowns. The remaining mining hub in Sichuan issued a notice on June 18th ordering the closure of all cryptocurrency mining projects, with a deadline for completion of inventory by June 20th. Many large mining facilities in the region have been forced to shut down. According to data from YCharts, the Bitcoin hash rate dropped by 16.94% since the announcement.

Compared to other more diversified mining pools, those with concentrated hash power have been hit harder. Data from BTC.com shows that mining pools like BTC.TOP, Huobi, and OKEx have experienced significant drops in hash rate since the announcement, with some pools even decreasing by over 60%. Even the top-ranking Antpool.com suffered a 42% loss in hash rate.

Unless the Chinese government lifts the ban, the cryptocurrency mining industry in China is unlikely to return to its former glory. However, even with the shutdown of the three major mining regions in China, the Bitcoin hash rate has only reverted to last year's levels, posing no significant threat to network security. Furthermore, Chinese miners are seeking registration and relocating their facilities and equipment to other countries such as Kazakhstan, North America, and Russia. Once these miners complete their migration and restart mining operations, the Bitcoin hash rate is expected to recover to previous levels.