Bitcoin miners in parts of southern China were reportedly squeezed by electricity shortages as coal supply problems intensified across the country. Regional reports said soaring coal prices, blocked coal shipments, and emergency power rationing created a difficult operating environment for energy-intensive mining businesses. In affected areas, miners were described as being among the sectors hit hardest by the tightening power supply.
The report noted that Chinese miners were already facing shortages of mining rigs and hardware components, and electricity constraints added another layer of pressure. Financial columnist Lylian Teng of 8btc.com said the power crunch was linked to China’s standoff with major coal-exporting countries, with some coal carrier crews stranded for months. She added that provinces in southern China had introduced emergency electricity rationing measures. Teng also said that, beyond trade friction with Australia, extremely cold weather in Russia had reduced electricity transmission to China, worsening conditions in southern regions that rely on Russian power imports.
Miners pressured, but network activity stayed strong
Even with localized disruption, Bitcoin’s broader network metrics remained elevated. The article said bitcoin reached a high of $28,378 on December 27, 2020, while total network hashrate stayed around 130 to 145 EH/s. Mining difficulty was reported near 18.67T before edging slightly lower to 18.65T, suggesting the network continued to operate at a high level despite stress in some mining regions.
China-linked mining pools still accounted for a major share of network processing power. F2pool led with about 19.7% of distribution, or roughly 25.9 EH/s. It was followed by Binance Pool, Antpool, Viabtc, and Btc.com. That concentration underscored how meaningful China remained to the Bitcoin mining landscape, even as some operators reportedly struggled with reduced power availability.
Debate continues over China’s true share of hashrate
There were also differing estimates about how much of Bitcoin’s hashrate was still based in China. The Cambridge Bitcoin Electricity Consumption Index map showed China controlling about 65% of global hashrate. However, a member of the Cambridge Centre for Alternative Finance said the map was not fully up to date and would be refreshed in 2021. Separate estimates from Bitooda suggested China’s share may have fallen to 50% or less.
Overall, the episode highlighted how sensitive bitcoin mining operations can be to disruptions in fuel supply, cross-border electricity flows, and regional power policy. While smaller miners in southern China may have been more exposed to the shortage, the global Bitcoin network at the time was still running at above-average speed.