According to a post by former Canaan (Chinese technology company) executive Jianping Kong, Bitcoin’s estimated hashrate fell about 10% in one day, dropping from around 1,053 TH/s to just below 943 TH/s.
Kong said the decline amounts to a loss of about 100 TH/s to 110 TH/s since Sunday and blamed it on changes to the closure of mining farms in China’s Xinjiang region.
He wrote that based on an assumed speed of 250 TH/s per ASIC, “at least 400,000 machines” were taken offline.
China mining instability
According to the report, China remains an unstable source of hashrate. Before 2021, China supplied most of the network’s computing power. Current estimates place the share closer to 14% to 20%, depending on the data provider.
Cheap power has brought miners back, but political and regulatory changes could push large clusters off the grid without warning.
Prime Minister Kung blatantly framed the latest lockdown, saying the temporary loss was a gain for other countries, adding, “America wins without lifting a finger.”
Network Impact
The data recorded a decrease from 1,053 TH/s to about 943 TH/s, which is just over 110 TH/s or a decrease of about 10%. Such a move could change mining conditions.
Blocks may be discovered a little more slowly until the next difficulty adjustment. The total hashrate of the network is always an estimate extrapolated from on-chain data, so exact numbers are imprecise, but the size of this swing is large enough to show how concentrated mining pockets can still move global indices.
Kong’s machine count estimates and the 250 TH/s per ASIC figure he used are his calculations and not inventory numbers confirmed by field operators.
Bitcoin mining operations and market changes
The report found that U.S. mining companies are expanding production capacity as global hashrate is reallocated.
Image: CoinFlip
Hut 8 announced it will build four new mine sites in Texas, Louisiana and Illinois, adding 1.5 gigawatts of power capacity.
American Bitcoin, a company linked to the Trump family, is now part of this growth story. The company acquired 16,299 Antminer U3S21EXPH devices from Bitmain, and its board of directors includes Eric Trump, the second of US President Donald Trump’s three sons. These moves highlight a clear shift in the sector where large-scale mining takes place.
Featured image from Unsplash, chart from TradingView
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