According to a post by Jianping Kong, a former Canaan (Chinese technology company) executive, Bitcoin’s estimated hashrate has fallen by about 10% in one day, dropping from about 1,053 TH/s to just under 943 TH/s.
Kong said the decline equates to a loss of approximately 100TH/s to 110TH/s since Sunday, and that the change is due to the closure of mining farms in China’s Xinjiang region.
He wrote that “at least 400,000 machines” were taken offline based on an assumed rate of 250 TH/s per ASIC.
China’s mine instability
According to the report, China remains a volatile source of hashrate. Prior to 2021, China provided the majority of the network’s computing power. Currently, that share is estimated to be closer to 14% to 20%, depending on the data provider.
Cheap power is attracting miners, but political and regulatory changes can force large clusters off the grid without warning.
Conn gave a candid explanation of the recent government shutdown, saying temporary losses gave an advantage to other countries, adding: “The United States will win without saying a word.”
Impact on network
The data records a drop from 1,053 TH/s to approximately 943 TH/s, which is just over 110 TH/s, a roughly 10% drop. Such a move could change mining conditions.
Block discovery may be slightly slower until the next difficulty adjustment. Although the exact number is not precise, as the network’s total hashrate is always an estimate inferred from on-chain data, the size of this fluctuation is large enough to demonstrate how concentrated mining pockets can still drive global metrics.
Kong’s machine count estimate, and the 250 TH/s per ASIC figure he used, are his calculations and not confirmed stock numbers from operators on the ground.
Bitcoin mining operations and market changes
US mining companies are expanding production capacity as the global hashrate reallocates, a report reveals.
Image: CoinFlip
Hut8 announced it will build four new mines in Texas, Louisiana and Illinois, adding 1.5 gigawatts of power capacity.
American Bitcoin, a company with ties to the Trump family, is now part of that growth story. The company has acquired 16,299 Antminer U3S21EXPH units from Bitmain, and its directors include Eric Trump, the second eldest of US President Donald Trump’s three sons. These moves highlight a clear shift in where large-scale mining is taking place.
Featured image from Unsplash, chart from TradingView
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