Before 2021, if you wanted to mine Bitcoin, you were probably looking at a warehouse in Inner Mongolia or Sichuan. China controlled over 75% of the world’s Bitcoin mining power. Then, in a matter of months, it all vanished.

The Crackdown That Changed Everything

In mid-2021, China didn’t just tighten rules-it pulled the plug. The central government declared cryptocurrency mining a threat to energy goals and financial stability. Unlike past crackdowns that targeted trading or exchanges, this one went straight for the miners. Power grids were overloaded. Coal plants were burning too much. And China’s leadership decided Bitcoin mining had to go.

Provinces moved first. Inner Mongolia, a coal-heavy region with cheap electricity, banned mining in May. Sichuan, where miners relied on seasonal hydropower, saw restrictions kick in during the dry season. But the real hammer came in June: the National Development and Reform Commission listed cryptocurrency mining as an industry to be phased out. No warnings. No grace period. Miners had weeks to shut down or flee.

The result? A mass exodus. Entire mining farms packed up ASIC machines-each one weighing over 30 pounds-and shipped them across borders. Some moved by truck. Others flew in cargo planes. Within six months, China’s share of global Bitcoin mining dropped to under 20%. It was the largest industrial relocation in crypto history.

Kazakhstan: The Unexpected Winner

Kazakhstan didn’t have a reputation as a crypto hub before 2021. But it had two things miners needed: cheap power and no questions asked.

The country’s energy grid was built for heavy industry-coal-fired plants, natural gas, and surplus electricity from Soviet-era infrastructure. When Chinese miners arrived, they didn’t need new power plants. They just plugged in. Electricity cost as little as $0.02 per kWh in some regions. That’s less than half the price in Texas.

Kazakhstan’s mining share exploded. From 1.4% in 2019, it jumped to 18% by late 2021. For a while, it was the second-largest Bitcoin mining country in the world. Miners set up shop in former industrial zones near Almaty and Karaganda. Some even rented out unused factories.

But the boom didn’t last without fallout. In early 2022, the country faced rolling blackouts. Power demand from mining spiked so fast that households lost electricity during winter. The government responded by imposing temporary restrictions on new mining licenses and raising electricity rates for industrial users. Still, Kazakhstan remains a top-five mining hub today, with over 10% of global hashrate.

Texas: The American Safe Haven

While Kazakhstan offered cheap power, Texas offered something rarer: stability.

The state’s deregulated energy market lets miners negotiate directly with power providers. No red tape. No state-level bans. In fact, Texas lawmakers passed bills in 2021 explicitly protecting crypto mining as a legal industry. Governor Greg Abbott even called Bitcoin mining a “strategic asset.”

Miners flooded into Texas, especially around Fort Worth, Houston, and the Permian Basin. They didn’t just use coal or gas-they tapped into renewable energy. Texas has the most wind power of any U.S. state, and solar installations are growing fast. Miners became flexible energy consumers: they ramped up when wind was blowing and turbines were spinning, and they shut down during peak demand. That helped stabilize the grid during the 2021 freeze.

By 2025, Texas hosted about half of all Bitcoin mining capacity in the U.S.-roughly 2.6 gigawatts. That’s more than the entire country of Russia. Companies like Riot Platforms and Marathon Digital built massive campuses with thousands of machines. Some even partnered with energy firms to use flared natural gas from oil wells-waste that would’ve been burned off anyway.

Other Destinations: The Rest of the Map

Not every miner went to Kazakhstan or Texas. Some found niches elsewhere.

Russia became a quiet player. Miners moved to Siberia, where cold weather kept machines cool and electricity was cheap. But sanctions after 2022 made it harder to import new ASICs. Many operations stalled.

Iran, already under U.S. sanctions, used mining as a way to earn hard currency. The government even taxed miners and gave them subsidized electricity. At its peak, Iran accounted for nearly 5% of global hashrate. But power shortages and currency collapse made it unstable.

The U.S. didn’t stop at Texas. Georgia, Washington, and even North Dakota saw small surges. Canada, especially Quebec, attracted miners thanks to hydroelectric power. But Canada’s colder climate and stricter regulations kept growth modest.

Even countries like Paraguay and El Salvador got in on the action. El Salvador, which made Bitcoin legal tender, started small-scale mining projects using geothermal energy. Paraguay’s cheap hydropower lured operators looking for a quiet, stable base.

Why Did Miners Move So Fast?

Bitcoin mining isn’t like running a factory. You don’t need a port, a rail line, or a skilled workforce. You need two things: electricity and internet.

The machines themselves-ASICs-are modular. You can unplug them, load them onto a truck, and plug them back in a week later. Setup takes hours, not months. That’s why the migration happened so quickly.

Miners didn’t wait for permits. They didn’t build new data centers. They just moved. Some rented warehouse space in Kazakhstan. Others leased empty server farms in Texas. Many used pre-built container units that could be shipped anywhere.

This mobility made Bitcoin mining uniquely resilient. When one country cracked down, miners didn’t shut down-they relocated. And because Bitcoin’s protocol doesn’t care where miners are, the network kept running.

The Bigger Picture: Decentralization Wins

Before 2021, Bitcoin’s security relied on a single country. That was a vulnerability. If China had cut the internet, or turned off the power, the whole network could’ve been disrupted.

The exodus fixed that. Today, mining is spread across more than 100 countries. No single nation controls more than 18%. That makes Bitcoin more resistant to political pressure, censorship, or blackouts.

It also forced innovation. Miners now prioritize renewable energy. In Texas, wind-powered mining is common. In Canada, hydro is king. Even Kazakhstan is starting to invest in solar farms to offset coal use.

The result? A stronger, more distributed network. Bitcoin didn’t just survive the Chinese crackdown-it got better.

What’s Next?

The mining landscape keeps shifting. Kazakhstan’s government is tightening rules. Texas is seeing more scrutiny from environmental groups. New players like Saudi Arabia and the UAE are exploring mining with solar power.

But one thing is clear: miners won’t stay put if the rules change. They’ve proven they can move faster than any government can ban them. And as long as electricity exists, Bitcoin mining will find a way.