Rapha Zagury Says Bitcoin Mining Is Entering Its First Hashrate Bear Market

Twenty One Capital CEO and Elektron Energy founder Rapha Zagury said at Bitcoin Asia 2026 that the Bitcoin network is experiencing its first-ever hashrate bear market. According to ChainCatcher, he said network hashrate peaked near 1.3 ZH/s at the end of last year and has since declined gradually, marking the longest period yet from a historical high to the current level. Zagury said Bitcoin mining is not simply a good or bad business, but depends on where a miner sits on the cost curve. Miners with lower energy costs and more efficient machines can maintain higher margins, while those with higher energy costs and less efficient equipment may be forced to shut down. He said Bitcoin hash price has improved from earlier levels but remains relatively low by historical standards. When Bitcoin price rises faster than network hashrate, mining is more likely to outperform BTC. For companies deciding how to allocate capital, he said the best risk-adjusted approach is not choosing only Bitcoin or mining, but combining both; however, if only $1 is available, he would prioritize buying BTC. On energy, Zagury said consumption does not automatically mean waste and argued that energy is the foundation of economic development and human progress. He said Bitcoin mining is highly flexible because machines can quickly turn on and off with power supply, helping grids absorb idle or excess electricity and improve stability to some extent. He also said mining is creating previously less visible option value in areas including energy use, market share, proximity to the Bitcoin protocol, and infrastructure. As demand for AI and high-performance computing grows, he said miners' existing energy and data center infrastructure could also support additional use cases such as AI computing. He added that among large publicly listed miners, fewer companies are able to continue large-scale Bitcoin mining, and the industry is at a key intersection of the energy revolution and the Bitcoin revolution.