Rapha Zagury, CEO of Twenty One Capital and founder of Elektron Energy, stated during his speech at Bitcoin Asia 2026 that the Bitcoin network is experiencing its first-ever bear market in hashrate. The hashrate of the Bitcoin network was close to 1.3 ZH/s at the end of last year, but has since been slowly declining, with the duration of this decline from the historical peak now setting a record. Zagury believes that Bitcoin mining is not simply a “good business” or “bad business”; it largely depends on where the mining company stands on the cost curve. Mining companies with lower energy costs and higher machine efficiency can maintain higher profit margins, while those with high energy costs and low equipment efficiency may be forced to shut down.

Currently, while the Bitcoin hashrate price has improved compared to before, it is still at a relatively low level when measured against historical standards. When the price of Bitcoin rises faster than the growth of the network’s hashrate, mining is more likely to outperform BTC. For companies, he believes that the best risk-adjusted allocation is not simply choosing to “buy BTC” or “mine,” but rather a combination of both; however, if only $1 can be allocated, he suggests prioritizing the purchase of BTC. Regarding energy issues, Zagury stated that energy consumption itself does not imply waste; energy is the foundation of economic development and human progress. He believes that one of the greatest characteristics of Bitcoin mining is its highly flexible load, as mining machines can quickly turn on and off based on energy supply, thus helping the grid absorb idle or surplus electricity and enhancing grid stability to some extent. Additionally, he believes that Bitcoin mining is generating “option value” that was not previously apparent, including aspects such as energy utilization, market share, proximity to the Bitcoin protocol, and infrastructure. With the growing demand for AI and high-performance computing (HPC), the existing energy and data center infrastructure of mining companies may also gain additional application scenarios such as AI computing power. Currently, among large publicly listed mining companies, there are fewer and fewer that can continue large-scale Bitcoin mining, and the industry is at a critical stage where the energy revolution intersects with the Bitcoin revolution.