Bitcoin enters first hashrate bear market, Twenty One Capital CEO says

Twenty One Capital CEO Raphael Zagury said Bitcoin is experiencing its first “hashrate bear market” as network computing power remains below its late 2025 record and listed mining companies redirect infrastructure investment toward artificial intelligence. Summary Raphael Zagury called Bitcoin’s prolonged computing power decline its first ever hashrate bear market publicly. Bitcoin hashrate fell roughly 22% to 24% from its late 2025 peak, presentation materials showed. Zagury said artificial intelligence creates a competing use for miners’ power capacity and infrastructure today worldwide. Public miners increasingly pursue AI computing, though several companies continue operating substantial Bitcoin mining fleets. Lower network hashrate can increase surviving miners’ revenue share after Bitcoin adjusts mining difficulty downward. Zagury presented the argument at Bitcoin Asia in Hong Kong on Aug. 28. Twenty One Capital subsequently filed the prepared transcript with the U.S. Securities and Exchange Commission. Bitcoin hashrate approached 1.3 zettahashes per second late last year before entering a prolonged decline, Zagury said. His presentation materials calculated a drawdown of app...