Bitcoin Enters First Hashrate Bear Market, Twenty One Capital Ceo Says

Bitcoin is experiencing its first-ever “hashrate bear market,” Twenty One Capital CEO Raphael Zagury said at Bitcoin Asia in Hong Kong on Aug. 28, with network computing power still below its late-2025 record as miners shift capacity toward artificial intelligence. The Tether-backed Bitcoin treasury company subsequently filed the prepared transcript of Zagury’s remarks with the U.S. Securities and Exchange Commission. Hashrate Drawdown from the Late-2025 Peak Zagury told attendees that Bitcoin’s estimated hashrate approached 1.3 zettahashes per second late last year before entering a prolonged decline. His presentation materials calculated a drawdown of approximately 22% to 24% from the peak. The term “hashrate bear market” is Zagury’s description of the current cycle rather than an official Bitcoin network classification. It refers to the unusually long period during which estimated computing power has failed to return to its previous record. Bitcoin’s hashrate measures the estimated computing power miners contribute to securing the network and competing for block rewards. A higher figure generally means more machines or more efficient equipment is operating. Network Indicator Late-2025 Record Stated Drawdown Cycle Comparison Estimated Bitcoin hashrate Approached 1.3 ZH/s Approximately 22% to 24% Longest post-record recovery stretch Post-China-ban episode Rapid drop after 2021 ban Recovered after machines moved abroad Sharp disruption, quick rebound Current cycle No exact machine count Extended decline Operators weigh AI vs. Bitcoin mining ‘This Has Been the Longest Period’ Since a Record Zagury contrasted the current decline with the disruption caused by China’s 2021 mining ban. Hashrate fell rapidly during that episode as companies shut down Chinese facilities, but recovered as machines moved to North America, Central Asia and other regions. The present cycle has developed more gradually. Rather than relocating the same machines, operators are reconsidering whether new electricity and data center capacity should be allocated to Bitcoin mining at all. “This has been the longest period that we’ve seen from an all-time high until recovery,” Zagury said. Nearly All Miners Moving from Bitcoin to AI, Zagury Says The CEO’s presentation argued that nearly all miners are now moving from Bitcoin mining toward AI-focused workloads. Listed mining companies, he said, are redirecting infrastructure investment toward artificial intelligence instead of expanding Bitcoin-specific computing capacity. That shift is central to the hashrate bear market thesis. In the current cycle, new power and data center buildouts are increasingly being evaluated for AI use cases rather than being dedicated to Bitcoin mining. Zagury framed this as a structural change in how mining operators allocate their next generation of infrastructure. SEC Filing and Network Measurement Caveats Twenty One Capital filed the prepared transcript of Zagury’s Bitcoin Asia remarks with the U.S. Securities and Exchange Commission. The filing places the CEO’s hashrate analysis and AI-mining observations on the public record with the U.S. regulator. Network estimates vary because Bitcoin does not publish an exact count of active machines. Analysts infer hashrate from block production rates and mining difficulty, which means daily readings can fluctuate sharply. Zagury’s “hashrate bear market” label is not a formal metric or an official Bitcoin network designation. It is his characterization of the current cycle, based on the duration of the decline from the late-2025 high and the industry’s growing pivot toward artificial intelligence infrastructure. What Is a Bitcoin Hashrate Bear Market? It is a term used by Twenty One Capital CEO Raphael Zagury to describe a prolonged period in which Bitcoin’s estimated mining computing power stays below a previous record high. It is not an official Bitcoin network classification, but a description of the current cycle. Why Does Bitcoin Hashrate Matter? Hashrate measures the estimated computing power miners contribute to securing the Bitcoin network and competing for block rewards. A higher figure generally means more machines or more efficient equipment is operating, while an extended decline signals reduced capacity or a shift in resource allocation. How Does This Decline Differ from China’s 2021 Mining Ban? The 2021 ban caused a rapid drop in hashrate as Chinese facilities shut down, followed by a recovery as machines moved to North America, Central Asia and other regions. The current decline has developed more gradually, with operators reconsidering whether new electricity and data center capacity should be used for Bitcoin mining at all. What Did Twenty One Capital File with the SEC? Twenty One Capital filed the prepared transcript of Zagury’s Bitcoin Asia remarks with the U.S. Securities and Exchange Commission. The filing puts the CEO’s hashrate analysis and AI-mining observations on the public record with the U.S. regulator. Is Bitcoin’s Hashrate Still Below Its Record? According to Zagury’s presentation, Bitcoin’s hashrate remains below the late-2025 level that approached 1.3 zettahashes per second, with a drawdown of approximately 22% to 24%. Network estimates vary because Bitcoin does not publish an exact count of active machines, and daily readings can fluctuate sharply.