**[Analysis: Bitcoin is Experiencing Its First "Hashrate Bear Market," Highlighting Large Mining Enterprises' Opportunities for Scaling Up]** BlockBeats News, September 2 — Twenty One Capital CEO and Elektron Energy founder Rapha Zagury stated during his speech at Bitcoin Asia 2026 that the Bitcoin network is undergoing its first-ever hashrate bear market in history. The Bitcoin network's hashrate reached nearly 1.3 ZH/s at the end of last year but has since been gradually declining. The duration of this decline from its historical peak has now set a record for the longest period. Zagury believes Bitcoin mining is not simply a "good business" or "bad business"; the key lies in where mining companies stand on the cost curve. Mining enterprises with lower energy costs and higher mining machine efficiency can maintain higher profit margins, while those with higher energy costs and less efficient equipment may be forced to shut down operations. Although Bitcoin's hash price has improved compared to previous levels, it remains relatively low when measured against historical standards. When Bitcoin's price rises faster than the network's hashrate growth, the mining industry is more likely to outperform BTC. For enterprises, Zagury suggests that the optimal risk-adjusted strategy is not merely choosing between "buying BTC" or "mining," but rather a combination of both. However, if only $1 is available for allocation, he recommends prioritizing buying BTC. On the topic of energy, Zagury emphasized that energy consumption itself does not equate to waste; energy is the foundation of economic development and human progress. He pointed out that one of Bitcoin mining's greatest features is its highly flexible load capacity. Mining machines can be quickly turned on or off based on energy supply, helping power grids absorb idle or surplus electricity and, to some extent, enhancing grid stability. Additionally, he noted 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 development. With the growing demand for AI and high-performance computing (HPC), the existing energy and data center infrastructure of mining enterprises may also find additional application scenarios, such as AI computing power. Currently, among large publicly listed mining companies, the number of firms capable of continuing large-scale Bitcoin mining is dwindling. The industry is at a critical juncture where the energy revolution intersects with the Bitcoin revolution. [Original Link]