Raphael Zagury, chief executive of Twenty One Capital (NYSE: XXI), said at the Bitcoin Asia 2026 conference in Hong Kong that Bitcoin is going through what he described as the first "hash-rate bear market" in its history. According to Zagury, the network’s total hash rate climbed to nearly 1.3 ZH/s at the end of last year and has continued to decline since then, marking the longest stretch on record in which hash rate failed to reclaim a prior peak.
Zagury argued that mining company failures in previous cycles were driven more by their own capital structures and cost structures than by Bitcoin’s price or hash-price levels. In his view, a hash-rate downturn can benefit miners that remain in the market because their share of the network rises naturally as weaker participants exit.
He also said that almost all publicly listed mining companies are leaving the sector. With Bitcoin trading at what he called compressed levels and the hash-rate setup turning more favorable, Zagury said large-scale mining is now in an advantageous position.
Twenty One Capital (NYSE: XXI) CEO Raphael Zagury said at the Bitcoin Asia 2026 conference in Hong Kong that Bitcoin is going through what he called the first-ever "hash-rate bear market" in the asset’s history.
According to Zagury, Bitcoin’s total network hash rate rose to nearly 1.3 ZH/s at the end of last year and has kept falling since then. He said this is the longest period on record in which the network has failed to recover its previous peak after hitting a high.
Mining losses tied more to structure than market levels
Zagury said past failures among mining companies were driven more by their own capital structures and cost structures than by Bitcoin’s price or hash-price levels.
He said a hash-rate bear market can actually work in favor of miners that stay in business, because their share of the network increases naturally as others leave.
Listed miners exit while scaled operators gain room
Zagury also said that nearly all publicly listed mining companies are exiting the industry. With Bitcoin at compressed price levels and the hash-rate backdrop now more favorable, he said large-scale mining is in an advantageous position.
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