Bitcoin Miners Flee Hashrate Bear Market for AI-Powered Profits

Bitcoin's network hashrate has entered its first-ever 'hashrate bear market' due to miners redirecting infrastructure toward artificial intelligence and high-performance computing, according to Twenty One Capital CEO Rapha Zagury. Speaking at Bitcoin Asia 2026, Zagury noted that the current downturn is the longest cycle so far between a hashrate all-time high and a subsequent recovery.

The shift in strategy for mining companies presents a significant change from their traditional business models, which have been closely tied to Bitcoin's price, mining difficulty, network hashrate, and electricity costs. Diversification into AI-related infrastructure could provide miners with an additional source of revenue but also means capital and capacity may increasingly be allocated according to demand from the broader computing market.

Zagury stated that nearly all publicly listed mining companies are moving away from pure large-scale Bitcoin mining and shifting toward AI. This trend has altered the economics of the mining industry, as miners now have alternative uses for their energy, computing infrastructure, and data-center capacity.