Bitcoin Mining Retrenches as Hashrate Hits Three-Week Low

The decline in computing power aligns with a cooling trend in network participation. While the hashrate frequently surged above one zettahash in mid-September, recent sessions have seen daily readings fall below that threshold. Raphael Zagury, CEO of Twenty One Capital, has characterized this downturn as the network's first true "hashrate bear market," citing a 22% to 24% drop from the record highs established in late 2025. This reduction is partly attributed to major players pivoting their power and capital toward more lucrative artificial intelligence computing contracts.

Publicly traded miners are increasingly diverging in their treasury strategies. Companies like CleanSpark have actively sold portions of their production, while others, such as Hyperscale Data, have shuttered mining operations entirely to repurpose facilities for AI infrastructure. Despite these outflows, the network's Puell Multiple reached 1.13 by September 26, suggesting that daily issuance revenue remains slightly above the one-year average. Regional constraints, particularly in Ethiopia, have added further pressure, as utilities slash electricity allocations to miners due to reservoir shortages. Nevertheless, the Bitcoin protocol continues to process blocks as scheduled, with the automatic difficulty adjustment mechanism set to calibrate based on ongoing performance.