Twenty One Capital CEO Raphael Zagury says Bitcoin mining transforms energy into a unique monetary asset as miners navigate a prolonged hash rate downturn.
Key Takeaways
- Twenty One Capital CEO Raphael Zagury defended Bitcoin mining as an economically productive use of energy.
- Zagury argued that mining converts energy into Bitcoin, which he described as the “best monetary asset” ever invented.
- His comments came during Bitcoin Asia 2026 in Hong Kong, where he discussed the industry’s prolonged hash rate downturn.
- He said miners with low energy costs and efficient equipment are better positioned to survive difficult market conditions.
- Zagury also highlighted mining’s potential role in grid management and its links to AI and high-performance computing infrastructure.
Twenty One Capital CEO Raphael Zagury is making the case that Bitcoin mining should be viewed not simply as an energy-intensive computing operation, but as a mechanism for transforming energy into a scarce monetary asset. His comments came as the mining industry faces what he described as Bitcoin’s longest hash rate bear market.
Speaking at Bitcoin Asia 2026 in Hong Kong on August 28, Zagury argued that energy consumption should not automatically be treated as waste. Instead, he said Bitcoin mining can create economic value from electricity while offering miners flexibility that many traditional industrial users do not have.
The comments are particularly notable because Zagury is not only the CEO of Twenty One Capital but also the founder and CEO of Elektron Energy, a Bitcoin mining and energy infrastructure business. Twenty One appointed him CEO in July, succeeding Jack Mallers.
Zagury’s Case for Bitcoin Mining
At the center of Zagury’s argument is a simple comparison: energy is an input, while Bitcoin is the monetary output created through the mining process.
An Elektron post associated with Zagury recently summarized that view by stating that energy is transformed through Bitcoin mining into “the best monetary asset that was ever invented.”
That is a distinctly pro-Bitcoin interpretation, rather than an objective assessment shared across the financial industry. Still, Zagury’s broader argument rests on several characteristics of the Bitcoin network that distinguish mining from conventional commodity production.
He pointed to Bitcoin’s difficulty-adjustment mechanism, which keeps block production at roughly one block every 10 minutes regardless of how much computing power joins or leaves the network. In his view, that makes Bitcoin fundamentally different from commodities such as oil and gold, where higher prices can encourage additional production and increase supply.
Mining Economics Depend on the Cost Curve
Zagury also pushed back against the idea that Bitcoin mining is inherently an unattractive business.
Instead, he compared mining with other commodity industries, arguing that profitability depends heavily on where an operator sits on the cost curve. A miner with cheap electricity and efficient hardware can remain profitable while a competitor with higher energy costs and older equipment may be forced to shut down.
That distinction is increasingly important as mining economics become more competitive. Zagury said hash price — a measure of the revenue miners can generate from their computing power — remains low compared with historical levels.
Bitcoin mining economics increasingly favor operators with access to low-cost electricity and highly efficient hardware.
The Energy Debate
Zagury’s most forceful argument focused on the long-running criticism that Bitcoin mining wastes electricity.
He argued that energy consumption itself is not inherently negative, noting that access to reliable energy is closely connected to economic development. He also drew on his experience working in Brazil’s Amazon region, where he said communities lacked reliable electricity and consequently faced limitations in healthcare, education and other basic services.
More specifically, Zagury highlighted Bitcoin mining’s ability to operate as a highly flexible electricity consumer. Unlike some industrial facilities that require continuous power and can take significant time to restart, mining machines can be switched off and back on relatively quickly.
That flexibility could allow mining operations to respond to changes in electricity supply and demand. Zagury argued that, under the right circumstances, this can make miners useful participants in power markets and potentially help stabilize electricity grids.
The argument does not eliminate the environmental debate surrounding Bitcoin. Mining still requires substantial electricity, and the climate impact depends heavily on where that electricity comes from and how it is generated. Zagury’s point is instead that the economic value created by that electricity should be considered alongside its consumption.
Bitcoin Mining Enters a New Phase
Zagury’s comments also come against the backdrop of a difficult period for Bitcoin miners.
At Bitcoin Asia 2026, his keynote was titled “The Dragon Awakens: Bitcoin’s First Hash Rate Bear Market.” Event materials confirmed that his session focused on the downturn in mining power and its implications for miners, investors and Bitcoin’s long-term security model.
According to the transcript of his presentation, Bitcoin’s network hash rate reached historic levels toward the end of 2025 before declining. Zagury contrasted the current environment with the 2021 Chinese mining ban, when hash rate fell sharply before recovering as mining equipment moved to other jurisdictions.
For miners, a prolonged period of slower hash-rate growth can change the competitive landscape. Operators that remain online while weaker competitors shut down can potentially capture a larger share of the network’s mining rewards.
Zagury also sees opportunities beyond traditional Bitcoin mining. He pointed to AI and high-performance computing as potential uses for mining infrastructure and energy resources, suggesting that mining facilities may eventually have multiple sources of economic value.
What It Means for Twenty One Capital
The mining thesis fits closely with Zagury’s broader vision for Twenty One Capital.
After becoming CEO, he outlined plans to build the company into more than a Bitcoin treasury vehicle, with operating businesses, capital-markets capabilities, acquisitions and eventually Bitcoin-focused lending among its priorities.
That strategy places energy and Bitcoin infrastructure closer to the center of the company’s long-term ambitions. Zagury has also said that Bitcoin itself remains the benchmark against which Twenty One evaluates opportunities, emphasizing that operating businesses need to justify their additional risks and complexity.
For investors, that distinction matters. A belief in Bitcoin does not automatically translate into a belief that every Bitcoin mining business will outperform the asset itself. Mining companies face electricity costs, hardware depreciation, financing requirements, operational risks and changing network difficulty.
Conclusion
Raphael Zagury’s latest comments frame Bitcoin mining as more than a mechanism for securing the blockchain. In his view, it is an economic process that transforms electricity into a scarce digital monetary asset while potentially creating additional value through flexible energy consumption and infrastructure.
Whether that thesis ultimately proves out will depend on electricity economics, mining efficiency, Bitcoin’s market value and the ability of operators to adapt to changing network conditions. For now, Zagury’s argument reflects a broader effort within the Bitcoin industry to position mining at the intersection of energy infrastructure, digital finance and the expanding computing economy.
