Why This Miner Refuses to Pivot to AI w/ Raphael Zagury

🔗 GUEST LINKS:Raphael Zagury on LinkedIn: https://www.linkedin.com/in/rzagury/Elektron Energy: https://elektronenergy.io/Twitter/X: @alphazeta ("Here Be Dragons" & monthly mining reports)🛠 Sponsored by:Luxor, Mining software, firmware & hashrate toolshttps://luxor.tech/Altair Technology, ASIC hardware, replacement parts & mining infrastructureCode: HASHRATEUPhttps://altairtech.io/aff/125/Everyone's leaving Bitcoin mining for AI. Raphael Zagury — co-founder & CEO of Elektron Energy, one of the largest private Bitcoin miners in the world — explains why they're doing the exact opposite.We break down the first-ever hash rate bear market: why this cycle feels different, why hash rate has been grinding down since October (not crashing like the China ban), and what happens when 60-70% of machines get wiped out at the next hashprice halving. Raphael makes the contrarian case that right now is one of the best times ever to start mining — if you can survive on the left side of the cost curve.We also get into why Elektron refuses to pivot to AI/HPC, how they pitch mining to institutions like Fidelity, the self-correcting mechanism in hashprice, and why stranded energy in Brazil and Africa is the real opportunity nobody's pricing in.TIMESTAMPS:0:00 Intro0:47 World Cup, bear markets & Bitcoin cycles2:49 The first-ever hash rate bear market explained3:36 How this affects one of the largest private miners3:53 Why this isn't the China ban (gradual grind vs sharp drop)5:33 Why miners are fleeing to AI/HPC6:50 Why Elektron sees this as an opportunity8:19 The risks in AI/HPC nobody is pricing9:05 Pitching mining to Fidelity & institutions9:30 Unit economics: mining is still profitable10:32 Cost curve & the self-correcting mechanism11:14 What happens when 60-70% of machines shut off13:02 Why institutions love contrarian miners14:37 The AI pivot & hash rate on the way back up16:32 When does mining beat just buying Bitcoin?19:08 Why this story is so hard to tell investors20:25 Market share, path dependency & hash rate dynamics22:20 Why now is one of the best times to start mining22:45 Capital & capital structure in mining23:40 Why the AI boom will boom and bust24:19 Building the optionality stack around energy25:17 Why AI/HPC innovation is still dangerously early28:34 electronics.dev: open-sourcing mining research30:29 The efficiency curve (log scale) explained31:50 Predicting the S23s with a regression line32:14 Why efficiency gains are about to flatten32:42 Network composition: S19s, S21s, S23s33:38 Machine-by-machine break-evens & cost to mine34:58 What a hashprice halving does to the network36:11 Summer heat & temperature-sensitive machines36:36 The shareholder-money era & underwater machines40:17 Stranded energy: wind in Brazil, curtailment credits42:19 Bitcoin's only customer is the protocol42:39 Old S19s at $30: 6-month ROI vs 10-year energy ROI43:11 Why Raphael is bullish on mining in Africa47:28 Speaking the language of energy & TradFi48:08 Batteries vs miners: a tenth of the capex49:54 "Buyers of last resort, sellers of first resort"50:47 RAPID FIRE: hashprice bottom, recycling, security & BrazilKEY TOPICS:- The first hash rate bear market — gradual grind vs the China ban shock- Why 60-70% of machines could turn off at the next hashprice halving- The self-correcting mechanism in hashprice and the cost curve- Why Elektron refuses to pivot to AI/HPC (and the mispriced risks)- When mining beats simply buying Bitcoin- The efficiency curve flattening as R&D dries up- Stranded energy, curtailment & why Bitcoin is the most flexible load ever invented📊 HashrateUp Hardware Deals: https://t.me/hashrateup📩 Free 5-Day Bitcoin Mining Course: https://hashrateup.com/newsletter-sign-up/#BitcoinMining #HashRate #BearMarket #BitcoinVsAI #Mining #Elektron #HashrateUp #ASIC