Institutional Support Signals Bullish Outlook as Bitcoin Hashrate Climbs, Says CryptoQuant Chief
The return of publicly-traded mining operations supported by leading traditional finance institutions is driving Bitcoin's hashrate higher, signaling strong fundamentals for BTC, states Ki Young Ju of CryptoQuant.
The upward trajectory of Bitcoin's hashrate serves as an "indirect bullish signal" coming from institutional investors who provide backing to multiple publicly-traded Bitcoin mining companies, says Ki Young Ju, the founder and chief executive officer of analytics platform CryptoQuant.
"Higher hashrate means stronger security and better fundamentals as a store of value," Ju stated in an X post published on Thursday, noting that he interprets this development as a bullish indicator given that publicly-listed miners receive substantial support from traditional finance (TradFi) institutions.
The term hashrate refers to the total computational power deployed on a blockchain network, reflecting the number of hash calculations executed every second.
The hashrate of Bitcoin (BTC) has rebounded approximately 45% since reaching summer lows, climbing from around 726 exahashes per second (EH/s) recorded in July to approximately 1,050 EH/s by Wednesday, based on data from CryptoQuant.
Ju interprets this recovery as institutional validation of Bitcoin's security infrastructure and long-term store of value proposition, while it's also broadly regarded as a demonstration of faith from BTC mining operators.
However, the worldwide hashrate continues to trail its all-time high of 1,305 EH/s recorded in October 2025, during a period when Bitcoin's price was trading beyond $111,000. The cryptocurrency was changing hands at approximately $81,843 as Thursday's US stock markets commenced trading.
NIP Group Expands Bitcoin Mining Capacity
Publicly-traded Bitcoin mining companies, including the Nasdaq-listed NIP Group (NIPG), are persistently expanding their operational mining capacity, contributing additional momentum to Bitcoin's rising hashrate.
NIP Group disclosed a third tranche on-rack asset purchase agreement for the acquisition of approximately 4.47 EH/s of previously-deployed Bitcoin mining equipment, based on a Tuesday announcement.
Following the completion of this transaction, the acquired machines are projected to immediately enhance the miner's Bitcoin production capabilities, with combined hashrate spanning all three tranches anticipated to reach 13.85 EH/s
NIP Group presently holds the position as the 16th-largest publicly-traded Bitcoin mining operation, operating at 3.11 EH/s in hashrate capacity. Bitdeer holds the top position with 79.9 EH/s, based on Ziven data.
Shares of NIP Group dropped 6.8% during Wednesday's trading session to settle at $6.10, continuing its 86% downturn throughout the past year, based on Yahoo Finance data.
Additional major Bitcoin mining companies similarly experienced declining stock valuations, as the US equity market underwent its most severe selloff since July during Wednesday's session. TeraWulf, Core Scientific, Cipher Mining and IREN each suffered approximately 12% losses in their share valuations, as inflation data exceeding expectations created downward pressure on Bitcoin mining operations and AI infrastructure businesses.