Bitcoin's rising hashrate represents an "indirect bullish signal" from institutional investors that are backing several public Bitcoin miners, according to Ki Young Ju, the founder and chief executive officer of blockchain analytics platform CryptoQuant.

"Higher hashrate means stronger security and better fundamentals as a store of value," Ju wrote in a Thursday X post, adding that he regards the trend as bullish because public miners are largely backed by traditional finance (TradFi) institutions.

Hashrate is a measure of the computational power of a blockchain network, indicating how many hash calculations are performed across the network per second.

Bitcoin's (BTC) hashrate has recovered by roughly 45% from this summer's lows, climbing from about 726 exahashes per second (EH/s) in July to approximately 1,050 EH/s on Wednesday, according to CryptoQuant data.

Ju interprets the recovery as an institutional endorsement of Bitcoin's security and its long-term value as a store of value, the rebound is also generally seen as a sign of confidence from BTC miners.

Even so, global hashrate remained below its peak of 1,305 EH/s, which was recorded in October 2025, when Bitcoin's price was trading above $111,000. The cryptocurrency was last changing hands at roughly $81,843 as the United States equities markets opened on Thursday, meaning the recovery in computing power is unfolding while Bitcoin trades well below the levels recorded at the prior hashrate peak.

NIP Group expands Bitcoin mining capacity

Public Bitcoin miners, such as Nasdaq-listed NIP Group (NIPG), continue to expand their mining capacity, further contributing to the network's rising hashrate.

NIP Group disclosed a third-tranche on-rack asset purchase agreement to acquire approximately 4.47 EH/s of already-deployed Bitcoin mining hardware, according to a Tuesday announcement.

Once the deal closes, the newly acquired machines are expected to provide an immediate boost to the company's Bitcoin production, with total hashrate across three tranches expected to reach 13.85 EH/s. The tranche's closing and the network's path back toward its 1,305 EH/s peak are the most concrete data points for tracking the recovery from here.

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NIP Group currently ranks as the 16th-largest public Bitcoin miner, with 3.11 EH/s in operating hashrate. Bitdeer leads the sector with 79.9 EH/s — more than 25 times NIP Group's operating capacity — according to Ziven data.

NIP Group's share price fell 6.8% on Wednesday to close at $6.10, extending an 86% decline over the past year, according to Yahoo Finance.

Other large Bitcoin miners also saw their stock prices fall as the US stock market suffered its sharpest selloff since July on Wednesday. TeraWulf, Core Scientific, Cipher Mining and IREN each lost about 12% of their share value, as higher-than-expected inflation figures pressured Bitcoin miners and AI infrastructure companies. The divergence underscores that the recovery Ju points to is playing out in network-level fundamentals even as listed miners face pressure in public markets.