Kent Halliburton joined Jesse on Hashrate Up for a wide-ranging conversation about Bitcoin mining in 2026 — and he didn't pull punches on any of it.

From Paraguay's government seizing illegal rigs and deciding to mine with them, to why the AI infrastructure frenzy is actually a tailwind for disciplined Bitcoin miners, to what enterprise demand signals about where the market is heading — the full episode is worth a watch.

Here are the key takeaways.

The AI Pivot Is Creating Space for Bitcoin Miners

While the headlines focus on big operators chasing AI margins, Kent sees something different playing out on the ground.

"I think there's a bit of a data center infrastructure overshoot occurring right now," he said. At the same time, the miners who were Bitcoin-only are creating softness in traditional Bitcoin hosting capacity. Those two tracks don't compete — they run in parallel. For a focused, operationally proven BMaaS provider, that creates access to infrastructure opportunities that simply aren't available to newcomers.

His take: being in the market, building a reputation over four years, and operating as a professional business — not a Wild West actor — is what opens doors right now. Not just showing up with capital.

South Dakota Is Live (More Incoming)

Sazmining just launched its fifth data center in South Dakota — 100% carbon-free power at $0.055/kWh, with the Bitmain S21 XP available now. During the interview, Kent confirmed inventory was nearly sold out on launch day and noted that a Texas site is in the works, with more details coming soon.

The U.S. expansion is deliberate. Kent's view is that no jurisdiction is risk-free until Bitcoin is recognized as the global store of value — so the right strategy is to spread hashrate across multiple locations with strong fundamentals. The U.S. offers lower geopolitical risk. South Dakota delivers on cost and clean energy.

Revenue Share vs. Profit Share — And Why It Matters

One of the most clarifying moments in the episode is Kent walking through why Sazmining uses a revenue share model rather than a profit share model.

The difference: revenue share splits the Bitcoin when it comes out of the pool, before electricity bills. Profit share splits what's left after operating costs.

"The alignment of incentives is the primary reason we did it," Kent said. "If I am not helping my clients generate Bitcoin, I'm not getting paid." That structure means Sazmining shares in the gains and the pains — including bear markets. And during bear markets, the revenue share model makes Sazmining more cost-competitive for clients, helping them stay profitable for longer.

No custody. No intermediary. The mining pool pays out and the split happens at that moment.

Mining Is a Bitcoin Acquisition Vehicle — Not a Passive Income Play

Kent pushed back on how Bitcoin mining is commonly framed and made the case for thinking about it differently.

"This is quite literally the only way to generate Bitcoin," he said. "It's a decentralized money printer. You put dollars in through the form of electricity, hardware, and internet connection, and you get Bitcoin out."

The right comparison isn't dollars in vs. dollars out. It's: is mining a better way to acquire Bitcoin than buying it on an exchange? For a long-term Bitcoiner, that reframe changes the entire analysis. And right now, with the Bitmain S21 XP in South Dakota showing a Bitcoin energy cost of $44,734 while market prices sit considerably higher, the math is doing what it's supposed to do.

Paraguay: Seized Rigs, Government Mining, and What Comes Next

One of the more interesting stories in the episode: Paraguay's government didn't steal mining rigs from legitimate operators. They seized hardware from criminal enterprises — people running illegal connections off unmetered power lines at scale.

Then they realized those rigs could produce Bitcoin.

"I love that," Kent said, "because that suddenly means if they start mining as a government, they're going to get more educated on mining and understand the concerns that we bring up."

His read on where Paraguay stands: past the "fight you" phase, moving into "let's grow this together." The standstill came because miners can physically unplug and move. That portability is a feature — and it's what forced a more workable equilibrium.

Ethiopia: The Rate Increase Hasn't Landed

The proposed power price increase in Ethiopia that made headlines has not come to pass. Kent's operators on the ground believe it was more of an election-year signal to voters than a genuine policy shift. With an election coming up, and with Bitcoin mining now generating over $220 million annually for the state utility, the alignment of incentives points toward the government backing off — the same pattern that played out in Paraguay.

"If I look at the alignment of incentives, this looks to me to be the point at which the government backs off and says, we've hit a good stalemate here. We need your dollars."

What Enterprise Demand Is Signaling Right Now

Kent closed with a market read that's worth sitting with.

Retail demand is quiet right now. Enterprise demand is active. Smart money, in his view, is buying into the infrastructure during the downturn — and that pattern historically precedes bullish price movement.

The miners who stay plugged in during these windows are the ones who inherit better conditions on the other side.

Ready to start mining with Saz? → Check out our available rigs now!