Tokenizing Bitcoin mining power has been a dream for years, promising a way to turn raw computational muscle into tradable assets. TAOHash, a Tao Subnet, has quickly grabbed attention by amassing 6 exahashes per second—about 0.7% of Bitcoin’s total mining power—without owning a single server. Launched as Subnet 14 within the Bittensor ecosystem, TAOHash lets miners trade their hashrate for SN14 tokens, which they hope will rise in value, while validators stake those tokens to earn Bitcoin, creating a cycle of demand. This approach echoes earlier attempts to tokenize mining power, like @stakecube‘s MineCube and the now-defunct Bitcoin Standard Hashrate Token (BTCST) on Binance Smart Chain. Comparing these projects reveals why TAOHash might stand a better chance.
Back in 2021, MineCube offered a straightforward deal: for $4, anyone could buy a “Worker,” a share in a mining pool digging for Bitcoin, Ethereum, Litecoin, and Dash. The pool operated like a traditional setup, relying on physical hardware to generate rewards. If the pool mined coins, you got a cut—simple, but rigid. There was no way to trade Workers or reinvest earnings into a broader system, although many investors compunded their rewards into buying more “workers”. When Bitcoin’s price or mining difficulty shifted, users felt the pinch directly, with no buffer. MineCube’s model, tied to StakeCube’s infrastructure, couldn’t adapt quickly, and its growth was capped by the number of servers it could run.
Around the same time, BTCST emerged on Binance Smart Chain with a flashier promise. Each BTCST token represented 0.1 terahashes per second of Bitcoin mining power, standardized for efficiency. Miners contributed hashrate through Binance Pool and got BTCST tokens in return, while token holders could stake them to earn daily Bitcoin rewards. The idea was to make mining power tradable, letting people buy into Bitcoin mining without owning hardware. At its peak, BTCST tapped into 12% of Bitcoin’s global hashrate, but it crumbled by 2022. The problem? Once holders earned Bitcoin, they often sold their BTCST tokens, driving the price down. With no mechanism to keep demand steady, and a heavy reliance on Binance Pool, BTCST couldn’t weather the crypto bear market that saw Bitcoin’s price drop from $69,000 to $16,000.
TAOHash, launched in 2025, takes a different tack. Miners sell their hashrate to the platform, accepting SN14 tokens worth 50% less than the Bitcoin they’d earn directly—a gamble on SN14’s future value. Validators then use Bitcoin to buy SN14, staking it to earn more Bitcoin, which they often reinvest in SN14. This loop keeps demand for SN14 alive, unlike BTCST’s one-way reward system. TAOHash also benefits from being part of Bittensor, a decentralized network focused on AI computing. The platform’s goal isn’t just mining—it’s about channeling Bitcoin into Bittensor’s ecosystem, converting it into TAO tokens and supporting a larger vision of decentralized tech. Plus, by redirecting hashrate from big mining pools, TAOHash aims to make Bitcoin’s mining more distributed, tackling a long-standing concern about centralization.
Unlike MineCube, which was stuck with physical servers, or BTCST, which leaned on Binance Pool, TAOHash scales by incentivizing miners to redirect their existing hashrate—no hardware needed. This has let it grow fast, hitting 6 EH/s in weeks. Yet, the ghosts of past failures linger. BTCST collapsed when its token lost value, and TAOHash’s miners are also betting on SN14’s rise. If Bitcoin’s market falters or Bittensor adoption slows, miners may be tempted to pivot away from SN14 in favour of direct rewards—much like past tokenised mining ventures. However, TAOHash’s model introduces new dynamics: a built-in demand loop, a validator-miner feedback system, and alignment with a broader decentralised AI vision. These elements may offer resilience where earlier efforts fell short. Whether that will be enough depends not just on market conditions, but on the ecosystem’s ability to sustain participation and evolve with it.
