Marathon Digital CEO Warns of Challenges Ahead for Small Miners Post Bitcoin Halving
Marathon Digital CEO Warns of Challenges Forward for Runt Miners Post Bitcoin Halving
Marathon Digital Holdings CEO Fred Thiel warned that smaller miners will face monetary stress following the Bitcoin halving occasion in April.
In a CNBC interview published Friday, Thiel highlighted the disparity in get entry to to capital and equipment financing between smaller and bigger miners in the present mining market cycle.
He popular that while bigger miners gain had the opportunity to raise capital, smaller miners gain confronted challenges in scaling due to restricted get entry to to financing choices.
“Post halving I deem you’ll get out referring to the smaller miners reach below monetary stress, that also can honest allow the bigger miners to consolidate the industry,” he acknowledged.
Marathon Digital’s Expansion Approach in Anticipation of Bitcoin Halving Stress
He added that Marathon has prioritized addressing this utter and honest lately finalized two acquisitions, with intentions to continue acquiring property in the destroy.
“We now gain somewhat a heavy steadiness sheet. We’re fascinating to switch as opportunities arise. However you are going to gain to be very prudent, you’ll want to enact this stuff at the correct costs,” he acknowledged.
Marathon honest lately presented its acquisition of a Texas Bitcoin mining facility from Utilized Digital for about $87m in cash. This facility, positioned adjacent to a wind farm, boasts a skill of 200 megawatts (MW).
In January, the company finalized the acquisition of two mining facilities positioned in Texas and Nebraska. This transaction, totaling spherical $179m, secured 390 MW of mining skill and eager the termination of competitor Hut 8’s management of the facilities.
Marathon’s acquisitions align with its aim of expanding its operations sooner than the upcoming Bitcoin halving, anticipated spherical April 20. This occasion, which happens every four years, will halve block rewards from 6.25 BTC to 3.125 BTC. Which skill, smaller companies in the sector are anticipated to face challenges adore capital get entry to and excessive energy funds.
Marathon Achieves File Earnings in 2023
In 2023, the company experienced a surge in income, culminating in huge profitability. Its fourth quarter and annual earnings document unveiled document-breaking income of $387.5m for the twelve months, marking a 229% lengthen when put next to the earlier twelve months.
“2023 became once a document-breaking twelve months for Marathon, all the device thru which we achieved our predominant targets of energizing our snappy of previously purchased mining rigs and optimizing our efficiency,” Thiel acknowledged.
Source : cryptonews.com
