Marathon Digital’s CEO Forecasts Bitcoin’s Break-Even Point at $43k after Halving
Marathon Digital Holdings CEO Fred Thiel has made a bold prediction regarding the break-even point for Bitcoin mining after the upcoming halving event. According to Thiel, this break-even point will rise to approximately $43,000, a substantial increase from the current industry average of $23,000. This prediction highlights the potential impact on miners’ profitability and the challenges they will face in adjusting to the new reality.
To mitigate the anticipated revenue drop from the halving, Marathon Digital, one of the leading Bitcoin mining companies in the United States, is aggressively expanding its power infrastructure and deploying new equipment. Thiel emphasized the urgent need for greater capacity as the company approaches its current limits.
As part of its strategy to strengthen operations, Marathon Digital recently announced the acquisition of a 200-megawatt data center in Garden City, Texas, for a whopping $87 million. This purchase follows a significant investment earlier in the year, where Marathon secured multiple sites for $179 million. These acquisitions have significantly increased Marathon’s stake in its mining operations, from about 3% to 53%.
The recent surge in Bitcoin’s price, reaching an all-time high of $73,000, has had a positive impact on the stock prices of many Bitcoin mining companies. Marathon Digital, in particular, has benefited greatly from this rally, with its stock price currently standing at $19.22, marking a remarkable 170% increase from last year.
With the halving event expected to significantly reduce miners’ earnings, the mining industry is preparing for the challenges ahead. Companies like Marathon are racing to scale up their operations, aiming for wider profit margins to offset the impending decline in revenue.
