The Leading Mining Firm: “Bitcoin Price Must Remain Above This Threshold for Us to Sustain Profits”
Marathon, a prominent Bitcoin mining company operating in the United States, is taking measures to obtain additional energy infrastructure and deploy new mining machines. This strategic move is in response to the upcoming Bitcoin halving event, which is anticipated to significantly reduce miners’ earnings.
During a recent interview with Bloomberg Television, Marathon CEO Fred Thiel expressed the need for increased capacity, stating, “We are currently approaching our limit but we will continue to invest in this sector. Our purchases directly impact the costs involved in our mining operations, enabling us to lower the minimum price level at which Bitcoin must stabilize for us to generate profit.”
In a recent announcement, the company revealed its acquisition of a 200-megawatt data center in Texas for an impressive sum of over $87 million. This purchase follows Marathon’s acquisition of several properties worth $179 million. Consequently, Marathon’s mining capacity by infrastructure now stands at 53%, reflecting a significant surge from approximately 3% at the end of last year.
In anticipation of the halving event, mining companies like Marathon are expanding their operations to maximize profit margins and counterbalance the expected decline in revenue.
Regarding the post-halving situation, Thiel stated, “After the halving, some miners may face decreased profitability due to the reduced rewards offered by Bitcoin. They may be compelled to exit the industry or seek alternative solutions. By a simple calculation, if the industry’s average breakeven point was previously around $23,000 per Bitcoin, it will now rise to approximately $43,000.”
*Please note that this text does not constitute investment advice.