Marathon Digital CEO Fred Thiel warned that smaller miners will face monetary pressure following the Bitcoin halving occasion in April.
In a CNBC interview revealed Friday, Thiel highlighted the disparity in entry to capital and tools financing between smaller and bigger miners within the present mining market cycle.
He famous that whereas bigger miners have had the chance to boost capital, smaller miners have confronted challenges in scaling attributable to restricted entry to financing choices.
“Put up halving I feel you’ll see the smaller miners come beneath monetary stress, which is able to allow the larger miners to consolidate the business,” he mentioned.
Marathon Digital’s Growth Technique in Anticipation of Bitcoin Halving Stress
He added that Marathon has prioritized addressing this difficulty and not too long ago finalized two acquisitions, with intentions to proceed buying belongings sooner or later.
“We now have fairly a heavy steadiness sheet. We’re able to go as alternatives come up. However it’s important to be very prudent, it’s important to do this stuff on the proper costs,” he mentioned.
Marathon not too long ago introduced its acquisition of a Texas Bitcoin mining facility from Utilized Digital for about $87m in money. This facility, located adjoining to a wind farm, boasts a capability of 200 megawatts (MW).
In January, the corporate finalized the acquisition of two mining amenities positioned in Texas and Nebraska. This transaction, totaling round $179m, secured 390 MW of mining capability and concerned the termination of competitor Hut 8’s administration of the amenities.
Marathon’s acquisitions align with its aim of increasing its operations earlier than the upcoming Bitcoin halving, anticipated round April 20. This occasion, which happens each 4 years, will halve block rewards from 6.25 BTC to three.125 BTC. Consequently, smaller corporations within the sector are anticipated to face challenges like capital entry and excessive power bills.
Marathon Achieves Report Income in 2023
In 2023, the corporate skilled a surge in income, culminating in substantial profitability. Its fourth quarter and annual earnings report unveiled record-breaking income of $387.5m for the 12 months, marking a 229% enhance in comparison with the earlier 12 months.
“2023 was a record-breaking 12 months for Marathon, throughout which we achieved our major aims of energizing our fleet of beforehand bought mining rigs and optimizing our efficiency,” Thiel mentioned.
