Marathon Digital CEO Warns of Challenges Ahead for Small Miners Post Bitcoin Halving
Marathon Digital Holdings CEO Fred Thiel warned that smaller miners will face financial strain following the Bitcoin halving event in April.
In a CNBC interview published Friday, Thiel highlighted the disparity in access to capital and equipment financing between smaller and larger miners in the current mining market cycle.
He noted that while larger miners have had the opportunity to raise capital, smaller miners have faced challenges in scaling due to limited access to financing options.
“Post halving I think you’ll see the smaller miners come under financial stress, which will enable the bigger miners to consolidate the industry,” he said.
He added that Marathon has prioritized addressing this issue and recently finalized two acquisitions, with intentions to continue acquiring assets in the future.
“We have quite a heavy balance sheet. We’re ready to go as opportunities arise. But you have to be very prudent, you have to do these things at the right prices,” he said.
Marathon recently announced its acquisition of a Texas Bitcoin mining facility from Applied Digital for about $87m in cash. This facility, situated adjacent to a wind farm, boasts a capacity of 200 megawatts (MW).
In January, the company finalized the acquisition of two mining facilities located in Texas and Nebraska. This transaction, totaling around $179m, secured 390 MW of mining capacity and involved the termination of competitor Hut 8’s management of the facilities.
Marathon’s acquisitions align with its goal of expanding its operations before the upcoming Bitcoin halving, expected around April 20. This event, which occurs every four years, will halve block rewards from 6.25 BTC to 3.125 BTC. Consequently, smaller companies in the sector are expected to
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