The possible impact on miners' profitability is highlighted by this notable increase over the current industry average of $23,000. Thiel discussed these observations in an interview with Bloomberg Television, emphasizing the difficulties and adaptations that miners will have to make.
A leading Bitcoin miner in the United States, Marathon Digital is making significant strides in developing new equipment and building out its power infrastructure in order to offset the expected decrease in revenue from the halving. Thiel underlined that as the business gets closer to its existing boundaries, it urgently needs more capacity.
Marathon Digital recently announced the purchase of a 200-megawatt data center in Garden City, Texas, for more than $87 million, in keeping with its plan to strengthen operations. The acquisition comes after Marathon invested a substantial sum of $179 million earlier in the year to secure several locations. By way of these acquisitions, Marathon has raised its ownership of its mining activities from roughly 3% to 53%.
Earlier this month, when Bitcoin hit an all-time high of $73,000, the stock prices of several Bitcoin mining companies saw a noticeable increase. The recent surge in Bitcoin has been especially beneficial to Marathon Digital, whose stock price is now $19.22, up more than 170% from the previous year.
The halving event, which is anticipated to drastically reduce miners' revenue, has the mining industry ready. As a result, businesses like Marathon are scrambling to expand in order to achieve greater profit margins and counteract the impending decline in sales.
