Marathon Gears Up For Halving With New Machines Worth $87M
Key Points:
- Marathon Digital Holdings is preparing for the “halving” Bitcoin code update that will significantly reduce miners’ revenue.
- The company’s strategy includes acquiring more power infrastructure and new mining machines, recently purchasing a Bitcoin mining center in Texas.
Marathon gears up for halving that threatens miner revenues. CEO Thiel outlines a plan including infrastructure acquisition and new mining machines.
Marathon Digital Holdings is bracing for a Bitcoin code update known as the “halving” that is set to dramatically decrease revenue for miners.
Marathon Gears Up for Halving: $43K Break-Even & Texas Data Center Purchase
The company’s CEO, Fred Thiel, has revealed their strategy to counteract the financial implications of this event, which includes the acquisition of more power infrastructure and the addition of new mining machines.
Marathon’s most recent move in executing this strategy is the purchase of a Bitcoin mining center located in Garden City, Texas.
The deal, costing around $87 million, follows a previous acquisition of multiple mining sites for $179 million. These transactions have led to the company owning 53% of its total mining capacity, a significant leap from the mere 3% it owned late last year.
Readmore: Bitwise Spot Bitcoin ETF Is Actively Preparing For A Wave Of Investment In Q2
Impact of the Halving on the Mining Industry
Thiel has warned that post-halving, some miners may lose profitability and may even face challenges that could force them to exit the industry.
According to him, the simple arithmetic shows that if the industry average break-even point was around $23,000 per Bitcoin, it will now rise to around $43,000 following the halving.
Shares of Marathon rose about 2% to $18.60, and they have surged over 400% since the end of 2022 as the crypto industry rebounded from a series of scandals and bankruptcies. During the same period, Bitcoin saw an increase of around 300% in its value.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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Marathon Gears Up For Halving With New Machines Worth $87M
Key Points:
- Marathon Digital Holdings is preparing for the “halving” Bitcoin code update that will significantly reduce miners’ revenue.
- The company’s strategy includes acquiring more power infrastructure and new mining machines, recently purchasing a Bitcoin mining center in Texas.
Marathon gears up for halving that threatens miner revenues. CEO Thiel outlines a plan including infrastructure acquisition and new mining machines.
Marathon Digital Holdings is bracing for a Bitcoin code update known as the “halving” that is set to dramatically decrease revenue for miners.
Marathon Gears Up for Halving: $43K Break-Even & Texas Data Center Purchase
The company’s CEO, Fred Thiel, has revealed their strategy to counteract the financial implications of this event, which includes the acquisition of more power infrastructure and the addition of new mining machines.
Marathon’s most recent move in executing this strategy is the purchase of a Bitcoin mining center located in Garden City, Texas.
The deal, costing around $87 million, follows a previous acquisition of multiple mining sites for $179 million. These transactions have led to the company owning 53% of its total mining capacity, a significant leap from the mere 3% it owned late last year.
Readmore: Bitwise Spot Bitcoin ETF Is Actively Preparing For A Wave Of Investment In Q2
Impact of the Halving on the Mining Industry
Thiel has warned that post-halving, some miners may lose profitability and may even face challenges that could force them to exit the industry.
According to him, the simple arithmetic shows that if the industry average break-even point was around $23,000 per Bitcoin, it will now rise to around $43,000 following the halving.
Shares of Marathon rose about 2% to $18.60, and they have surged over 400% since the end of 2022 as the crypto industry rebounded from a series of scandals and bankruptcies. During the same period, Bitcoin saw an increase of around 300% in its value.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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