Fast approaching, the 2024 Bitcoin halving, the fourth of its kind, is arousing various reactions. While investors eagerly await it, hoping for confirmation of a bull run following the increased scarcity of Bitcoin, some miners fear the financial difficulties that await them. According to the CEO of Marathon Digital, this upcoming halving will have a considerable impact on small Bitcoin miners.
Small bitcoin miners face financial storms
Marathon Digital, an emblematic figure in the Bitcoin mining industry, recorded satisfactory results in 2023 : integration of methane gas in Bitcoin mining, production of nearly 10,000 BTC in just 10 months (including 1,200 BTC in October), remarkable performance of Marathon Digital Holdings (MARA) stock at the end of the year, etc.
However, despite these flattering figures, Marathon generates controversy for his unorthodox practicesincluding the censorship of Bitcoin transactions in 2021 and the deployment of Slipstreama service that sabotages the revenue of its Bitcoin miner competitors.
Fred Thiel, CEO of Marathon Digital, Sounds the Alarm: Small Bitcoin Miners Will Face violent financial winds following the halving planned for April. In interview broadcast on CNBCThiel points the inequality of access to financing and equipment between small and large players in the current mining market.
While the behemoths have easily raised funds, the smaller miners have been left behind, their growth hampered by a limited access to financing options. Thiel predicts that reducing BTC mining rewards will put unsustainable financial pressure on these smaller companies, paving the way for industry consolidation by industry giants.
According to Crypto NewsMarathon Digital is not remaining idle in the face of this impending storm. The company recently completed two acquisitions and intends to continue this strategy in the future to strengthen its business. With some acquisitions of mining facilities in Texas and NebraskaMarathon is firmly positioned to face future challenges.
The halving of Bitcoin, scheduled around April 20will cut block rewards in half, imposing additional challenges on smaller players in the sector, already facing obstacles such as access to capital and exorbitant energy costs.
A historic milestone in 2023
The year 2023 was synonymous with success for Marathon, with impressive financial results to boot. The industry giant revealed record revenue of $387.5 million for the past year, recording a spectacular growth of 229% compared to the previous financial year.
This remarkable leap was welcomed by Fred Thiel, who highlighted the company’s efforts to boost its fleet of mining machines and optimize its performance. With these impressive results, Marathon continues to position itself as a major player in the cryptocurrency mining sector, paving the way for new growth opportunities.
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