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The Bitcoin halving threatens small miners, Marathon Digital at the forefront of solutions!

Mon 25 Mar 2024 ▪ 4 min of reading ▪ by Mikaia A.
Getting informed Mining

Fast approaching, the 2024 Bitcoin halving, the fourth of its kind, is eliciting various reactions. While investors await eagerly, hoping for the confirmation of a bull run following the increased scarcity of Bitcoin, some miners dread the financial difficulties lying ahead. According to the CEO of Marathon Digital, this upcoming halving will have a significant impact on smaller Bitcoin miners.

Mineurs et pièces de bitcoin

Small Bitcoin Miners Facing Financial Storms

Marathon Digital, a prominent figure in the Bitcoin mining industry, recorded satisfactory results in 2023: integration of methane gas in Bitcoin extraction, 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 year-end, etc.

However, despite these flattering figures, Marathon has sparked controversy for its unorthodox practices, including Bitcoin transaction censorship in 2021 and the deployment of Slipstream, a service that sabotages the revenue of its competing Bitcoin miners.

The CEO of Marathon Digital warns of the upcoming challenges for small miners after the Bitcoin halving.

Fred Thiel, CEO of Marathon Digital, is sounding the alarm: small Bitcoin miners will have to face harsh financial winds following the halving scheduled for April. In an interview with CNBC, Thiel highlights the unequal access to financing and equipment between the small and large players in the current mining market.

While the behemoths have easily raised funds, smaller miners have been left by the wayside, their growth hampered by limited access to financing options. Thiel predicts that the reduction of BTC mining rewards will put unsustainable financial pressure on these small firms, paving the way for industry consolidation by the giants.

According to Crypto News, Marathon Digital is not sitting idly by in the face of this looming storm. The company has recently completed two acquisitions and plans to continue this strategy in the future to strengthen its operations. With acquisitions of mining facilities in Texas and Nebraska, Marathon is well-positioned to face the upcoming challenges.

The Bitcoin halving, scheduled for around April 20, will halve the block rewards, posing additional challenges to small players in the industry who are already facing hurdles such as access to capital and exorbitant energy costs.

A Historic Milestone in 2023

The year 2023 marked a year of success for Marathon, with impressive financial outcomes. The industry giant disclosed a record revenue of 387.5 million dollars for the past year, registering a spectacular growth of 229% compared to the previous year.

This notable leap has been praised by Fred Thiel, who emphasized the company’s efforts to revitalize its mining machine fleet and optimize its performance. With these impressive results, Marathon continues to position itself as a major player in the cryptocurrency mining industry, thereby paving the way for new growth opportunities.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.