Bitcoin Miners Must Own Power—or Die Trying Before Next Halving, MARA CEO Says

Bitcoin mining is facing significant challenges with increasing competition, energy costs, and shrinking profits, as noted by Fred Thiel, CEO of MARA Holdings. He emphasized that miners without access to low-cost energy or innovative business models will struggle to survive. The industry is expected to become more brutal with the upcoming bitcoin halving in 2028, which will reduce block rewards to just over 1.5 BTC unless transaction fees increase or bitcoin prices rise substantially. Thiel remarked that, under current conditions, smaller miners might be pushed out as large players consolidate power and adapt to the changing landscape by investing in AI and private energy infrastructure. He warned that the traditional model of mining with grid power is becoming unsustainable, predicting that by 2028 miners would need to control their own energy sources to remain viable. The competitive environment is tightening, with the global hashrate increasing and margins declining, making it crucial for miners to strategically reduce production costs to survive in this evolving market.

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