The Largest Mining Company: “Bitcoin Price Needs to Stay Above This Level for Us to Continue to Make Profit”

Marathon, one of the largest Bitcoin mining companies in the US, plans to acquire additional energy infrastructure and deploy new mining machines. This move is in response to an upcoming Bitcoin halving event that is expected to significantly reduce miners' revenues.

Marathon CEO Fred Thiel said in a recent interview with Bloomberg Television:

“We need more capacity. We are currently reaching our limit as we speak, but we will continue to buy in this sector. The purchases we make have a direct impact on the costs of our mining activities. “The purchases we make help lower the minimum price level threshold that BTC must be at in order for us to make a profit.”

On Thursday, the company announced that it had agreed to purchase a 200-megawatt data center in Texas for over $87 million. This acquisition follows multiple properties that Marathon previously purchased for $179 million. As a result, Marathon now has 53% of total mining capacity by infrastructure, a significant increase from around 3% late last year.

In anticipation of the halving, cryptocurrency mining companies like Marathon are scaling up to expand margins and offset the expected decline in revenue.

Thiel said the following about the post-halving situation:

“After the halving, some miners, whose income will decrease as the rewarded Bitcoin will decrease, will lose their profitability, maybe they will be forced or maybe they will look for an exit. By simple calculation, if the industry average breakeven point was previously around $23,000 per Bitcoin, it will now be around $43,000.”

*This is not investment advice.