Bitcoin Miners Relying on Grid Power Will Struggle After 2028 Halving
Marathon Holdings (MARA) cautioned that Bitcoin miners reliant on grid power will face challenges after the 2028 halving due to rising energy costs. Key points include:
- The upcoming halving may lead to industry-wide struggles, with many miners potentially unable to survive.
- The mining sector is already under pressure from a recent halving that reduced Bitcoin rewards, prompting some miners to explore high-performance computing (HPC) and artificial intelligence (AI) for revenue diversification.
- MARA emphasizes the need for miners to differentiate themselves in an increasingly competitive landscape or risk becoming price takers.
- MARA plans to secure low-cost energy and vertically integrate operations, recently acquiring a Texas wind farm to reduce power expenses.
- The company has also increased its focus on developing data center infrastructure for broader computing needs.
- MARA reported fourth-quarter sales of $214.4 million, exceeding analyst estimates of $187.8 million, leading to an 8% increase in post-market stock price, while Bitcoin declined by 4.2% on Wednesday.