Marathon Digital CEO Fred Thiel warns of financial strain on small miners following the Bitcoin halving event in April. He highlights the capital disparity between small and large miners in the current market cycle.
Marathon Digital Expands Through Acquisitions, Thiel Urges Caution in Mining Industry M&A
Thiel emphasizes the challenges faced by smaller miners in scaling due to limited financing options, while larger miners have had opportunities to raise capital.
Marathon Digital prioritizes addressing this issue, finalizing two acquisitions recently and intending to continue acquiring assets. Thiel emphasizes the importance of prudence in acquisitions.
Marathon Digital Acquires Texas Bitcoin Mining Facility for $87M with 200MW Capacity, Aiming to Expand Before Halving
Marathon recently acquired a Texas Bitcoin mining facility for $87 million in cash, boasting a capacity of 200 megawatts. Additionally, it acquired two facilities in Texas and Nebraska for around $179 million, securing 390 megawatts of mining capacity.
The acquisitions align with Marathon's goal of expanding operations before the upcoming Bitcoin halving, expected around April 20, which will halve block rewards from 6.25 BTC to 3.125 BTC.
Marathon achieved record-breaking revenue of $387.5 million in 2023, marking a 229% increase compared to the previous year. Thiel attributes this success to energizing their fleet of mining rigs and optimizing performance.