Recently, the Bitcoin (BTC), market was on an incredible ride. new all-time high (ATH), before undergoing notable volatility which resulted an 8% fall to the level of $65,500.
Marathon Digital, a US Bitcoin mining company, has been preparing for a decrease in revenues due to April. halving event.
Bitcoin miners Prepare for Post-Halving Shakeout
Bloomberg reportMarathon Digital has plans to increase its power infrastructure, and to enhance the mining capabilities to reduce costs and to ensure profitability.
Marathon hopes to minimize the negative impact on the revenue decline and increase margins after the half-doubling.
Marathon Digital announced recently that it had reached an agreement with a Texas-based data center to buy a 200 megawatt facility for more than $87,000,000. It is the second big investment that Marathon Digital has made in energy infrastructure. It acquired several sites worth $179 million at the beginning of this year.
Increase your ownership by increasing the amount of mining capacity Bloomberg says that Marathon, which has raised its investment in infrastructure from 3 to 53 percent, is aiming at greater cost effectiveness and operational efficiency.
The Bitcoin mining industry will undergo major changes after the halves, and some miners may face challenges in terms of profitability or even be forced to leave.
A Profitability Crisis is Coming
Fred Thiel of Marathon Digital, the company’s CEO highlights revenue reductions, and estimates that industry average breakeven points will increase from approximately $23,000 to around $43,000. Thiel declared:
Some miners may lose profits, be challenged, or look to exit the industry as a result of the Bitcoin reward dropping. Simple math shows that if industry-average breakeven points were around $23,000, they will rise to $43,000.
This does not mean, however, that Bitcoin will drop to $43,000 in the future from its current price of $69300. This is the breakeven price Refers to the cost of operation and profitability for miners such as Marathon Digital. This is not directly linked to the Bitcoin market price.
BTC was trading at $69300 as I write this and it is about to reach the important milestone of $70.000. The volatility of the cryptocurrency spiked during Friday morning’s session, but it has recovered since then. Its losses have been reduced from 8% to just 2.5%.
Image from Shutterstock; chart by TradingView.com
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Source: www.newsbtc.com