Bitcoin News

Story: Bitcoin Miners Must Control Power to Survive the Next Halving, MARA CEO Warns

By James Thorp

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Miners Shift Toward AI and High-Performance Computing. With margins tightening, many mining firms are diversifying beyond Bitcoin to survive.

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The 2028 Bitcoin Halving Could Push Miners to the Breaking Point. Thiel warned that conditions may worsen significantly after the next Bitcoin halving in 2028.

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Smaller Miners Face a Difficult Road Ahead. In the current environment, smaller mining companies face increasing risk.

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Energy Control Becomes the Key to Survival. Thiel said that by 2028, the mining landscape will look very different.

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A Future of Consolidation and New Business Models. Looking forward, Thiel believes the mining industry will continue to evolve alongside Bitcoin’s…

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The Bitcoin mining industry is entering one of its most challenging phases yet, according to Fred Thiel, CEO of MARA Holdings (formerly Marathon Digital).

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Thiel explained in a recent interview that Bitcoin mining operates as a “zero-sum game.” As more miners add computing power to the network, it becomes harder and more expensive…

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According to Thiel, miners who fail to secure low-cost, reliable energy will struggle to remain profitable—especially as the network’s hashrate keeps climbing to new highs.

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With margins tightening, many mining firms are diversifying beyond Bitcoin to survive. Thiel said an increasing number of miners are pivoting toward artificial intelligence (AI)…

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These pivots allow miners to monetize their existing data centers by offering computing services that generate more predictable revenue than Bitcoin block rewards.

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At the same time, major hardware manufacturers—and even companies like Tether—are deploying their own mining equipment at scale.

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“Hardware vendors are running their own mining operations because customers aren’t buying as many machines,” Thiel noted.

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Thiel warned that conditions may worsen significantly after the next Bitcoin halving in 2028. During each halving cycle, Bitcoin reduces the block reward paid to miners by 50%.

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This drastic drop will put immediate pressure on miners’ revenue. Unless Bitcoin’s price rises sharply—or transaction fees increase enough to compensate—many miners could be…

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“Bitcoin was designed with the assumption that transaction fees would eventually replace block subsidies,” Thiel said. “But that still hasn’t materialized in a meaningful way.”

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