CEO MARA: Майнеры должны адаптироваться или покинуть рынок Translation: CEO MARA: Miners Must Adapt or Exit the Market

The bitcoin mining industry is facing a challenging phase due to intensifying competition and diminishing profitability. Fred Thiel, the CEO of MARA, shared this insight in an interview with CoinDesk.

He described mining as a zero-sum game, where the entry of new players increases the difficulty for existing ones.

«The margin is contracting, and the lower threshold for profitability is determined by electricity costs,» Thiel noted.

He believes the industry is becoming «more mature and rigorous.» Only those miners who have access to affordable energy or innovative business models will survive.

Many companies are shifting to adjacent areas, such as developing artificial intelligence or creating infrastructure for high-performance computing. Others are being pushed out by operators who use their own facilities at lower costs.

«Equipment manufacturers are launching their own farms because customers are purchasing fewer devices. The global hash rate continues to increase, meaning the profitability of other players is diminishing,» the MARA head added.

Thiel warned that the situation for miners will become even more challenging after the halving in 2028, when the block reward will drop to 1.5625 BTC. Mining economics will become unviable for many if transaction fees or the price of bitcoin do not rise.

The creators initially envisioned that over time, fees would replace the block reward, but that has not occurred, emphasized the MARA CEO. In this environment, small miners are under significant pressure. Thiel stated that «MARA’s strategy is to be in the lowest quartile of production costs.»

«In a contracted market, 75% of competitors will need to shut down before us,» Thiel explained.

He anticipates that the market will reach a self-regulating state when miners hit their profitability limits. According to his forecast, by 2028, participants will either have to generate their own energy, become part of energy companies, or partner with them.

«The days of miners simply connected to the power grid are numbered,» Thiel concluded.

Additionally, in November, Riot’s Vice President Josh Kane referred to bitcoin mining as «not an end goal, but a means» for the company.