MARA CEO: Bitcoin mining companies must control power resources, otherwise they will be eliminated before the next halving

According to CoinDesk, Fred Thiel, CEO of MARA Holdings, said that the bitcoin mining industry is entering a difficult period, with increased competition, rising energy demand, and shrinking profits. He said that bitcoin mining is a zero-sum game, and the increase in computing power makes mining difficult and energy costs higher, and profit margins are compressed. The industry is increasingly brutal, and only mining companies that obtain low-cost, reliable energy or adopt new business models can survive. Many mining companies have turned to artificial intelligence or high-performance computing infrastructure, and some have been squeezed out of the market by players who deploy their own hardware at low cost. Thiel warns that after the next bitcoin halving in 2028, mining companies will live in a tougher environment, with block rewards falling to just over 1.5 bitcoins, and the mining economy will not be sustainable unless transaction fees rise or the price of the currency soars. Bitcoin was designed with the idea that transaction fees would eventually replace block subsidies, but that has not happened. Transaction fees are generally low, and it is difficult to replace block subsidies even if there is a brief spike. In this environment, small mining companies are under tremendous pressure. Large mining companies adapt by controlling energy sources and investing in artificial intelligence-dedicated infrastructure, while leaner mining companies may be forced to shut down. Mr. Thiel expects the market to self-regulate, saying: "By 2028, miners will either become power producers, be acquired by power producers or partner with power producers."