TechFlow, Nov 12 — According to CoinDesk, MARA Holdings CEO Fred Thiel said that the Bitcoin mining industry is entering a difficult period, facing challenges such as intensified competition, rising energy costs, and shrinking profit margins.
Thiel pointed out that Bitcoin mining is a zero-sum game; as more participants add computing power, profit margins for everyone are being squeezed. He warned that after the next halving in 2028, block rewards will drop to approximately 1.5 BTC, and unless transaction fees rise or the Bitcoin price surges significantly, many miners' business models will become unsustainable.
Currently, many mining companies are shifting toward adjacent fields such as artificial intelligence or high-performance computing. Hardware suppliers have also started their own mining operations due to declining customer demand for equipment. Thiel emphasized that only miners with low-cost, reliable energy sources or innovative business models will survive: "By 2028, you'll either be a power producer, owned by a power producer, or partnered with one. The era of simply plugging into the grid to mine is coming to an end."
