The CEO of the largest mining firm listed on the stock market spoke about the challenges of the sector.
The CEO of Marathon Digital, Fred Thiel, commented that the halving will not have a major immediate impact on the price of Bitcoin. This statement came during an interview on Bloomberg.
As the businessman remarks, the traditional rally that occurs in the price of the currency as a result of the halving is already partially discounted. Thus, the expected large escalation that occurs after 12 months of the cut would no longer be so enormous. In that sense, your company already seems prepared to take on a 2024-2025 of great challenges.
This does not imply that the cut is not relevant to the price, but rather that it was advanced compared to its previous behavior. In the three previous halvings, the significant increase in the currency’s exchange value usually occurred after approximately a year. At that moment, the definitive all-time high was recorded before entering a period of subsequent stagnation.
Regardless, the consensus among analysts remains that the currency still has considerable upside potential. Both institutional investors and issuance shortages are expected to continue to exert significant influence in the coming months.
Marathon CEO Attributes Bitcoin ETF for Pre-Halving Price Rise
Thiel suggested that the recent approvals of Bitcoin spot ETFs have accelerated the market appreciation, typically expected after the Bitcoin halving, by attracting significant capital to the market.
The Marathon CEO commented that this change has led to an unusual pre-halving price increase, diverging from the traditional pre-halving price decrease, with Marathon’s breakeven rate at around $46,000 per BTC to remain profitable after the halving.
Thiel expressed his views, stating the following:
“The approval of the ETF, which has been a huge success, has brought capital into the market and essentially brought forward what could have been the price appreciation that we would normally have seen three to six months after the halving.”
The Bitcoin price has seen an increase of over 60% in the months leading up to the halving, with experts indicating a continued bull market driven primarily by rising demand rather than the halving supply outage.
Marathon Digital CEO Believes Bitcoin Halving Won’t Be So Relevant
For the mining firm, the Bitcoin halving becomes a strong blow to the income it has been amassing until now. However, this firm is among those that will survive this cut well. The halving consists of a 50% cut in network rewards to miners for each valid block of transactions they process.
In February this year, the company reported computing power close to 30 EH/s. By 2025, the firm would reach the enormous figure of 50 EH/s. Therefore, if the price of BTC remains at the current point, or even if it drops a little, the firm would remain profitable. Such a situation could take the mining group’s shares on the stock market to new highs in 2025 or even sooner.
The company seems to have a guaranteed good moment, given that it covered all possible vulnerable sides. However, an idyllic situation of BTC conquering 200K per coin does not seem to be in Thiel’s expectations.
In a situation where the Bitcoin halving causes a huge increase, the situation for Marathon would be very fortunate. Judging by the statements of its CEO, the firm does not expect this to happen at all.
By Leonardo Perez
