Bitcoin News Today: Bitcoin Miners' Survival Hinges on Energy Control Before 2028 Halving

Bitcoin Miners Must Own Power-or Die Trying Before Next Halving, MARA CEO Says

The Bitcoin mining industry is entering a critical phase as rising competition, energy costs, and the looming 2028 halving threaten to squeeze profitability, according to Fred Thiel, CEO of MARA Holdings Inc. (NASDAQ:MARA). Speaking during a third-quarter earnings call, Thiel emphasized that miners must either secure low-cost energy or pivot to alternative revenue streams like artificial intelligence (AI) and high-performance computing (HPC) to survive, Coindesk.

Thiel described Bitcoin mining as a "zero-sum game," where margins compress as global hashrate expands. "The floor is your energy cost," he said, noting that smaller players risk being outcompeted by larger firms with integrated power solutions or hardware manufacturers running their own operations, Coindesk. This dynamic is already reshaping the sector, with companies like Tether and major equipment producers leveraging their cost advantages to dominate.

MARA's strategy reflects this shift. The firm recently partnered with MPLX, a subsidiary of Marathon Petroleum, to develop power generation and data center campuses in West Texas, Benzinga. Additionally, MARA acquired a 64% stake in Exaion, a French energy company, to bolster its HPC and cloud services capabilities, Benzinga. These moves aim to diversify revenue beyond mining while addressing the energy-intensive nature of the business.

The urgency is underscored by the next Bitcoin halving, scheduled for 2028, which will cut block rewards in half again. Thiel warned that without a significant rise in Bitcoin's price or transaction fees, the economics of mining will become unsustainable for many players. "If Bitcoin doesn't grow at 50% or more annually, the math gets very tough after 2028-and even tougher in 2032," he said, Coindesk.

MARA's Q3 results highlight both the challenges and opportunities in this landscape. The company reported 27 cents per share in earnings, missing estimates by 38.2%, but revenue of $252.4 million exceeded forecasts, Benzinga. Its Bitcoin holdings surged 98% year-over-year to 52,850 BTC, valued at over $5 billion, making it one of the largest corporate holders of the cryptocurrency, Benzinga. Despite these assets, MARA's stock has underperformed, down 32% recently, as investors remain skeptical about the mining segment's valuation, Yahoo Finance.

Broader energy trends also influence the sector. The European Union's push for renewable energy and grid modernization under the Green Deal could create new opportunities for miners seeking sustainable power solutions, EU Commission. Meanwhile, U.S. energy firms like ACT Energy Technologies are eyeing growth in liquefied natural gas (LNG) and AI-driven data centers, sectors that align with MARA's dual focus on power and technology, Finimize.

However, the path forward is fraught. Russia's recent attacks on Ukrainian energy infrastructure, which left millions without power, underscore the fragility of energy systems, Investing.com. For Bitcoin miners, reliance on stable, affordable electricity remains a critical vulnerability. Companies that fail to integrate energy generation or tap into emerging markets like AI infrastructure may find themselves edged out by more vertically integrated rivals.

As the industry matures, Thiel's message is clear: ownership of power-or innovative alternatives-is no longer optional. "Bitcoin was designed with the idea that transaction fees would eventually replace the subsidy," he said. "But that hasn't happened. The next few years will determine who adapts and who gets left behind," Coindesk.