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- Bitcoin Halving Impact Already Priced In, Says Marathon CEO
Bitcoin Halving Impact Already Priced In, Says Marathon CEO
Ticker Tea
April 10, 2024
📝 SUMMARY: Fred Thiel, CEO of Marathon Digital Holdings ($MARA), shared insights with Bloomberg TV regarding the upcoming Bitcoin halving event, which is expected to slash the reward for mining Bitcoin by half later this month. Thiel believes that the recent surge in Bitcoin’s value, which has seen the cryptocurrency rally over 60% since the beginning of the year, may have preemptively priced in the potential impacts of the halving.
Bitcoin's halving is a significant event in the cryptocurrency's lifecycle that typically occurs every four years, reducing the reward for mining new blocks. This event is designed to prevent inflation by reducing the rate at which new Bitcoins are created, theoretically increasing scarcity and boosting prices. However, Thiel posits that the massive influx of capital into the market from the successful launch of U.S. Bitcoin ETFs has accelerated the price appreciation usually seen months after a halving.
Marathon, a leading U.S. crypto mining firm located in Fort Lauderdale, Florida, operates several facilities across the country, including in Texas. As the halving approaches, Thiel highlights that, contrary to previous cycles where prices typically declined before the event, this time prices have risen, which may limit the halving's bullish impact on the market.
Thiel also noted that the reduced daily Bitcoin supply post-halving might only marginally affect prices. Yet, as a miner, he expressed enthusiasm about entering a halving period with rising rather than declining prices, which benefits mining economics. Marathon estimates that post-halving, their break-even point will be around $46,000 per Bitcoin to remain profitable.
Despite these insights, Marathon's stock has seen a modest uptick of less than 1% to $18.08 in New York trading, though it remains down about 23% for the year, reflecting broader market uncertainties and the speculative nature of cryptocurrency investments.
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