MarathonCEO: Bitcoin "halving" benefits have been partially priced in
The "halving" of Bitcoin has already been partially priced in, according to the CEO of Marathon Digital. Bitcoin has risen by over 60% so far this year. The halving plan will cut miners' income in half by the end of April. Although the halving may have some impact on the price, miners are satisfied with it. The price of Bitcoin has recently experienced a slight decline, but there is still market demand
According to the Zhitong Finance and Economics APP, Fred Thiel, CEO of Marathon Digital (MARA.US), the largest cryptocurrency miner in the United States, stated that the upcoming "halving" of Bitcoin later this month (a software code update considered a catalyst for further price increases in Bitcoin) may have already been partially absorbed by the market.
Since the beginning of this year, the record demand for Exchange-Traded Funds (ETFs) directly holding tokens has driven optimism, pushing the original cryptocurrency Bitcoin up by over 60%. Historically, Bitcoin prices have typically risen in the months following the previous three "halving" events.
Fred Thiel, CEO of Marathon Digital, said in an interview on Tuesday: "I believe that the approval of ETFs has been a huge success, attracting capital into the market and advancing the price increase that usually occurs three to six months after halving. Therefore, I think we are already seeing some of it now, which also raises some demand."
Headquartered in Fort Lauderdale, Florida, Marathon Digital owns multiple mining facilities across the United States, including in states like Texas. Bitcoin mining is an energy-intensive process where companies or miners use specialized computers to validate transactions on the original blockchain and receive rewards in the form of tokens. The halving event in late April will halve the rewards, which are the main source of income for miners.
Thiel stated: "The halving event will reduce the daily supply of Bitcoin by about 450 coins, which may have a small impact on the price. But as miners, we are happy to enter the halving phase. Before the halving, the price has never dropped but instead risen, and everyone is clearly maximizing this."
On Tuesday, Bitcoin experienced its first decline in four trading days, dropping by about 4% to $68,773. Since reaching a record $73,797 on March 14th, this digital asset has fallen by approximately 7%.
Thiel estimates that after the halving, the breakeven point for the company will be around $46,000 per Bitcoin to maintain profitability.
As of the close on April 9th, Marathon Digital's stock price rose by less than 1% to $17.98. The stock has fallen by about 23.5% this year