Marathon Digital Holdings’ (MARA) Fred Thiel said that Bitcoin price would need to drop 80% for the coin to stop being profitable for the company thus entering a challenging situation. Marathon is not worried about the past week’s dip. During a Bloomberg QuickTake Stock interview, Fred Thiel, Las Vegas-based company’s chief executive officer of Marathon, expressed assurance for Bitcoin’s future and stated that Bitcoin mining is “obviously a very profitable business” and the company can “ride this market for quite a long time.” Thiel expressed that, factoring operational mining costs (energy plus hosting), Bitcoin’s breakeven rate is roughly $6,500, meaning that the digital coin would need to drop at least 80% for Marathon to face challenging difficulties, so the price of Bitcoin plunging under $60,000 still translates into profits for them. What’s not in that cost, if you would, is the depreciation in the miners that we buy. We depreciate our miners over five years, so the payback on that is less than a year at today’s margins. (…) We are a very small team from an operational overhead perspective, so that gets covered very quickly. Thiel stated those costs are a very comfortable place for the company to be at and believes that Marathon is “one of the most efficient miners in the industry today” because of their agile model that focused on investing in R...
