This is a transcribed excerpt from the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode, they are joined by Marathon Digital Holdings CEO Fred Thiel to talk about what it’s like to be a miner of bitcoins listed on exchange during bear market. and what moves bitcoin miners can make to better secure their future while navigating bear markets.
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P: It seems that you are trying to spread yourself out geographically so that you are not at as much risk for these types of regulatory attacks. It totally makes sense to me. I’m curious, how affected have you been by China’s mining ban, if any?
There was such a strong narrative around all of these ASICs leaving China and flocking to other places or entering the market, I’m just curious to know what your experience has been with this given the position in which You are.
Fred Thiel: Yeah, we had a big tailwind that was offset, if you will, by the fact that our hardened facility had ongoing operational issues. I don’t need to go into detail because we are now completely out of this site, but it was a coal-fired power plant that kept failing. So we got really optimistic, “Awesome. All this hash rate goes down, we’re going to be able to mine a huge ton of bitcoins,” then suddenly, “Oh, the power plant is down again.
For us personally, we experienced – when the plant was running – great rewards. Some days we mined four blocks with the small amount of hash rate we had, which was great.
But eventually the global hash rate caught up and now we are back on trend where we should have been. We are at around 240 exahashes globally today and I think we will continue to see this hash rate increase as we continue to roll out, as other big miners continue to roll out.
I think we’ll eventually get back to a place where – potentially before the next halving – we’ll see a global hash rate, north of the mid-300s, something like that. It’s going to be really interesting for this industry. I think bitcoin price needs to move a lot to compensate miners for the impact of the halving in early 2024.