Overview
- Fred Thiel says mining has become a zero-sum business where the energy price sets the floor for margins as competition intensifies.
- Thiel projects that by 2028 miners will either generate power, be owned by a generator, or be partnered with one, with grid-only models fading out.
- Many operators are repurposing sites for AI and high‑performance computing to diversify revenue and use existing infrastructure.
- Thiel warns the 2028 halving will drop block rewards to just over 1.5 BTC, which could be unsustainable for many unless fees rise or bitcoin’s price increases.
- Hardware makers and firms such as Tether are mining on their own gear, pushing hashrate higher, pressuring smaller operators, and reinforcing MARA’s focus on staying in the lowest‑cost quartile.