Mara Holdings (Mara) said in a shareholder’s letter that after the next harving event in 2028, Bitcoin miners still pulling power from the power source that touched the grid will struggle.
“For miners who still rely on the attached power of the grid, text is on the wall, and energy costs rise.
The statement comes as mining has already struggled to maintain profitability following the recent half-event in which Bitcoin’s pay cut in half, forcing some miners to diversify revenue streams into high-performance computing (HPC) and artificial intelligence (AI).
Read more: AI is here, but that doesn’t mean that Bitcoin Miner is over: BlockSpace
Mara, one of the biggest bitcoin miners, said in such a competitive market, there is a risk that miners will need to distinguish themselves or will struggle to stay behind and stay profitable. “Those who fail to differentiate are forced to become people who take prices in an increasingly competitive market.”
The miner solution, which already claims to employ “early leads,” is to ensure low-cost energy, vertically integrate operations and expand beyond the traditional Bitcoin mining business. It implies that miners need to meet other computing needs such as AI and HPC.
“The ability to acquire sites, generate low-cost energy, activate depreciated hardware and energy assets, and run vertically integrated models, from software and hardware to now energy generation, provides greater control over costs.” To this end, Mara recently purchased a Texas wind farm that reduces electricity costs for miners.
Mara said it will also increase the development and sales of data center infrastructure, becoming the foundational layer of infrastructure to meet computing needs.
“Whether it’s Bitcoin mining or AI reasoning, our technology will activate and build other technologies, and we believe Mara will provide picks and shovels to deploy new systems and services such as energy management, load balancing, infrastructure,” Mara said.
Miner also reported fourth quarter revenue, with $224.4 million in revenue shattering an average analyst estimate of $187.8 million, according to FactSet data. Marastock rose more than 8% in post-market trading, while Bitcoin fell 4.2% on Wednesday. Read more: Bitcoin hashrate growth slows amid tough market conditions for small miners