Marathon CEO Says AI Business Is Far More Profitable Than Bitcoin Mining
Summary
- Fred Thiel said using power for AI infrastructure can generate much higher returns than Bitcoin mining.
- He said repeated Bitcoin halvings have reduced mining profitability, and that securing power resources and working with utilities is critical because power is miners' biggest operating cost.
- Thiel said Bitcoin mining will remain an important tool for improving power utilization in regions with cheap power or surplus power.
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Marathon Holdings, a US Bitcoin miner, said its artificial intelligence business is far more profitable than its traditional mining operation.
Fred Thiel, Marathon's chief executive officer, recently said that using power for AI infrastructure can generate much higher returns than Bitcoin mining, BlockBeats reported on July 29.
Repeated Bitcoin halvings have continued to erode mining profitability, he said. Power remains the biggest operating cost for miners, and companies need to secure power resources directly or build close partnerships with utilities to stay competitive.
Still, Thiel said AI is unlikely to fully replace Bitcoin mining. In regions with relatively cheap or surplus power, Bitcoin mining will remain an important way to improve power utilization.
For mining companies with grid interconnection rights and developable land, Bitcoin mining will be one of several ways to use power resources rather than the only option, he added.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul