Fred Thiel, the Chairman of the Board of Directors and Chief Executive Officer of MARA, discussed various aspects of Marathon Digital Holdings, focusing on how they position themselves in the world of bitcoin mining. Thiel emphasized their focus on energy transformation and digital infrastructure, with Marathon being the largest publicly traded miner, operating across four continents with a fully vertically integrated tech stack. They have unique technologies such as a proprietary mining pool, firmware, and cooling infrastructure, giving them an edge over other miners. Their strategic focus is to amass as much bitcoin as possible through mining and opportunistic buying in the market.
Marathon’s strategy initially involved being asset light by hosting with third parties, but they have shifted towards vertical integration, acquiring 54% of their capacity’s infrastructure. They have tripled their capacity in 2023, aiming to reach 100% integration in the future. Marathon differentiates themselves from other miners by operating on multiple continents, avoiding regulatory risks in the U.S. and benefiting from a diverse geographic footprint. Thiel highlighted the synergy between bitcoin mining and AI, stressing the importance of stabilizing the grid and leveraging intermittent energy sources through a combined approach.
Thiel discussed Marathon’s technology advantages, including their own mining pool, innovative block submittal service, and Layer 2 solution, Anduro, which allows for faster transactions. Additionally, their liquid cooling and ASIC technology enable them to build custom miners for specific use cases, such as heating homes and powering solar systems. Thiel outlined Marathon’s long-term goal of reducing mining costs by providing services that utilize zero-cost energy, such as partnering with large companies for mutual benefit. Marathon aims to leverage their unique infrastructure and technology to navigate the evolving landscape of bitcoin mining and digital infrastructure.
Thiel addressed the fluctuations in hash price and stock prices, attributing them to factors like the Bitcoin halving and the interest of investors, particularly institutional investors. He discussed the volatility in the market, trading patterns, and the influence of larger players like MicroStrategy. Thiel emphasized the value proposition of bitcoin mining for investors seeking alpha and the potential impact of Biden’s budget proposal on the industry. He also highlighted the role of AI infrastructure and the opportunities it presents for Marathon in diversifying their revenue streams beyond bitcoin mining.
Thiel shared insights from a meeting with former President Donald Trump, noting Trump’s understanding of bitcoin’s strategic importance for the U.S. Thiel discussed the potential for the U.S. to hold bitcoin reserves and the significance of having a portion of global hashrate in the country for transactional purposes. He contrasted the perspectives of the Trump administration with the current Harris administration, expressing concerns about potential regulatory challenges for bitcoin mining. Thiel emphasized the importance of mining bitcoin in the U.S. and the need for policy support to ensure the country’s dominance in the industry.
Thiel touched on the importance of transparency in bitcoin mining, highlighting Marathon’s decision to imprint “made in the USA” on the blocks they mine. He addressed potential premium on U.S.-mined bitcoins, emphasizing that it does not impact fungibility. Thiel also discussed Marathon’s diversification into mining Kaspa, a webchain with distinct characteristics from bitcoin, as a profitable venture. He underscored the strategic approach to mining kaspa and leveraging its profitability relative to bitcoin. Thiel provided insights into the future of global hashrate, the institutionalization of bitcoin, and potential catalysts for price movement in the market, emphasizing the growth potential of the industry.
