Focusing on technological innovation, Marathon seeks differentiated advantages

Marathon Digital Holdings (MARA) Chairman and CEO Fred Thiel has more than 35 years of experience in the technology industry. Recently, he was interviewed by foreign media (Forbis) and shared Marathon’s positioning in the Bitcoin mining industry and how to adapt to the trend of more and more small miners turning to artificial intelligence (AI).

Thiel emphasized that the company sits at the intersection of the energy transition and digital infrastructure and is currently one of the largest publicly listed Bitcoin mining companies, operating 13 mining farms across four continents. What distinguishes Marathon from other pure mining companies is its fully integrated technology stack.

“We have our own mining pool, which allows us to coordinate our own miners around the world and interact directly with the Bitcoin blockchain,” Thiel said.

In comparison, other miners often use third-party mining pools such as Foundry or Chinese mining pools. In addition, Marathon has developed its own mining machine firmware and cooling infrastructure, including single-phase and two-phase liquid cooling technology, and does not use water at all, which is a huge advantage when entering the AI ​​industry.

Click here to learn more about (mining).

It is worth mentioning that Marathon founded Auradine, the only U.S. manufacturer of Bitcoin mining ASICs, whose mining machines are able to continue operating despite multiple die failures and adapt to a wider temperature range. These technical advantages allow Marathon to maintain efficient operations in demanding environments, such as the Abu Dhabi data center in the Middle East desert, which uses liquid immersion cooling to achieve an uptime of 99.8%.

Source: Auradine Auradine’s two main Bitcoin mining machines

Diversified layout and political environment, seeking long-term development

Marathon’s strategy has gradually shifted from its initial asset-light model to vertical integration. In 2023, the company had 54% of its capacity infrastructure and will continue to increase this in the future. Thiel emphasized: “Our goal is to accumulate as many Bitcoins as possible, which is our core asset.” To this end, the company not only mines, but also directly purchases Bitcoins when market conditions are suitable.

When talking about the differences from other mining companies, Thiel mentioned that Marathon’s operating regions are widely distributed, reducing dependence on energy prices and policy risks in a single region. Competitor Riot Platforms, for example, is concentrated in Texas and faces the twin challenges of energy market volatility and policy changes. Marathon's global footprint allows it to avoid regulatory risks within the U.S., especially in an uncertain political environment.

Thiel also discussed the impact of US politics and the upcoming presidential election on the mining industry. He said: "In Biden's budget, there is a tax plan for Bitcoin mining energy use. The Harris administration seems to be friendly to AI, but it is still hostile to Bitcoin mining." However, Thiel emphasized that Bitcoin There are huge synergies between mining and AI. The workloads of both fluctuate and the combination helps stabilize the power grid.

Enter AI infrastructure and open up new opportunities

Marathon is applying its technology to the AI ​​industry, especially the edge computing inference market. Thiel believes that the development of AI will require a large number of edge data centers, and this is where Marathon can help.

He pointed out: "We believe that the application of AI at the edge will grow significantly in the next few years, and our infrastructure and technology can meet this demand."

Additionally, Marathon has invested in a San Diego-based company that installs solar panels and batteries in homes and uses excess electricity to mine Bitcoin. This model not only improves the utilization of renewable energy, but also provides consumers with electricity that is 25% below the market price.

Thiel emphasized that the company’s strategy is to pass on mining costs to the services provided by partners, ultimately achieving near-zero cost mining.

"We believe that combining Bitcoin mining with different applications can bring us revenue while reducing energy costs," he said.

Facing market challenges and adhering to long-term strategies

In response to the rising difficulty of Bitcoin mining and market price fluctuations, Thiel believes that although hash prices continue to decline, Marathon’s technical advantages and diversified strategies will allow it to stay ahead of the competition. He pointed out: "We see that the Bitcoin mining industry is moving from an upgrade cycle to expanding actual production capacity, which requires new investment and technology."

When talking about the company’s strategy for holding Bitcoin, Thiel explained that there are pros and cons to buying Bitcoin directly and investing in mining infrastructure. The key lies in confidence in the long-term price of Bitcoin.

"At times, we will choose to buy Bitcoin in the market rather than add mining capacity, depending on our best judgment on the use of capital," he said.

Overall, Marathon is seeking to maintain its leading position in the highly competitive cryptocurrency mining industry through technological innovation, diversified layouts, and entry into AI infrastructure. This may be the way for mining companies to transform and survive.

Further reading
Bitcoin mining giants keep making moves! Taking stock of Marathon’s four major layouts, will it lead the market?
Bitcoin Conference 2024) MARA CEO: The mining industry will flourish and there will be more channels to buy BTC in the future
Break through the bottleneck! NiceHash and Marathon team up to create the best mining tool for home miners

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.