Marathon Digital CEO sees more Bitcoin miners forced out as challenges mount

A range of challenges will essentially drive some Bitcoin miners out of the market, according to Fred Thiel, chief executive officer of Marathon Digital Holdings Inc., one of the biggest US-based participants in the sector.

Stagnant Bitcoin prices, high power costs, persistent competition along with a preprogrammed event that cuts mining reward in half have compressed miners margins and prompted them to make their power-hungry operations more efficient, Thiel said during an interview on Bloomberg Television.

“The larger miners that have the most modern fleets, the best energy costs and the most efficient are going to thrive while the smaller miners that either can’t raise capital, can’t upgrade their machines and can’t get out of essentially more expensive energy contracts are either going to consolidate or essentially going away,” Thiel said Tuesday.