Cryptocurrencies

Bitcoin Needs to Drop 80% Before Marathon Loses Money on Mining

Breakeven rate is $6,500 after factoring in hosting and energy
Marathon shares plunged this week after SEC subpoena revealed

Marathon Digital Holdings CEO Fred Thiel says the company is responding to a subpoena from the U.S. Securities and Exchange Commission related to a partnership for a Montana data facility. He’s on Quicktake “Take Stock.”Source: Bloomberg

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By Katie Greifeld and Crystal Kim

November 17, 2021 at 9:15 PM UTC

This article is for subscribers only.

Bitcoin has a long way to drop before mining the digital token becomes unprofitable for North America’s largest crypto mining company.

After factoring in energy and hosting costs, the breakeven rate on Bitcoin for Marathon Digital Holdings Inc. is roughly $6,500, according to Fred Thiel, the Las Vegas-based company’s chief executive officer. Even with this week’s drop from an all-time high of $68,991 to around $60,000, the world’s largest cryptocurrency would need to plunge 80% before hitting the breakeven level.