Fred Thiel, CEO of MARA Holdings, has issued a stark warning to the bitcoin mining industry, highlighting the critical need for miners to manage energy costs effectively. Thiel emphasized that the sector is facing heightened competition, escalating energy expenses, and diminishing profit margins. He cautioned that only those with access to affordable energy or innovative business models will endure, particularly as the 2028 bitcoin halving approaches. Thiel also observed a trend where many mining firms are diversifying into AI and high-performance computing sectors. This shift is partly driven by the mounting pressure on smaller miners, who struggle to compete with larger entities possessing private infrastructure. The CEO's remarks underscore the urgent need for strategic adaptation within the industry to ensure long-term viability.