Biden’s tax on Bitcoin miners will drive the industry out of the United States – Marathon Digital Holdings (NASDAQ:MARA)

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Marathon Digital Holdings Inc CEO Fred Thiel has warned that Joe Biden’s tax on US Bitcoin BTC/USD miners will likely cause them to move their operations out of the country instead of generating the intended funds.

What happened: Speaking on the sidelines of the Bitcoin 2023 conference in Miami on Thursday, he said: “Bitcoin miners are just going to leave the United States, which is really what they’re trying to do,” quoted by The Block.

Thiel argued that implementing the tax would not result in an increase in renewable energy, as building a solar or wind farm already results in a two-year waiting list for interconnection.

He further added that Bitcoin mining in Texas is negatively impacting other industries, including gas-fired power plant companies that are working to evict miners. The banking lobby would also be interested in limiting the crypto industry which is potential competition for traditional banking.

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Why it matters: While Marathon Digital faces headwinds from other sectors of the economy, it faces relatively low levels of regulatory scrutiny, Thiel said, aside from the fact that it recently received a subpoena from the SEC, which he said was merely a request for information, and not an indication of wrongdoing.

Meanwhile, the company is looking to expand its business outside the country.

Price Action: At the time of writing, BTC was trading at $26,846.44, down 1.78% in the last 24 hours, according to Benzinga Pro.

Read more: Bitcoin, Ethereum, Dogecoin Fall in Regulatory Uncertainty: Analyst Predicts Apex Crypto to Fall 50% This Year, But Says No Need to Panic

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