MARA Holdings, under CEO Fred Thiel, is pivoting sharply by converting its Bitcoin mining operations to AI data centers after revealing that AI workloads generate significantly higher revenue per unit of electricity. Industry data show AI workloads bring in about $25 per kWh, far exceeding Bitcoin mining profits per electron.
Transforming Power Usage for Higher Returns
With over 4 GW of energy capacity, MARA controls one of the largest power portfolios in digital infrastructure. The company is working with Starwood Capital Group to repurpose existing mining sites into high-performance AI infrastructure, initially targeting around 1 GW and aiming to expand past 2.5 GW. This strategy allows MARA to keep Bitcoin mining running on some hardware, while gradually converting parts of its facilities to support AI computing, a concept they call "mullet data centers." This approach helps maintain steady revenue during the transition without shutting down operations completely.
New Capital and Market Reactions
To fuel this transition, MARA sold approximately 20,000 BTC to reduce debt and improve financial flexibility. Partnering with Starwood brings institutional real estate investment into the mix, supporting the expensive overhaul of infrastructure to accommodate AI workloads, which require advanced cooling and networking solutions. Investors pushed MARA's stock up by 17% following the announcement, reflecting optimism about more reliable income streams from AI contracts compared to the volatile earnings from Bitcoin mining. However, the shift also means less exposure to potential Bitcoin price gains and depends heavily on successful execution of the conversion and securing long-term enterprise clients.
