MARA Abandons Bitcoin Mining for AI Data Centers

MARA Holdings' CEO Fred Thiel has made it clear that AI data centers are more profitable than Bitcoin mining, prompting a major strategic pivot for the company. The math behind this shift is straightforward: AI workloads can generate around $25 per kWh of electricity, significantly outpacing the returns from Bitcoin mining.

MARA controls over 4 GW of energy capacity and has partnered with Starwood Capital Group to repurpose its existing mining sites into AI and high-performance computing infrastructure. The company's stock surged 17% on the news after announcing plans to scale beyond 2.5 GW initially targeting roughly 1 GW of capacity.

The partnership also involves selling Bitcoin, with MARA recently offloading around 20,000 BTC to repay debt and bonds. Thiel emphasized that electricity is 'the biggest cost item' in mining operations, which AI computation can command a premium for, something the mining business cannot match.