Key Highlights
- MARA Holdings shares surged 17% in after-hours trading after announcing a strategic collaboration with Starwood Capital Group to develop AI-focused data centers.
- Current MARA mining sites will be repurposed into cutting-edge infrastructure designed for enterprise cloud computing and artificial intelligence workloads.
- The joint venture targets over 1 gigawatt of initial IT capacity, with ambitious plans to scale beyond 2.5 gigawatts.
- MARA reported a $1.7B net loss in Q4, largely driven by $1.5B in digital asset impairments, while revenue dropped 5.6% year-over-year.
- CEO Fred Thiel emphasized that Bitcoin mining remains “a core pillar” of MARA’s business strategy moving forward.
MARA Holdings stock witnessed a dramatic after-hours surge Thursday evening, jumping approximately 17% after the digital currency mining firm announced a major partnership with Starwood Capital Group to develop AI data center infrastructure across its U.S. facilities.
Extended trading saw the company’s stock price climb to $9.88 following the partnership announcement.
Marathon Digital Holdings, Inc., MARA
Under the partnership framework, MARA will contribute its existing data center facilities to the joint venture. Starwood Digital Ventures — the data center arm of Starwood, which manages over $125 billion in assets — will lead design, construction, leasing, and operational management activities.
The two companies will jointly fund and operate these AI-focused developments.
The platform is expected to deliver more than 1 gigawatt of IT capacity in its initial phase. Future expansion plans aim to push capacity beyond 2.5 gigawatts over time.
MARA retains the option to invest up to 50% in specific joint venture projects, allowing the company to maintain ownership in revenue-generating assets.
Mining Facilities Transition to AI Applications
MARA’s existing facilities were initially built for Bitcoin mining purposes, but these sites now offer something increasingly coveted: direct access to large-scale power infrastructure.
As major technology companies aggressively compete for power resources to fuel artificial intelligence development, these mining facilities have become highly desirable real estate.
CEO Fred Thiel described 2026 as “an inflection point” for the company, pointing to both the Starwood partnership and a separate agreement with Exaion to expand enterprise AI capabilities.
This pivot aligns MARA with a growing trend among cryptocurrency miners repurposing existing infrastructure for AI and high-performance computing use cases. Bitfarms (BITF) recently rebranded as Keel Infrastructure as part of a similar strategic shift from mining toward HPC and AI data center operations.
The industry-wide transformation accelerated after Bitcoin’s most recent halving event cut mining rewards in half. Coupled with rising energy costs, weakened crypto prices, and heightened competition, mining profitability has experienced significant pressure.
Bitcoin Mining Operations Continue
Despite this infrastructure transformation, MARA remains committed to its cryptocurrency mining business.
In his Q4 shareholder letter, Thiel clearly stated that “Bitcoin remains a core pillar of MARA’s strategy,” underscoring the company’s continued belief in digital assets as a long-term opportunity.
This commitment comes amid difficult fourth quarter financial performance.
MARA reported Q4 GAAP EPS of negative $4.52, missing analyst estimates by $3.35. Revenue came in at $202.3 million, down 5.6% compared to the prior year and below expectations by $49 million.
The company posted a net loss of $1.7 billion for the quarter, a stark contrast to the $528.3 million net income reported in Q4 2024. Roughly $1.5 billion of this loss resulted from fair value adjustments on digital assets held on the balance sheet.
Adjusted EBITDA came in at negative $1.5 billion, compared to positive $796 million in the same quarter last year.
MARA attributed the revenue miss primarily to a 14% decline in the average price of bitcoin mined during the period.
The company is based in Hallandale Beach, Florida.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
