Key Takeaways
- MARA Holdings experienced a 17% surge in after-hours trading following the announcement of a strategic partnership with Starwood Capital Group for AI data center development.
- The partnership will transform MARA’s current mining facilities into infrastructure serving enterprise cloud and artificial intelligence clients.
- Initial plans call for developing over 1 gigawatt of IT capacity, with expansion potential exceeding 2.5 gigawatts in future phases.
- Fourth quarter financials revealed a $1.7B net loss, largely driven by a $1.5B impairment on digital asset holdings, while revenue fell 5.6% compared to the prior year.
- Company leadership maintains that Bitcoin continues to represent a fundamental component of MARA’s long-term business model.
Shares of MARA Holdings climbed approximately 17% during Thursday’s after-hours session following the company’s announcement of a significant agreement with Starwood Capital Group to establish AI-focused data centers throughout its domestic locations.
The equity reached $9.88 during extended trading hours after the news broke.
Marathon Digital Holdings, Inc., MARA
The arrangement calls for MARA to contribute its current data center infrastructure to the joint venture. Starwood Digital Ventures — the data center division of Starwood, which oversees more than $125 billion in total assets — will spearhead design work, construction activities, client acquisition, and operational management.
Both organizations will share responsibility for financing and running the facilities.
Expectations call for the platform to provide in excess of 1 gigawatt of IT capacity during the first development stage. Long-term projections suggest potential expansion surpassing 2.5 gigawatts.
MARA retains the ability to invest as much as 50% in individual joint venture initiatives, enabling the company to maintain equity stakes in assets producing operational cash returns.
Transitioning Toward Artificial Intelligence
The majority of MARA’s current infrastructure was originally constructed for Bitcoin mining operations, but these facilities possess something increasingly scarce and valuable: immediate connectivity to substantial electrical power resources.
With technology firms racing to obtain power capacity for emerging AI systems, these locations have become significantly more attractive.
Chief Executive Officer Fred Thiel characterized 2026 as representing “an inflection point,” referencing both the Starwood collaboration and a distinct arrangement with Exaion aimed at expanding enterprise-grade AI services.
This strategic shift positions MARA among a widening group of cryptocurrency miners redirecting their assets toward AI applications and high-performance computing. Bitfarms (BITF) recently underwent rebranding to become Keel Infrastructure as part of a comparable transition from mining operations toward HPC and AI infrastructure services.
The industry-wide movement gained momentum following Bitcoin’s latest halving event, which reduced mining compensation by 50%. Combined with increasing electricity expenses, declining cryptocurrency valuations, and intensifying market competition, profitability throughout the mining sector has faced considerable pressure.
Cryptocurrency Remains Part of Strategy
Notwithstanding this strategic evolution, MARA has not abandoned its cryptocurrency operations.
In his fourth quarter communication to shareholders, Thiel emphasized that “Bitcoin remains a core pillar of MARA’s strategy,” further noting that the organization’s long-term confidence in the digital asset category remains firm.
This affirmation accompanied challenging quarterly financial data.
MARA disclosed Q4 GAAP earnings per share of -$4.52, falling short of analyst projections by $3.35. Quarterly revenue totaled $202.3 million, representing a 5.6% year-over-year decline and missing forecasts by $49 million.
The quarter’s net loss reached $1.7 billion, contrasting sharply with net income of $528.3 million during Q4 2024. Approximately $1.5 billion of that deficit stemmed from fair value adjustments on digital assets maintained on corporate books.
Adjusted EBITDA registered at negative $1.5 billion, compared with a positive $796 million result in the corresponding period last year.
MARA explained the revenue shortfall as resulting from a 14% decrease in the average market price of bitcoin extracted during the three-month period.
The corporation maintains its headquarters in Hallandale Beach, Florida.
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