Bitcoin Miner MARA Up 17% on Starwood AI Data Center Deal

What to Know

17% -- MARA Holdings shares surged after announcing a partnership with Starwood Capital Group to build AI data centers
$125 billion -- Starwood manages over $125 billion in assets and will lead construction through Starwood Digital Ventures
1 gigawatt -- The partners target roughly 1 gigawatt of computing capacity near term, scaling beyond 2.5 gigawatts
$202.3 million -- MARA reported Q4 revenue down 6% from Q4 2024, citing a 14% decline in average bitcoin prices mined

Bitcoin miner MARA saw its shares rally 17% on Thursday after revealing a partnership with Starwood Capital Group to convert its mining facilities into AI data centers. The deal lets MARA capitalize on soaring demand for artificial intelligence infrastructure by leveraging its access to large-scale power supplies across the United States.

Inside the MARA-Starwood Partnership

Starwood, which manages over $125 billion in assets, will lead design, construction, and tenant sourcing through Starwood Digital Ventures. Both firms will jointly finance and operate the projects.

The partnership targets roughly 1 gigawatt of computing capacity near term, with plans to scale past 2.5 gigawatts. Many sites slated for conversion were originally built for Bitcoin mining and already have the power access that tech firms are struggling to secure for AI workloads.

Why Are Bitcoin Miners Pivoting to AI?

Bitcoin miners are pivoting to artificial intelligence because the recent Bitcoin halving slashed block rewards in half, squeezing profit margins. Rising energy costs and fiercer mining competition have pushed companies toward alternative revenue, and AI data center hosting has emerged as the top option.

The trend goes beyond MARA. Bitfarms (BITF), another notable bitcoin miner, recently announced it is rebranding as Keel Infrastructure to pivot from cryptocurrency mining toward high-performance computing and AI development. The shift shows miners increasingly view their power access -- not their rigs -- as their most valuable asset.

MARA Stays Committed to Bitcoin

Despite the strategic push into AI, MARA CEO Fred Thiel stressed that the company is not abandoning cryptocurrency. In a shareholder letter, Thiel said Bitcoin remains a core pillar of MARA's strategy.

MARA also reported fourth-quarter earnings on Thursday, with revenue of $202.3 million -- down 6% from $214.4 million in Q4 2024. Management attributed the decline to a 14% drop in the average price of bitcoin mined during the period.

While the timing of a recovery in bitcoin prices is difficult to predict, our long-term conviction in the asset class remains unchanged.
— Fred Thiel, CEO of MARA Holdings

What This Means Going Forward

MARA's partnership with Starwood signals that the convergence of bitcoin mining and AI infrastructure is accelerating. With 1 gigawatt of near-term capacity and a roadmap to 2.5 gigawatts, MARA is positioning itself as a dual-purpose operator generating returns from both cryptocurrency and enterprise cloud services.

The 17% stock surge indicates the market sees the Starwood deal as a catalyst for long-term revenue diversification. As more bitcoin miners pursue similar pivots, those with the strongest power assets and most credible partnerships will likely command premium valuations going forward.