On July 23, MARA CEO Fred Thiel revealed that artificial intelligence infrastructure generates significantly higher returns from electricity use than bitcoin mining does. According to Thiel, directing scarce power resources to AI delivers more revenue per electron than mining bitcoin.
This development is reshaping the Bitcoin mining industry’s focus. While mining rewards shrink due to scheduled halvings, electricity remains miners’ biggest cost. Thiel emphasized that controlling power supply or partnering closely with utilities is key for staying competitive.
MARA has been shifting its strategy toward owning power assets. Since late 2023, the company has acquired sites where it once only hosted equipment, securing nearly 70% of its operational infrastructure by the end of 2024. Its partnership with Starwood targets about 1 gigawatt of computing capacity soon, aiming to expand beyond 2.5 gigawatts. In July, MARA also agreed to buy a Texas location with access to roughly 2 gigawatts of power intended for digital infrastructure.
Despite the pivot to AI, Thiel insists bitcoin mining remains valuable where cheap or stranded energy is available. Mining can utilize electricity that might otherwise go wasted. This nuanced approach reflects a broader miner trend to balance traditional operations with new AI data center opportunities.
MARA’s evolving power strategy aligns with moves by other players in the sector, such as Hut 8’s $19.6 billion AI lease deals. These shifts shows the growing importance of electricity assets over just mining hardware.
Galaxy Digital’s recent Texas land acquisition also highlights how the industry is betting big on AI and high-performance computing alongside cryptocurrency activities.
This content is informational and not financial advice.
