Fred Thiel, chief executive of MARA Holdings, said the same unit of electricity can generate more value when used to support AI infrastructure than when used for bitcoin mining, arguing that power has become the most important strategic asset for miners. His reasoning was straightforward: the bitcoin halving has continued to squeeze mining economics, while electricity remains the biggest operating cost for mining companies.
Power is moving to the center of the mining business
MARA currently controls more than 4GW of energy capacity. In February, the company reached a deal with private real estate investment firm Starwood Capital to convert about 1GW of existing mining sites into AI and high-performance computing facilities, with a longer-term goal of expanding that platform to more than 2.5GW.
On July 9, MARA also signed an agreement with HIF USA to acquire more than 1,200 acres in Matagorda County, Texas, located about 90 miles southwest of Houston. The site is expected to bring 1GW of grid capacity online by October 2027 and as much as 2GW by April 2028. The total price could reach $600 million, which the article says works out to roughly $300,000 per MW.
Once the site is fully energized, MARA’s potential power capacity would increase from 4GW to about 4.8GW, according to the report.
The widely repeated “15x” figure refers to cost, not revenue
Thiel also cited a set of numbers that has circulated widely. He said that building a bitcoin mining facility, including infrastructure and computing equipment, costs about $1 million per MW. Building an AI facility, by contrast, costs roughly $10 million to $15 million per MW for infrastructure alone, excluding compute equipment.
The article noted that this figure is often retold in Chinese-language discussions as meaning AI generates 10x to 15x more revenue per MW than mining. But that was not the point of Thiel’s original comment. He was talking about construction cost. In other words, AI data center development is not simply more profitable; it is also dramatically more expensive.
How that fits with MARA’s recent moves
The cost gap also offers context for MARA’s actions over the past year. The article pointed to the company’s sale of 15,000 BTC in March, which brought in $1.1 billion, alongside a $1 billion convertible note buyback. That move was interpreted at the time by some as a sign of a weaker view on the market, but in the framework presented here, it can also be read as a way to help fund capital expenditures tied to AI infrastructure.
The same logic applies to MARA’s partnership with Starwood, as large-scale AI facility buildouts require capital at a level miners may struggle to shoulder alone.
Mining is still part of the picture
Thiel did not say AI would replace mining outright. He said bitcoin mining still matters in regions where electricity is cheap and where spare or surplus power is available, because it remains a useful way to improve power utilization.
For mining companies that hold grid access and developable land, bitcoin mining may become one use case for power rather than the only one.
Key figures mentioned in the report
- MARA has more than 4GW of energy capacity
- Its partnership with Starwood Capital starts with about 1GW of mining sites being converted to AI and high-performance computing use
- The expansion target is more than 2.5GW
- The Texas site covers more than 1,200 acres in Matagorda County
- The project is expected to reach 1GW of grid capacity by October 2027 and up to 2GW by April 2028
- The total price could reach $600 million, or about $300,000 per MW
- A bitcoin mining facility costs about $1 million per MW including infrastructure and computing equipment
- An AI facility costs about $10 million to $15 million per MW in infrastructure alone, excluding computing equipment