MARA Holdings CEO Fred Thiel said power used for AI infrastructure generates much higher returns than power allocated to Bitcoin mining, arguing that electricity access is becoming the most important strategic asset for mining companies. He said the economics are changing as the Bitcoin halving continues to squeeze mining revenue while electricity remains the industry’s biggest operating cost. In that environment, miners need to control power resources directly or build close ties with utilities if they want to stay competitive.
Thiel also pointed to MARA’s recent infrastructure moves. The company is working with Starwood on a computing platform of about 1 gigawatt, with plans to expand that buildout to 2.5 gigawatts. Earlier this month, MARA announced the acquisition of a Texas site with about 2 gigawatts of power interconnection capacity for digital infrastructure development.
Even so, Thiel said AI will not fully replace Bitcoin mining. In regions with low-cost, idle, or surplus power, he said Bitcoin mining still serves as an effective way to improve electricity utilization. In his view, for miners with grid access and developable land, mining will increasingly become one use of power rather than the only one.
On July 29, BlockBeats reported that MARA Holdings CEO Fred Thiel said electricity deployed into AI infrastructure can generate far more revenue than electricity used for Bitcoin mining, making power access an increasingly important strategic asset for mining companies.
"If every unit of electricity is used for AI, the return is much higher than using it for Bitcoin mining," Thiel said.
Halving pressure is changing miner economics
Thiel said the Bitcoin halving continues to compress mining revenue, while electricity remains the largest operating cost for miners. Under those conditions, he said, mining firms need to control power resources directly or maintain close relationships with utility companies in order to stay competitive.
MARA is expanding power and computing capacity
He said MARA has partnered with Starwood to build a computing platform of about 1 GW and plans to expand it to 2.5 GW. The company also announced this month that it had acquired a Texas site with about 2 GW of power interconnection capacity for digital infrastructure development.
Bitcoin mining still has a role
At the same time, Thiel said AI will not completely replace Bitcoin mining. In areas with low-cost, idle, or surplus electricity, he said Bitcoin mining remains an important tool for improving power utilization.
In his view, for miners with grid interconnection access and developable land, Bitcoin mining will become one use case for power resources rather than the only one.
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