Bitcoin miner MARA Holdings announced a strategic joint venture with Starwood Property Trust to convert select U.S. Bitcoin mining sites into hyperscale data centers optimized for AI workloads. Shares jumped more than 15% in after-hours trading as investors welcomed the diversification push.
From Mining Rigs to AI Racks
According to a Feb. 26 announcement, the two companies will co-develop, finance, and operate digital infrastructure projects across MARA's power-rich portfolio. Starwood Digital Ventures, the data center development arm of Starwood Capital Group, will lead the conversion of existing mining facilities into campuses capable of serving enterprise, cloud, and high-performance computing workloads.
“MARA’s power rich sites give customers what they need most: predictable access to energy at scale. Our partnership with Starwood will allow us to turn that power certainty into capacity certainty, so customers can run diverse workloads close to their data and users,” said Fred Thiel, MARA’s Chairman and CEO.
1 GW Now, 2.5 GW Later
The joint venture targets sites with low-cost energy and strong grid interconnection, supporting both Bitcoin mining and AI-driven computing. Initial capacity of about 1 gigawatt is expected in the near term, with plans to expand beyond 2.5 gigawatts over time.
Market Context: Losses and Headwinds
MARA’s earnings report revealed a $1.7 billion quarterly net loss and falling revenue. Crypto mining stocks have been under pressure from a market downturn and thin margins. A January winter storm also pushed Bitcoin hashrate to a seven-month low after miners were forced to throttle operations. The Starwood deal marks a pivot toward AI infrastructure as a potential lifeline.