MARA Expands into AI Data Center Business, Stock Price Rises 17% After-Hours

Odaily News: Bitcoin mining company MARA Holdings announced a partnership with investment firm Starwood Capital Group to build large-scale data centers for artificial intelligence and cloud computing clients at its existing mining sites in the United States. Following the announcement, the company's stock price rose approximately 17% in after-hours trading.

According to the agreement, the two parties will convert some facilities originally used for Bitcoin mining into AI data centers. Starwood's subsidiary, Starwood Digital Ventures, will be responsible for the design, construction, and client acquisition. The initial phase of the project is expected to provide approximately 1 gigawatt of computing power capacity, with plans to expand to over 2.5 gigawatts in the future. The project will be jointly funded and operated by both parties.

This collaboration marks a significant strategic shift for MARA. Due to their large-scale power access capabilities, such mining facilities have become increasingly valuable in the context of rapidly growing demand for AI computing power. In recent years, facing pressures from declining block rewards due to Bitcoin halving, rising electricity costs, and intensified competition, several mining companies have begun pivoting towards AI computing infrastructure.

However, MARA stated that Bitcoin will remain a core component of its long-term strategy. The company's management emphasized that despite short-term price volatility uncertainties, its long-term confidence in Bitcoin as an asset class remains unchanged.

Earnings report data shows that the company's fourth-quarter revenue was $202.3 million, a year-on-year decrease of approximately 6%, primarily impacted by a roughly 14% decline in the average mining price of Bitcoin.