MARA CEO Fred Thiel says AI data centers generate more revenue than Bitcoin mining. Here's why the company is expanding into AI in the future
MARA Holdings, the fourth largest Bitcoin holding firm, is preparing for a future that extends beyond Bitcoin mining. CEO Fred Thiel says AI data centers generate far more revenue per unit of electricity than Bitcoin mining.
The comments signal that the company plans to gradually transform part of its energy infrastructure.
Speaking in a recent interview with journalist Natalie Brunell, Thiel explained that the economics of AI infrastructure have become increasingly attractive for companies with access to large amounts of power.
"AI companies pay much more per electron compared to mining," Thiel said, highlighting that electricity has become one of the technology sector's most valuable resources.
MARA currently controls more than four gigawatts (GW) of energy capacity, giving it one of the largest power portfolios among publicly traded Bitcoin miners. Rather than abandoning mining altogether, the company plans to use that infrastructure to serve both industries.
According to Thiel, building a Bitcoin mining facility costs roughly $1 million per megawatt, including computing equipment and infrastructure.
By comparison, an AI data center requires $10 million to $15 million per megawatt for infrastructure alone. While the upfront investment is significantly higher, AI facilities also generate much stronger returns, making them increasingly attractive to investors and lenders.
The growing demand for AI has created new opportunities for companies that already have access to large amounts of power.
Instead of shutting down its mining operations, MARA is adopting what it calls "mullet data centers."
Under this strategy, existing Bitcoin mining operations continue generating revenue while sections of the same facilities are gradually converted into AI computing centers. This allows the company to avoid long periods of downtime that would normally accompany a full infrastructure overhaul.
The approach shows an overall shift taking place across the mining industry. Following the 2024 Bitcoin halving, mining rewards were cut in half, squeezing profit margins for many operators.
The company has also partnered with Starwood Capital to bring institutional real estate investment into future AI infrastructure projects, reducing the need to rely solely on Bitcoin sales to finance expansion.
Another reason behind MARA's pivot is financing. Thiel noted that banks are generally more willing to finance AI infrastructure than Bitcoin mining projects because AI data centers are backed by long-term contracts with enterprise customers and large technology companies.
That trend is already visible across the industry. Major financial institutions, including Bank of America, Morgan Stanley, JPMorgan Chase, SMBC, and MUFG, have helped arrange billions of dollars in financing for AI data center projects linked to companies such as Oracle and OpenAI.
MARA's expansion into AI does not mean the company is abandoning Bitcoin. Earlier this year, the company sold approximately 20,880 BTC, raising around $1.5 billion to improve liquidity and retire outstanding debt.
Thiel noted that the sale was part of MARA's broader cash management strategy rather than a loss of confidence in Bitcoin.
"We're not a digital asset treasury company," Thiel said.
He added that Bitcoin remains an important balance sheet asset despite not generating yield on its own.
Even after the sale, MARA still holds 38,689 BTC, valued at roughly $2.3 billion, making it the fourth-largest publicly traded corporate holder of Bitcoin.
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