TLDR
- MARA Holdings saw shares climb 17% in after-hours trading following the announcement of a strategic alliance with Starwood Capital Group for AI data center development.
- The agreement involves transforming current MARA mining facilities into infrastructure for AI and enterprise cloud operations.
- The collaborative venture aims to achieve more than 1 gigawatt of IT capacity initially, with plans to surpass 2.5 gigawatts in the future.
- Fourth quarter results showed a net loss of $1.7B for MARA, with $1.5B attributed to digital asset fair value losses, while revenues declined 5.6% compared to the prior year.
- Despite the strategic shift, CEO Fred Thiel emphasized that Bitcoin “remains a core pillar” of the company’s long-term vision.
Shares of MARA Holdings experienced a dramatic surge of nearly 17% during Thursday’s after-hours session after the cryptocurrency mining company unveiled a significant partnership with Starwood Capital Group focused on AI data center development throughout its United States locations.
The share price reached $9.88 during extended trading hours immediately after the partnership disclosure.
Marathon Digital Holdings, Inc., MARA
According to the terms of the partnership, MARA will provide its current data center properties to the joint initiative. Starwood Digital Ventures — the specialized data center division of Starwood, which oversees more than $125 billion in managed assets — will take charge of design, development, customer acquisition, and operational management.
Both organizations will share responsibility for financing and managing the operations.
The initiative is projected to produce over 1 gigawatt of IT capacity during the first development stage. Long-term plans could push that figure beyond 2.5 gigawatts.
MARA will maintain the ability to contribute up to 50% equity in joint venture initiatives, enabling the company to preserve ownership stakes in assets that produce operational cash flow.
The AI Pivot
MARA’s current facilities were primarily designed for Bitcoin mining operations, but they possess something that’s becoming increasingly scarce and highly sought after: immediate access to substantial power resources.
With technology firms racing to obtain power sources for emerging AI infrastructure projects, these facilities have gained considerable market value.
Chief Executive Fred Thiel characterized 2026 as “an inflection point,” referencing both the Starwood collaboration and a separate agreement with Exaion to expand enterprise AI offerings.
This strategic direction places MARA among an expanding group of cryptocurrency miners converting their infrastructure for AI and high-performance computing applications. Bitfarms (BITF) recently underwent a rebrand to Keel Infrastructure as part of a comparable transition from mining operations toward HPC and AI data center services.
The industry-wide shift gained momentum following Bitcoin’s latest halving event that reduced mining rewards by fifty percent. Facing increased power expenses, declining bitcoin valuations, and intensifying market competition, profit margins throughout the mining industry have contracted significantly.
Bitcoin Still in the Picture
Despite the strategic transition, MARA maintains its commitment to cryptocurrency.
In his Q4 shareholder communication, Thiel explicitly stated that “Bitcoin remains a core pillar of MARA’s strategy,” emphasizing that the organization’s long-term belief in the asset category remains firm.
This affirmation accompanied challenging quarterly financial results.
MARA disclosed Q4 GAAP EPS of -$4.52, falling short of analyst expectations by $3.35. Revenues totaled $202.3 million, representing a 5.6% year-over-year decrease, and missed projections by $49 million.
The company posted a net loss of $1.7 billion for the quarter, contrasting sharply with net income of $528.3 million during Q4 2024. The majority of that deficit — $1.5 billion — resulted from losses related to the fair value of digital assets maintained on the company’s balance sheet.
Adjusted EBITDA registered at negative $1.5 billion, compared to a positive $796 million during the corresponding period last year.
MARA cited a 14% decrease in the average selling price of mined bitcoin during the quarter as the primary driver of revenue decline.
The company maintains its headquarters in Hallandale Beach, Florida.
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