MARA Holdings CEO Fred Thiel has made the quiet part loud: AI data centers make more money per unit of electricity than Bitcoin mining. And rather than just acknowledging that reality, his company is restructuring its entire business around it.
The result is a partnership with Starwood Capital Group to repurpose MARA’s existing mining sites into AI and high-performance computing infrastructure, initially targeting roughly 1 GW of capacity with plans to scale beyond 2.5 GW. MARA’s stock surged 17% on the news.
The math behind the pivot
AI workloads can generate approximately $25 per kWh, according to industry figures cited in MARA’s strategic communications. That figure dramatically outpaces what Bitcoin mining returns per unit of power. Thiel put it bluntly: “AI companies pay much more per electron compared to mining.”
MARA controls over 4 GW of energy capacity, making it one of the largest power portfolios in the digital infrastructure space.
The company has even coined a term for its transitional model: “mullet data centers.” Bitcoin mining continues running on existing hardware while sections of each facility get converted to handle AI workloads, keeping revenue flowing during the buildout phase rather than going dark for a full retrofit.
Why MARA is selling Bitcoin to fund the shift
MARA recently sold around 20,000 BTC to repay debt and bonds. The Starwood Capital partnership, announced on February 26, 2026, brings institutional real estate capital to the table. Thiel has framed electricity, which he calls “the biggest cost item,” as commanding a premium when directed toward AI computation that the mining business cannot match.
What this means for investors
The 17% stock price jump following the Starwood announcement reflects a market reacting to MARA’s shift. AI data center revenue typically comes through long-term contracts with enterprise customers, meaning more predictable cash flows compared to mining stocks, where profitability swings with Bitcoin’s price, network difficulty adjustments, and halving events.
The risk is execution. Converting mining sites to AI-ready facilities requires significant capital expenditure, new technical expertise in cooling and networking, and the ability to land enterprise customers. Selling 20,000 BTC to pay down debt also means MARA has less exposure to any potential Bitcoin price appreciation. Investors watching this space should pay close attention to MARA’s ability to secure long-term power purchase agreements and binding customer contracts, not just announced capacity targets.