MARA Holdings Soars 17% Following Starwood AI Data Center Partnership

Key Takeaways

• MARA Holdings experienced a 17% surge in after-hours trading following its announcement of a strategic partnership with Starwood Capital Group for AI data center development.
• Existing MARA mining locations will be transformed into advanced facilities serving enterprise cloud and AI clientele.
• The collaborative venture aims to achieve more than 1 gigawatt of initial IT capacity, with expansion plans targeting 2.5+ gigawatts.
• Fourth quarter results revealed a $1.7B net loss for MARA, with $1.5B attributed to digital asset fair value adjustments and revenues declining 5.6% compared to the previous year.
• Despite the strategic shift, CEO Fred Thiel affirmed that Bitcoin continues to be “a core pillar” of the company’s long-term vision.

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Shares of MARA Holdings experienced a significant after-hours rally on Thursday, climbing nearly 17% after the cryptocurrency mining company revealed a substantial partnership with Starwood Capital Group focused on AI data center development throughout its domestic locations.

The company’s shares reached $9.88 during extended trading hours immediately after the news broke.

Marathon Digital Holdings, Inc., MARA

The partnership structure involves MARA contributing its current data center properties into the joint venture. Starwood Digital Ventures — the specialized data center division of Starwood, which oversees more than $125 billion in total assets — will spearhead design work, construction activities, tenant acquisition, and ongoing facility management.

Both organizations will share financing responsibilities and operational duties for these developments.

Initial projections indicate the platform will produce over 1 gigawatt of IT capacity during its first development wave. Long-term planning envisions expansion exceeding 2.5 gigawatts as the partnership matures.

MARA maintains the flexibility to invest as much as 50% in individual joint venture initiatives, preserving its ownership stake in cash-generating operational assets.

Strategic Shift Toward AI Infrastructure

The infrastructure at MARA’s current locations was originally designed for Bitcoin mining operations, but these facilities possess an increasingly scarce and valuable asset: immediate access to substantial power infrastructure.

With technology giants competing intensely to lock down power resources for emerging AI systems, these mining locations have become unexpectedly attractive.

Chief Executive Fred Thiel characterized 2026 as representing “an inflection point,” highlighting both the Starwood collaboration and a separate arrangement with Exaion focused on expanding enterprise AI functionality.

This strategic direction places MARA within a broader industry movement of cryptocurrency miners converting their existing infrastructure toward AI and high-performance computing applications. Bitfarms (BITF) underwent a recent rebrand to Keel Infrastructure as part of a comparable transition from mining operations toward HPC and AI data center services.

This sectoral transformation gained momentum following Bitcoin’s latest halving event, which reduced mining rewards by fifty percent. Combined with increasing energy expenses, declining cryptocurrency valuations, and intensifying competitive pressures, profit margins throughout the mining industry have faced considerable compression.

Cryptocurrency Strategy Remains Active

Notwithstanding this infrastructure pivot, MARA maintains its commitment to cryptocurrency operations.

This strategic reassurance accompanied challenging fourth quarter financial results.

MARA disclosed Q4 GAAP EPS of negative $4.52, falling short of analyst consensus by $3.35. Quarterly revenue totaled $202.3 million, representing a 5.6% year-over-year decrease and missing projections by $49 million.

The quarter’s net loss reached $1.7 billion, contrasting sharply with net income of $528.3 million recorded in Q4 2024. Approximately $1.5 billion of this loss stemmed from fair value reductions in digital assets maintained on the corporate balance sheet.

Adjusted EBITDA registered negative $1.5 billion, compared against a positive $796 million figure from the corresponding period one year earlier.

MARA explained the revenue shortfall as resulting from a 14% decrease in the average valuation of bitcoin produced throughout the quarter.

The company maintains its headquarters in Hallandale Beach, Florida.

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