MARA Expands Into AI Infrastructure With Starwood Capital

Bitcoin miner MARA Holdings is expanding into artificial intelligence and hyperscale data infrastructure through a new partnership with Starwood Capital Group, aiming to deliver up to 2.5 gigawatts of IT capacity.

Key Takeaways

• MARA Holdings has partnered with Starwood Capital Group and its platform Starwood Digital Ventures to convert select sites into AI and enterprise ready data centers.
• The joint platform targets 1 gigawatt of near term IT capacity, with plans to scale beyond 2.5 gigawatts.
• MARA shares jumped about 17% in after hours trading following the announcement.
• The move comes as Bitcoin miners increasingly pivot toward AI and high performance computing infrastructure.

What Happened?

MARA Holdings Inc. announced a strategic agreement with Starwood Capital Group and its dedicated data center development arm, Starwood Digital Ventures, to transform parts of MARA’s energy rich portfolio into next generation digital infrastructure.

The companies plan to jointly develop, finance, and operate hyperscale, enterprise, and AI capable data center projects, leveraging MARA’s access to low cost energy and Starwood’s expertise in large scale real estate and digital infrastructure investment.

A Strategic Pivot Toward AI and Hyperscale

Under the agreement, Starwood Digital Ventures will lead the design, development, tenant sourcing, construction, and facility operations for the projects. Starwood, which manages more than $125 billion in assets, will provide investment expertise to improve project level economics. Its digital ventures platform operates a 94 person team with experience spanning more than 10 gigawatts of data center capacity.

MARA will contribute sites with strong interconnection positions and scalable access to power. The companies expect to deliver about 1 gigawatt of near term IT capacity, with a pathway to expand beyond 2.5 gigawatts.

Importantly, the campuses will be designed to support both Bitcoin mining and AI compute workloads. This structure allows MARA to shift computing power depending on market conditions and customer demand, preserving economics across cycles.

Fred Thiel, MARA’s Chairman and CEO said:

“

MARA’s power rich sites give customers what they need most: predictable access to energy at scale. Our partnership with Starwood will allow us to turn that power certainty into capacity certainty, so customers can run diverse workloads close to their data and users. This joint venture structure also gives us a more capital efficient way to accelerate the buildout of digital infrastructure across our portfolio. Together, this partnership will accelerate our expansion into high performance computing and advance our strategy to build an integrated, energy backed digital infrastructure platform.

Fred ThielChairman and CEO – MARA

Barry Sternlicht, Chairman and CEO of Starwood Capital, said:

“

Data centers are the infrastructure responsible for driving the modern economy, and our partnership with MARA expands our opportunities to continue investing in this sector.

Barry SternlichtChairman and CEO – Starwood Capital

Anthony Balestrieri, Managing Director and Chief Executive Officer for Starwood Digital Ventures, added that the team will focus on delivering scale and performance with an emphasis on community conscious infrastructure.

Earnings Pressure Adds Context

The announcement came alongside MARA’s fourth quarter earnings. The company reported a $1.7 billion net loss, largely driven by unrealized writedowns on its Bitcoin holdings. Quarterly revenue totaled $202 million, down 6% from a year earlier.

Following the news, MARA shares rose about 17% in after hours trading, reflecting investor optimism around the company’s expansion into AI focused infrastructure.

Industry Trend Gains Momentum

MARA’s pivot reflects a broader trend across the mining sector. Companies that once focused solely on Bitcoin production are increasingly repurposing their energy assets for AI and high performance computing workloads.

Some early movers, including IREN Limited, TeraWulf Inc., and Cipher Mining Inc., have seen their market capitalizations outperform MARA’s despite producing less mining hash power. Meanwhile, activist firm Starboard Value LP has taken a significant stake in Riot Platforms Inc., pushing the Texas based miner to accelerate its own data center strategy.

MARA’s Broader Infrastructure Base

Formerly known as Marathon Digital Holdings, MARA operates a multi state and international digital asset compute portfolio. The company manages roughly 265,000 operational miners and develops proprietary technologies including 2PIC by MARA immersion cooling, MARA SLIPSTREAM, MARAFW, MARATools, ANDURO, and ALYS.

By combining its energy footprint with flexible compute infrastructure, MARA is positioning itself at the intersection of energy and digital services.

CoinLaw’s Takeaway

In my view, this is one of the clearest signs yet that the line between Bitcoin mining and AI infrastructure is fading. I have seen many miners struggle with revenue swings tied to Bitcoin price volatility. By building facilities that can serve both mining and AI workloads, MARA is trying to smooth those cycles and attract a different class of customers. I believe this flexible model could become the standard for large scale energy backed compute companies over the next few years.

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