Marathon Digital is using its bitcoin mining power infrastructure to build an AI data center business, betting that energy assets will prove more valuable for compute workloads than for mining.
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Marathon Digital bets its 1.9 GW power portfolio on AI data center push
Marathon Digital is using its bitcoin mining power infrastructure to build an AI data center business, betting that energy assets will prove more valuable for compute workloads than for mining.
Marathon Digital Holdings Inc. is using its bitcoin mining power assets to expand into AI and high-performance computing infrastructure, Chief Executive Officer Fred Thiel said.
"This push into AI and high-performance computing infrastructure has been a multiyear process built on our experience aggregating low-cost power and data center capacity for bitcoin mining," Thiel said.
The company's acquisition of Long Ridge Energy & Power from FTAI Infrastructure gives Marathon 1.9 GW of power capacity across 1,600 acres in the PJM Interconnection, one of the largest US power grids. The site includes a 505 MW combined-cycle gas turbine and has a path to scale beyond 1 GW, Thiel said. Marathon also closed a majority stake in Exaion, expanding its energy sector presence.
The pivot comes as bitcoin mining profitability faces pressure from declining BTC prices and rising network difficulty. Marathon joins a growing list of miners — including TeraWulf, Hut 8 and Bit Digital — repurposing energy infrastructure for AI workloads. Morgan Stanley has initiated coverage of the sector using a framework that values miners as energy infrastructure assets rather than crypto pure plays.
A Sector-Wide Pivot
The shift from bitcoin mining to AI hosting is reshaping the industry. TeraWulf secured a data center development site in Kentucky this month designed to support more than 1 GW of AI and HPC capacity, with plans to operate 500 MW by 2028 and an additional 500 MW by 2030. Bit Digital exited bitcoin mining entirely in 2025 to focus on Ethereum staking and AI infrastructure through its WhiteFiber subsidiary.
Analysts project up to 20% of global bitcoin mining power could shift to AI workloads by the end of 2027, according to Morgan Stanley research. The investment bank initiated coverage of the mining sector this year with a valuation approach that prioritizes stable cash flows from data center operations over bitcoin price volatility.
Power Assets as a Competitive Moat
Marathon's strategy hinges on controlling low-cost power in an era of surging AI demand. "AI adoption is accelerating faster than power can be brought online to meet demand, creating a bottleneck on AI compute growth," Thiel said. The Long Ridge acquisition provides immediate access to interconnection infrastructure and physical footprint required to scale, he added.
Marathon shares have risen about 61% over the past three months, trading at US$14.38 as of May 25. The stock remains about 21% below the narrative fair value estimate of US$18.17, according to Simply Wall St. The company reported US$867.8 million in revenue alongside a net loss of US$2 billion, reflecting the capital intensity of its infrastructure buildout.
This article is for informational purposes only and does not constitute investment advice.
[1] Marathon Digital Bets Its Bitcoin Mining Power Assets Can Fuel AI Data Center Growth[2] TeraWulf secures data centre site to expand AI and HPC in U.S. Kentucky - 디지털투데이[3] MARA Charts New Course with Strategic Acquisitions, Setting Stage for Digital Infrastructure Dominance[4] What's Driving the Recent Volatility in Bit Digital (BTBT) and Crypto Miners - Kavout[5] Evaluating MARA Holdings (MARA) Valuation After A Strong Short-Term Share Price Rally - Yahoo Finance
