MARA CEO Fred Thiel says electricity directed into artificial intelligence can generate substantially better returns than the same power devoted to bitcoin mining. MARA still plans to mine where energy is free, stranded or unusually cheap, even as it rebuilds its business around power assets.
Power, not machines, is becoming the defining asset in bitcoin mining. MARA CEO Fred Thiel said electricity used for artificial intelligence infrastructure can generate substantially better returns than the same power devoted to mining, a gap pushing miners to recast themselves as data center developers.
Thiel drew the comparison in a July 23 interview with Natalie Brunell: "You get a lot more money per electron if you’re doing it for AI" than for bitcoin mining.
Halvings and power bills tighten the mining case
Behind the shift sit tougher mining economics. Bitcoin's scheduled halvings reduce the block reward paid for each block, while electricity remains the industry's largest operating expense. Therefore miners must control power directly or work closely with utilities to stay competitive, Thiel said.
MARA bought its sites, then went after energy
Thiel said the company began buying sites where it had previously hosted mining equipment in late 2023 and early 2024, often below replacement cost. By the end of 2024 it owned about 70% of the infrastructure supporting its operations.
Energy assets came next. MARA's platform with Starwood targets about 1 gigawatt of near-term computing capacity, with a path beyond 2.5 GW. It also agreed in July to acquire a Texas site with access to roughly 2 GW of power for digital infrastructure.
Yet Thiel rejected the idea that AI will replace mining across MARA's portfolio. Mining remains useful in areas with free, stranded or unusually cheap energy because it can absorb power that might otherwise go unused.
Miners race to sign AI leases
MARA's strategy mirrors a wider industry migration. TeraWulf signed a 20-year lease with Anthropic for a 401 MW Kentucky campus expected to generate about $19 billion in contracted revenue. CleanSpark secured a 20-year, $6.6 billion lease for its Sandersville, Georgia, site.
Hut 8 has fully contracted its 1 GW Beacon Point campus through two 15-year leases worth $19.6 billion during their base terms. IREN raised its 2026 annualized AI Cloud revenue target above $4 billion after signing $2.8 billion of new contracts.
However, the comparison is not exact. AI facilities require more capital, complex cooling systems, and firm delivery schedules, and they also face local opposition over electricity use, water, and noise. Thiel said those concerns often stem from limited information.
Source: Bitcoin News
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