MARA CEO Fred Thiel says scarce electricity can produce far higher returns when directed to artificial intelligence than to bitcoin mining. The company still plans to mine bitcoin where low-cost or surplus energy makes the economics attractive.
Key Takeaways
MARA’s Fred Thiel said that AI earns more per electron than bitcoin mining.MARA targets 1 GW near-term and 2.5 GW later, showing power assets now drive miner value.MARA will keep mining cheap energy as Hut 8’s $19.6B AI leases shape the industry’s next move.Power, not mining machines, is becoming the defining asset in the Bitcoin mining industry.
MARA CEO Fred Thiel said electricity used for artificial intelligence infrastructure can generate substantially better returns than the same power devoted to bitcoin mining. That gap is pushing miners to recast themselves as data center developers.
The shift reflects tougher mining economics. Bitcoin’s scheduled halvings reduce the reward paid for each block, while electricity remains the industry’s largest operating expense. Thiel said miners must control power directly or work closely with utilities to stay competitive.
MARA Builds Around Scarce PowerMARA began buying sites where it had previously hosted mining equipment in late 2023 and early 2024, often below replacement cost, Thiel said. By the end of 2024, it owned about 70% of the infrastructure supporting its operations.
Still, Thiel rejected the idea that AI will replace mining across MARA’s portfolio.
“Bitcoin is a great way to optimize electrons, even in a data center-centric world,” he said. 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 Secure AI RevenueThe comparison is not exact. AI facilities require more capital, complex cooling systems, and firm delivery schedules. They also face local opposition over electricity use, water, and noise.
Thiel said those concerns often stem from limited information. Yet his broader conclusion was blunt:
“At the heart of it, though, it’s an issue of energy and power.”
For miners with grid connections and developable land, bitcoin may increasingly become one use for electricity rather than the only one.
