MARA surges 17% after Starwood Capital deal to convert mining sites into AI data centres

Bitcoin mining company MARA Holdings announced a strategic partnership with global investment firm Starwood Capital Group to develop artificial intelligence-focused data centres across the United States.

The agreement, revealed on February 26, 2026, marks one of the clearest signs yet that crypto mining firms are repositioning themselves to capitalise on booming AI infrastructure demand while navigating tighter mining economics.

The joint venture will convert select Bitcoin mining facilities into hyperscale data centres capable of serving enterprise cloud and AI workloads.

The companies plan to deliver approximately 1 gigawatt (GW) of computing capacity in the near term, with expansion targets exceeding 2.5 GW over time.

MARA’s strategic pivot beyond bitcoin mining

MARA, historically known as one of the largest publicly traded Bitcoin miners, has faced mounting pressure following declining mining rewards, fluctuating crypto prices, and rising operational costs.

Its latest quarterly results showed a $1.7 billion net loss, largely driven by changes in Bitcoin valuations, underscoring the volatility tied to crypto-only business models.

The new partnership aims to diversify revenue streams by transforming energy-rich mining locations into flexible digital infrastructure hubs capable of supporting both crypto mining and high-performance computing.

“Our partnership with Starwood will allow us to turn power certainty into capacity certainty. Customers can run diverse workloads close to their data and users.” Fred Thiel, Chairman and CEO of MARA Holdings.

Under the agreement, MARA will contribute sites with strong power access and grid connectivity, while Starwood Digital Ventures, the firm’s data centre platform, will oversee design, development, tenant sourcing, and operations.

Industry analysts see this as a logical evolution. Bitcoin miners already operate large-scale facilities optimized for electricity consumption.

Why AI infrastructure is attracting crypto miners

Demand for AI computing capacity has surged as enterprises scale machine learning and generative AI applications. However, building new data centers from scratch often takes years due to permitting, power availability, and infrastructure costs.

MARA’s existing sites offer a shortcut.

Many mining facilities are located near inexpensive energy sources and established grid connections, assets increasingly valuable as technology companies struggle to secure reliable power for AI workloads.

According to the partnership announcement, the facilities will be designed to dynamically switch workloads between Bitcoin mining and AI computing depending on market demand.

“We are excited to partner with MARA… Data centers are the infrastructure responsible for driving the modern economy.” Barry Sternlicht, chairman and CEO of Starwood Capital Group.

This hybrid infrastructure model could become increasingly common as miners seek stable revenue sources beyond block rewards, especially after Bitcoin halving events reduce mining income.

Market reaction signals investor confidence

Investors reacted quickly to the announcement. MARA shares climbed approximately 17% in post-market trading, reflecting optimism that diversification into AI infrastructure could improve long-term earnings stability.

Market sentiment appears driven less by short-term financial results and more by forward-looking strategy.

Even amid declining revenues and mining output, shareholders viewed the AI expansion as a structural shift toward higher-margin digital infrastructure.

The move also aligns with a broader industry trend. Several publicly traded miners have begun repositioning themselves as energy-and-compute companies rather than pure crypto operators, leveraging their power access to compete in the AI boom.

Analysts note that access to energy, not chips or software, is emerging as one of the biggest bottlenecks in AI expansion, placing miners in an unexpectedly advantageous position.

What the partnership means for crypto investors

Instead of relying solely on Bitcoin price appreciation, firms are increasingly building diversified infrastructure businesses capable of generating recurring revenue.

The joint venture structure also allows MARA to retain up to 50% ownership in projects, positioning the company to benefit from long-term cash flows tied to enterprise computing demand.

While Bitcoin remains central to MARA’s operations, executives have framed AI infrastructure as a complementary growth engine rather than a replacement.

As AI demand accelerates globally, mining companies with scalable energy access may become key players in the next phase of digital infrastructure development.