Marathon Digital Acquires 1,200-Acre Texas Site for Bitcoin Mining, AI
In brief
- Marathon Digital agreed to acquire 1,200+ acres in Matagorda County, Texas, 90 miles southwest of Houston
- Site provides 1 GW power access by October 2027, scaling to 2 GW by spring 2028
- Computing campus will host AI data centers and Bitcoin mining operations
- MARA shares surged 15% on announcement, up 54% year-to-date in 2026
- Acquisition brings Marathon's total power portfolio to nearly 4.8 gigawatts
Computing Campus Strategy
MARA plans to develop the property into a computing campus that could house both AI data centers and Bitcoin mining machines. The company is working alongside Starwood Digital Ventures on the project. This marks a significant pivot for a company historically known for mining Bitcoin — MARA is now chasing the same scarce electrical infrastructure that AI companies desperately need.
HIF USA, a synthetic-fuels developer that originally owned the site, will retain a minority stake once a computing tenant signs a lease. The deal reflects a broader industry trend: Bitcoin mining companies are transforming into infrastructure developers.
Power Portfolio Expansion
Once fully built out, the deal would push MARA's total power portfolio to nearly 4.8 gigawatts, including a previously announced acquisition of an Ohio power plant. This expansion signals MARA's confidence in sustained demand for compute capacity.
The stock market agrees. MARA shares are up more than 54% so far in 2026, driven by sizable AI compute demand and resulting investor enthusiasm. MARA has already invested more than $1.2 billion in Texas, making this acquisition part of a larger state-level infrastructure bet.
"This transaction advances our strategy of securing strategically located infrastructure assets capable of supporting high-performance compute and Bitcoin workloads. As demand for digital infrastructure continues to grow, we believe sites with access to reliable, scalable power will become increasingly valuable. This acquisition meaningfully expands our long-term development pipeline and strengthens our ability to support high-performance compute and maximize the value of that power over time." — Fred Thiel, MARA Chairman and CEO
Frequently asked questions
Why is MARA buying Texas land instead of just mining Bitcoin?
Bitcoin miners face intense competition for electrical capacity. By acquiring land with access to reliable, scalable power, MARA can lease capacity to AI data centers (which pay premium rates) while also running its own mining operations. This dual-use strategy maximizes the value of scarce power resources and diversifies revenue beyond mining alone.
How much power will the Texas site provide?
The Matagorda County property will have access to up to 1 gigawatt of electrical grid capacity by October 2027, scaling to 2 gigawatts by spring 2028. Once fully built out, it will contribute to MARA's total power portfolio of nearly 4.8 gigawatts.
What is HIF USA's role in this deal?
HIF USA, a synthetic-fuels developer, originally owned the site. Under the agreement, HIF will retain a minority stake in the property once a computing tenant (MARA or a partner) signs a lease. This structure lets HIF maintain upside while exiting its original fuel-production plans.
