Marathon Digital Holdings has signed an agreement with Starwood Property Trust to convert a portfolio of its U.S. Bitcoin mining sites, excluding existing joint ventures, into hyperscale data center campuses. Development will occur on a site-by-site basis, targeting locations with low-cost power and strong grid access.

By pairing its energy-heavy infrastructure with Starwood’s development and operating capabilities, Marathon aims to shift from pure hash rate exposure to power-to-compute monetization. The campuses are intended to flex compute capacity between Bitcoin mining and enterprise AI workloads based on pricing and demand.

Shares closed at $8.45 in regular trading before climbing approximately 14% to near $9.62 in after-hours trading, reflecting investor enthusiasm for the strategic pivot. Extended trading saw highs near $9.90, marking roughly a 16% gain from the prior session’s close.

Execution risks remain, as no hyperscale or enterprise leases have been signed and there is no immediate AI revenue. Mining remains the primary cash flow driver, making the long-term impact dependent on securing AI tenants and managing conversion timelines.