May Marathon Digital Holdings be in exploratory talks with Exxon Mobil and Saudi Aramco to colocate Bitcoin mining items at oilfields, straight tapping flare-gas for energy?
Crypto Twitter thinks it’s potential, and if confirmed, the partnership might turbocharge the size and legitimacy of gas-to-Bitcoin operations, turning waste methane right into a monetized digital asset whereas addressing ESG considerations.
Marathon inventory pumper Cryptoklepto thinks, “It’s extra doubtless than not that no less than certainly one of these situations performs out within the subsequent 6 to 12 months for $MARA.”
Whereas not one of the firms have formally introduced a deal, Marathon CEO Fred Thiel hinted at “discussions with a few of the largest power firms on the planet” on Could’s earnings name, including that “chunks of flare-gas era” will quickly come on-line the place we’re in a position to deploy our Bitcoin mining operations.
The timing aligns with Aramco’s Could 2025 announcement of 34 new MoUs with U.S. corporations and follows Exxon’s earlier pilot with Crusoe Power in North Dakota.
Pilot-Confirmed, Able to Scale
Marathon isn’t ranging from scratch. In late 2024, it launched a 25-megawatt pilot in Texas utilizing stranded shale gasoline, avoiding grid competitors whereas qualifying for methane abatement credit. “The AI guys are ready to pay virtually any worth for power,” Thiel advised Reuters. “Bringing crypto-mining to the uncooked energy provide lets us keep away from that battle.”
The corporate’s cellular, plug-and-play infrastructure is tailored for oilfields. These moveable modules convert in any other case flared methane into electrical energy, which is then used to mine Bitcoin, a course of that Exxon and Crusoe demonstrated at scale by diverting 18 million cubic ft of gasoline per thirty days and chopping CO₂-equivalent emissions by as much as 63%.
Saudi Aramco has beforehand denied any intention to mine Bitcoin. In 2021, the corporate labeled such experiences “false and inaccurate.”
Nonetheless, Marathon’s Thiel just lately claimed the agency has 4–5 gigawatts of extra capability, a scale that would energy tens of 1000’s of mining rigs. If even a small portion had been redirected, it might surpass the whole output of many standalone crypto services.
Exxon, in the meantime, has the institutional reminiscence and knowledge from its two-year Crusoe pilot, which might make fast-tracking a brand new enterprise with Marathon much less speculative than it appears.
Why Now? A Confluence of Stress and Alternative
Behind the scenes, regulatory momentum is constructing. A U.S. methane emissions price underneath the Inflation Discount Act kicks on this yr, pushing oil producers to search out methods to scale back or monetize their emissions. Flare-gas mining provides a low-capex, high-upside path to compliance, notably when paired with carbon offset markets.
Additional, payments have been authorised in Texas particularly to encourage Bitcoin mining utilizing flare gasoline.
On the similar time, Bitcoin miners are grappling with compressed margins following the April 2025 halving. Marathon, one of many business’s largest listed gamers, produced 950 BTC in Could however should now aggressively pursue sub-$0.03/kWh power sources to stay aggressive. Flare-gas, as soon as a fringe power enter, might turn out to be a post-halving lifeline.
Skepticism stays warranted. No SEC filings, public agreements, or official feedback affirm the Exxon or Aramco partnerships. Given Aramco’s previous denial, any shift in stance would doubtless contain months of allowing, infrastructure build-out, and reputational calculus.
If oil majors greenlight Bitcoin mining on the wellhead, the flare-gas dialog will shift from “can it work?” to “how briskly can it scale?” Marathon, with its turnkey modules and Wall Road footprint, could also be first in line.
What to Watch
- Public filings or MoUs from Exxon, Aramco, or Marathon confirming pilot collaborations.
- Power regulator responses to flare-gas mining amid the methane price rollout.
- Q3 manufacturing updates: Marathon’s power prices and BTC yield per web site.
- Group pushback round noise and emissions from Marathon’s Texas flare web site.
“You’re going to search out is a mixture of thermal, a mixture of wind, photo voltaic and a few flare gasoline. It actually relies upon available on the market and the associate.
We’re in discussions with a few of the largest power firms on the planet which have a mixture of all these power sources and nuclear.
With regard to flare gasoline, there are plenty of gasoline belongings around the globe which are very relevant to this methodology…
And what I believe you’ll see us doing increasingly more sooner or later is as we proceed to work with particularly oil and gasoline producers, you’ll see chunks of this flare gasoline kind era come on-line in numerous elements of the world the place we’re in a position to deploy our Bitcoin mining operations, as a method to monetize that stranded gasoline. And we’re tremendous enthusiastic about these alternatives.”
—Fred Thiel, Marathon CEO
This story is creating. mycryptopot will replace as extra particulars emerge.
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