MARA Holdings acquired 64% of Exaion: strategies and challenges

American mining company MARA Holdings has completed the acquisition of 64% of shares in French data center operator Exaion. Financial details of the deal have not been disclosed, but previously Bloomberg reported that MARA offered the energy giant EDF's investment division $168 million for this stake.

Strategic Partnership

This deal not only strengthens MARA’s position in the data center market but also forms a strategic partnership with NJJ Capital, owned by French billionaire Xavier Niel. NJJ Capital acquires 10% of the miner’s financial division shares. The board of directors of Exaion will include representatives from MARA, EDF, and NJJ.

Missed Opportunities and Competition

In January, MARA lost its leadership in the total hash rate (a measure of total computing power) of Bitcoin among public companies, falling behind Bitdeer. The company also dropped to eighth place in terms of market capitalization, currently valued at $3 billion, while it was previously valued at $8.5 billion. Major competitors such as IREN and TeraWulf have significantly increased their positions through expansion in the AI sector.

Long-term Strategies

Amidst these changes, MARA continues to hold 53,250 BTC, equivalent to ~$3.6 billion, second only to Strategy in terms of corporate bitcoin reserves. However, competitors like Cango have already begun selling their bitcoin reserves in favor of participating in the AI market.

Legislative and Market Risks

Changes in the market also pose certain risks for MARA. The influence of global cryptocurrency regulation and the rapid development of AI technologies could dictate new rules of the game. In the Exaion board of directors, which will include Fred Thiel, MARA’s CEO, the companies will collectively work on a secure infrastructure for high-performance computing (HPC) and AI.

Conclusion

MARA’s deal with Exaion underscores its intention to strengthen its position in the new technology market but requires caution:

• Strengths: Expansion in the data center and AI segments.
• Risks: Loss of positions among competitors like Bitdeer, IREN, and TeraWulf.
• Opportunities: Joint initiatives with NJJ Capital.
• Threats: Regulatory environment changes and cryptocurrency market unpredictability.

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