Marathon’s hydro expansion vs. Riot’s AI shift

Expansion and debt reduction

Marathon Digital prioritizes scale through low-cost energy and aggressive debt reduction. The company sold 15,133 Bitcoins to generate $1.1 billion, which funded the repurchase of approximately $1 billion in 0% convertible senior notes due in 2030 and 2031. This reduction in debt slashed convertible debt by 30% and saved the firm $88 million in cash. While Marathon expands its presence in Paraguay with a 7 EH/s hydro expansion, it maintains a massive treasury of over 52,000 BTC. During August 2025, the company produced 208 blocks, which implied 705 Bitcoins. During January, Marathon produced 1,084 units of BTC, a 58% increase compared to the same month the previous year. The firm reported a net profit of $808.2 million in Q2 2025 on revenue of $238.5 million, a 64% increase year-over-year. This growth supports their focus on digital energy and AI infrastructure. You should watch how these liquid assets stabilize their operations during market volatility.

Riot halts expansion to focus on AI infrastructure

Riot Platforms faces a significant shift in its Texas operations as it halts the 600 MW Phase II Bitcoin mining expansion at the Corsicana Facility. This decision to pivot toward AI and High-Performance Computing (HPC) workloads reduces the company’s expected 2025 total hash rate capacity from 46.7 EH/s to 38.4 EH/s. Riot engaged Altman Solon to conduct a feasibility assessment for using the remaining 600 MW of power capacity at Corsicana for AI/HPC uses. Although this delay slows Bitcoin growth, the company secured a $28 billion AI lease at Corsicana to bolster its diversification strategy. By the end of January, the Corsicana Facility reached a deployed hash rate of 15.7 EH/s, which marked an 11% increase from the previous month. Riot produced 527 Bitcoin in January, which marked the second consecutive month of increased production despite rising network difficulty. The company’s total deployed hash rate for January was 33.5 EH/s, while its total operating hash rate was 29.3 EH/s. Riot’s power credits saw a 250% increase in January, rising from $1.0 million in December to $3.6 million. Riot maintained low all-in power costs of 2.6 cents per kWh in August 2025, and the Corsicana facility reported power costs of 3.7 cents per kWh in January. Does the focus on AI infrastructure come at too high a cost to their mining dominance?

Comparing production efficiency and market position

Riot’s mining costs lag behind Marathon’s efficiency. Marathon reported energy costs of $33,735 per Bitcoin in Q2 2025, whereas Riot’s average cost per Bitcoin excluding depreciation hit $48,992 in the same period. Marathon’s revenue of $238.5 million in Q2 2025 outpaced Riot’s $153 million revenue during the same period. During August 2025, Marathon produced 705 Bitcoins, while Riot produced 477 Bitcoins. Riot’s Bitcoin production in January was 527 coins, whereas Marathon’s production in January 2025 was 1,084 units.

Marathon wins this comparison. Its hydro expansion in Paraguay and massive Bitcoin treasury provide a direct path to growth. Riot’s pivot to AI via the Corsicana lease provides diversification, but the halt of its 600 MW expansion creates a gap in its mining capacity. Riot’s Bitcoin holdings grew to include 5,784 Bitcoin acquired in December 2024, but they still trail Marathon’s massive accumulation. Riot’s August 2025 power costs of 2.6 cents per kWh cannot bridge the gap created by the higher operational costs of its Bitcoin mining.