Internal Restructuring
Bitcoin mining giant MARA, formerly Marathon Digital Holdings, has laid off roughly 15% of its workforce as part of a sweeping strategic shift away from pure-play crypto mining and toward energy and digital infrastructure services.
According to a report by Blockspace, the layoffs affected full-time staff across multiple departments and may have included contractors. Anonymous sources cited in the report described the cuts as “going deep,” with some entire teams reportedly eliminated. The reductions occurred in rounds over two consecutive days.
In a memo to employees, CEO Fred Thiel framed the decision as part of MARA’s broader transformation.
“As we’ve been sharing through our recent announcements with Starwood and Exaion, we’re focusing the company in a new direction,” Thiel reportedly wrote in the memo.
Impacted employees will receive one month of paid leave and benefits through April 30, 13 weeks of severance, and a full payout for unused paid time off.
A MARA spokesperson emphasized the company’s long-term vision: “MARA remains focused on executing our strategic evolution from a pure-play bitcoin miner into an energy and digital infrastructure company. As our company evolves, so too must our operations and where we focus our resources.”
Financial Pressures
The layoffs follow MARA’s February acquisition of a majority stake in Exaion, the data center subsidiary of French energy giant EDF, and a deal with Starwood to repurpose approximately 1 gigawatt of bitcoin mining infrastructure for artificial intelligence workloads. These moves mark MARA’s first major steps into AI and high-performance computing services.
MARA operates the largest proprietary bitcoin mining fleet among publicly traded miners. Its 66.45 exahashes per second represent about 5% of the bitcoin network’s hashrate. However, the company reported a net loss of $1.3 billion in 2025, driven largely by fair-value adjustments on its bitcoin holdings. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the year was negative $330.8 million.
Like its peers, MARA’s bitcoin mining operations have been battered by a prolonged downturn in cryptocurrency markets, which has eroded the profitability of its rigs and forced miners to reassess their business models. Bitcoin’s dip below $70,000 left certain mining units uneconomical to operate, effectively turning once-lucrative machines into liabilities.
In March, MARA sold more than 15,133 BTC for $1.1 billion to retire $1 billion in convertible notes. The company joins peers such as Cipher Digital, Keel Infrastructure, and Bitdeer in divesting bitcoin treasuries to fund transitions into the AI sector.
FAQ ❓
- Why did MARA cut jobs? MARA confirmed ~15% layoffs, calling the move “strategic, not purely financial.”
- Which regions are impacted? The cuts hit multiple departments globally, with some entire teams eliminated.
- What support do employees get? Affected staff receive one month of paid leave, 13 weeks of severance, and PTO payouts.
- What’s MARA’s new focus? The miner is shifting toward AI and energy infrastructure via deals with Starwood and Exaion.