Bitcoin News Today: EDF's HPC Ban Under MARA Deal Sparks France's Tech Sovereignty Fears: Report

Marathon Digital Holdings (MARA), a leading Bitcoin mining firm, has drawn regulatory and industry scrutiny after acquiring a 64% stake in Exaion, a subsidiary of Electricité de France (EDF), for $168 million, according to a Cryptobriefing report. The deal, announced in August, is part of MARA's broader strategy to expand into artificial intelligence (AI) and high-performance computing (HPC) infrastructure. However, the report reveals that the transaction could bar EDF from engaging in HPC activities for two years, raising questions about French technological and energy sovereignty.

The acquisition of Exaion — EDF's data center subsidiary — positions MARA to leverage its infrastructure for AI and cloud computing. The Cryptobriefing report highlights that EDF's exclusion from HPC activities post-deal could hinder its ability to compete in the rapidly evolving tech landscape. Analysts note that such restrictions may delay EDF's plans to develop AI capabilities, a sector where France has been pushing for greater autonomy amid global competition.

MARA's expansion into AI aligns with broader industry trends, as companies seek to diversify revenue streams amid Bitcoin's volatile price dynamics. Earlier this month, TeraWulf, another major miner, announced a 25-year joint venture with Google-backed Fluidstack to develop 168 MW of IT infrastructure in Texas, according to Yahoo Finance. TeraWulf's stock surged 17% following the announcement, while MARA shares fell nearly 3.5%, reflecting mixed market sentiment.

The Exaion deal underscores MARA's aggressive capital-raising efforts. In October, the firm secured $500 million in convertible senior notes to fund its Abernathy, Texas campus and HPC projects. This follows a $3 billion debt-financing plan in September, signaling its intent to scale infrastructure beyond Bitcoin mining. Meanwhile, TeraWulf's recent $500 million raise has bolstered its position as a key player in the AI-driven data-center race, according to Inkl, with shares trading near recent highs despite a post-announcement dip.

Industry observers remain cautious. Guggenheim analyst Jonathan Lee reiterated a "Hold" rating for MARA, citing an unclear strategic outlook despite the company's Bitcoin mining leadership and Exaion acquisition, according to Yahoo Finance. Lee noted that MARA's stock remains highly correlated with Bitcoin's price, which has declined 10% since hitting a peak above $125,000 earlier this month. In contrast, Cantor Fitzgerald raised its price target to $30, citing strong mining output and Bitcoin reserves, the largest among public companies.

The potential two-year HPC restriction on EDF also intersects with broader debates about corporate control over critical infrastructure. French President Emmanuel Macron's administration has emphasized energy and tech sovereignty, particularly as European rivals like Germany and the Netherlands invest heavily in AI and green data centers. EDF's limited capacity to enter HPC during this period could slow France's progress in these areas, while MARA gains access to a strategic asset in the U.S., the Cryptobriefing report notes.

As MARA navigates regulatory and market challenges, its dual focus on Bitcoin mining and AI infrastructure highlights the sector's evolving dynamics. With Bitcoin's halving event last year reducing mining rewards and increasing operational costs, firms are increasingly diversifying into higher-margin services. The Exaion deal, while contentious, exemplifies this trend, even as it raises geopolitical and economic questions for EDF and its stakeholders.

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