Marathon Explores Bitcoin Mining at Oilfields with Exxon, Aramco

Marathon Digital Holdings is reportedly in exploratory talks with Exxon Mobil and Saudi Aramco to colocate Bitcoin mining units at oilfields, utilizing flare gas for power. This potential partnership could significantly enhance the scale and legitimacy of gas-to-Bitcoin operations, converting waste methane into a monetized digital asset while addressing environmental, social, and governance (ESG) concerns.

While no formal announcements have been made, Marathon CEO Fred Thiel hinted at discussions with major energy companies during the company's May earnings call. Thiel mentioned that "chunks of flare-gas generation" will soon be available for Marathon's Bitcoin mining operations. This timing aligns with Aramco's May 2025 announcement of 34 new memorandums of understanding (MoUs) with U.S. firms and follows Exxon's earlier pilot with Crusoe Energy in North Dakota.

Marathon has already launched a 25-megawatt pilot in Texas using stranded shale gas, avoiding grid competition and qualifying for methane abatement credits. The company's mobile, plug-and-play infrastructure is designed for oilfields, converting flared methane into electricity for Bitcoin mining. Exxon and Crusoe demonstrated this process at scale, diverting 18 million cubic feet of gas per month and reducing CO₂-equivalent emissions by up to 63%.

Saudi Aramco has previously denied any intention to mine Bitcoin, labeling such reports as "false and inaccurate." However, Marathon's Thiel recently claimed the firm has 4–5 gigawatts of excess capacity, which could power tens of thousands of mining rigs. If even a small portion of this capacity were redirected, it would surpass the total output of many standalone crypto facilities.

Exxon, with its institutional memory and data from a two-year Crusoe pilot, could fast-track a new venture with Marathon, making the partnership less speculative. Regulatory momentum is also building, with a U.S. methane emissions fee under the Inflation Reduction Act set to kick in this year. This fee is pushing oil producers to find ways to reduce or monetize their emissions, making flare-gas mining an attractive option.

Additionally, bills have been approved in Texas to encourage Bitcoin mining using flare gas. Bitcoin miners, including Marathon, are facing compressed margins following the April 2025 halving. Marathon produced 950 BTC in May but must now pursue sub-$0.03/kWh energy sources to remain competitive. Flare gas, once a fringe energy input, could become a post-halving lifeline for the industry.

Despite the potential benefits, skepticism remains. No SEC filings, public agreements, or official comments confirm the Exxon or Aramco partnerships. Given Aramco’s past denial, any shift in stance would likely involve months of permitting, infrastructure build-out, and reputational calculus. If oil majors greenlight Bitcoin mining at the wellhead, the flare-gas conversation will shift from "can it work?" to "how fast can it scale?" Marathon, with its turnkey modules and Wall Street footprint, may be first in line to capitalize on this opportunity.