Could Marathon Digital Holdings be in exploratory talks with Exxon Mobil and Saudi Aramco to colocate Bitcoin mining units at oilfields, directly tapping flare-gas for power?
The timing aligns with Aramco’s May 2025 announcement of 34 new MoUs with U.S. firms and follows Exxon’s earlier pilot with Crusoe Energy in North Dakota.
The company’s mobile, plug-and-play infrastructure is tailor-made for oilfields. These portable modules convert otherwise flared methane into electricity, which is then used to mine Bitcoin, a process that Exxon and Crusoe demonstrated at scale by diverting 18 million cubic feet of gas per month and cutting CO₂-equivalent emissions by up to 63%.
However, Marathon’s Thiel recently claimed the firm has 4–5 gigawatts of excess capacity, a scale that could power tens of thousands of mining rigs. If even a small portion were redirected, it would surpass the total output of many standalone crypto facilities.
Behind the scenes, regulatory momentum is building. A U.S. methane emissions fee under the Inflation Reduction Act kicks in this year, pushing oil producers to find ways to reduce or monetize their emissions. Flare-gas mining offers a low-capex, high-upside path to compliance, particularly when paired with carbon offset markets.
At the same time, Bitcoin miners are grappling with compressed margins following the April 2025 halving. Marathon, one of the industry’s largest listed players, produced 950 BTC in May but must now aggressively pursue sub-$0.03/kWh energy sources to remain competitive. Flare-gas, once a fringe energy input, could become a post-halving lifeline.
Skepticism remains warranted. 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.
“You’re going to find is a mix of thermal, a mix of wind, solar and some flare gas. It really depends on the market and the partner.
We’re in discussions with some of the largest energy companies in the world that have a mix of all those energy sources and nuclear.
In regards to flare gas, there are a lot of gas assets around the world that are very applicable to this method…
And what I think you’ll see us doing more and more in the future is as we continue to work with especially oil and gas producers, you’ll see chunks of this flare gas type generation come online in different parts of the world where we’re able to deploy our Bitcoin mining operations, as a way to monetize that stranded gas. And we are super excited about those opportunities.”
—Fred Thiel, Marathon CEO
This story is developing. CryptoSlate will update as more details emerge.
