Could Marathon be readying to team with Exxon or Aramco on flare gas Bitcoin mining?

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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?

Crypto Twitter thinks it’s possible, and if confirmed, the partnership could turbocharge the scale and legitimacy of gas-to-Bitcoin operations, turning waste methane into a monetized digital asset while addressing ESG concerns.

Marathon stock pumper Cryptoklepto thinks, “It is more likely than not that at least one of these scenarios plays out in the next 6 to 12 months for $MARA.”

While none of the companies have formally announced a deal, Marathon CEO Fred Thiel hinted at “discussions with some of the largest energy companies in the world” on May’s earnings call, adding that “chunks of flare-gas generation” will soon come online where we’re able to deploy our Bitcoin mining operations.

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.

Pilot-Proven, Ready to Scale

Marathon isn’t starting from scratch. In late 2024, it launched a 25-megawatt pilot in Texas using stranded shale gas, avoiding grid competition while qualifying for methane abatement credits. “The AI guys are prepared to pay almost any price for energy,” Thiel told Reuters. “Bringing crypto-mining to the raw power supply lets us avoid that fight.”

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%.

Saudi Aramco has previously denied any intention to mine Bitcoin. In 2021, the company labeled such reports “false and inaccurate.”

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.

Exxon, meanwhile, has the institutional memory and data from its two-year Crusoe pilot, which could make fast-tracking a new venture with Marathon less speculative than it seems.

Why Now? A Confluence of Pressure and Opportunity

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.

Further, bills have been approved in Texas specifically to encourage Bitcoin mining using flare gas.

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.

What to Watch

Public filings or MoUs from Exxon, Aramco, or Marathon confirming pilot collaborations.
Energy regulator responses to flare-gas mining amid the methane fee rollout.
Q3 production updates: Marathon’s energy costs and BTC yield per site.
Community pushback around noise and emissions from Marathon’s Texas flare site.

“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.