Could Marathon Team Up With Exxon or Aramco to Mine Bitcoin From Associated Gas?
Could Marathon Digital Holdings begin preliminary talks with Exxon Mobil and Saudi Aramco about placing bitcoin mining rigs in oil fields, using flare gas to generate electricity directly?
Crypto Twitter believes this is entirely possible, and if confirmed, such a partnership could significantly expand the scale and legitimacy of gas-to-bitcoin processes, turning waste methane into a monetized digital asset while addressing ESG issues.
Investor Cryptoklepto, who is actively investing in Marathon shares, suggests: “Most likely, at least one of these scenarios will play out over the next 6-12 months for $MARA.”
While neither company has officially announced a deal, Marathon CEO Fred Thiel hinted at “talks with some of the largest energy companies in the world” in his May earnings call, adding that “flare generation chunks” will soon be coming online to allow us to ramp up our bitcoin mining operations.
The timing coincides with Aramco's May 2025 announcement of 34 new memorandums of understanding with U.S. entities and follows Exxon's earlier pilot project with Crusoe Energy in North Dakota.
Pilot tested, ready for scaling
Marathon isn’t starting from scratch. In late 2024, the company launched a 25-megawatt pilot plant in Texas using shale gas, avoiding grid competition and qualifying for methane emissions credits. “The AI guys are willing to pay almost any price for energy,” Thiel told Reuters. “Bringing cryptocurrency mining to raw electricity allows us to avoid that competition.”
The company’s mobile, ready-to-use infrastructure is specifically designed for oil fields. These portable modules convert methane that would otherwise be flared into electricity, which is then used to mine Bitcoin, as demonstrated by Exxon and Crusoe, diverting 18 million cubic feet of gas per month and reducing CO₂-equivalent emissions by 63%.
Saudi Aramco has previously denied any intentions to mine Bitcoin, calling such claims “false and incorrect” in 2021.
However, Marathon’s Thiel recently said the company has 4-5 gigawatts of excess capacity, a scale that could power tens of thousands of mining rigs. If even a small fraction of that capacity were repurposed, it would outpace the combined output of many independent crypto businesses.
At the same time, Exxon has institutional memory and data from its two-year pilot with Crusoe, which may make a quick move to pursue a new joint venture with Marathon less speculative than it might seem.
Why Now? Pressure and Opportunity
Behind the scenes, regulatory momentum is building. The U.S. methane emissions tax under the Inflation Reduction Act goes into effect this year, prompting oil producers to find ways to reduce or monetize their emissions. Flare gas production offers a low-cost, high-return route to compliance, especially when combined with carbon offset markets.
Additionally, Texas has passed bills specifically aimed at incentivizing Bitcoin mining using flare gas.
At the same time, Bitcoin miners are facing shrinking margins after the halving in April 2025. Marathon, one of the largest players in the market, mined 950 BTC in May but must now actively seek energy sources below $0.03/kWh to remain competitive. Flare gas, once considered a secondary energy source, could be a lifeline after the halving.
Skepticism remains warranted. No SEC filings, public agreements, or official comments confirm Exxon and Aramco are partnering. Given Aramco’s past denials, any change in position would likely take months to secure permits, build infrastructure, and manage reputational risks.
If major oil companies approve wellhead bitcoin mining, the flare gas conversation will shift from “can it work?” to “how quickly can it scale?” Marathon, with its ready-made modules and Wall Street presence, could be first in line.
What to watch for
- Public filings or memoranda of understanding from Exxon, Aramco or Marathon confirming pilot collaboration.
- Energy regulators react to flare gas use amid methane charges.
- Q3 Production Update: Energy Costs and BTC Yield at Each Marathon Site
- Public outcry over noise and emissions from Marathon flare in Texas.
“You'll find a mix of thermal, wind, solar and some flare gas. It really depends on the market and the partner.
We are in talks with some of the largest energy companies in the world that combine all of these energy sources and nuclear energy.
As for flare gas, there are many gas assets around the world that are suitable for this method…
And I think
Source: cryptonews.net
