French officials have reportedly tapped telecommunications billionaire Xavier Niel to acquire a stake in the Électricité de France (EDF) subsidiary, Exaion, in an attempt to mollify sovereignty concerns over U.S. bitcoin miner MARA (NASDAQ: MARA) taking a controlling stake in the company, according to the French crypto outlet The Big Whale.
Last year, MARA signed a deal with the EDF to pay approximately $168 million in cash for a 64% controlling interest in Exaion. The agreement includes an option to increase ownership to 75% by 2027 for an additional $127 million, as well as a non-compete that would bar the EDF from engaging in commercial bitcoin mining or data center operations for two years after the deal’s close.
The French Treasury originally greenlit the deal, only for officials to stall it for additional review a week later, according to The Big Whale’s reporting. The French government raised sovereignty concerns regarding the country’s energy infrastructure with regard to MARA’s controlling stake.
According to Big Whale, French officials are seeking to “Frenchify” the operation by involving Niel, the founder of Iliad Group, to address criticism regarding foreign control of strategic assets. This move aims to balance the capital structure with a domestic investor. The outcome of Niel’s potential involvement remains under negotiation.
One concern revolves around Exaion’s ability to stabilize the power grid using flexible computing loads like Bitcoin mining. Flush as it is with nuclear power, France currently faces chronic electricity overcapacity estimated at 130 TWh annually, and the government views flexible consumption as critical for managing these surpluses.
MARA’s non-compete clause complicates concerns over the nation’s ability to employ bitcoin mining to soak up excess electricity. Cannes Mayor David Lisnard criticized the restriction, arguing it prevents the state utility from monetizing its own energy abundance, per his X post. He stated the deal allows a foreign operator to capture the value of taxpayer-funded surpluses.
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Header image by Ministère français de l’Enseignement supérieur et de la recherche via Creative Commons.
