Anaerobic digestion can provide benefits not only from the perspective of renewable energy production but also in the form of fertilization effect and increased retention of C in soils after digestate application. This study consisted of two phases, where the first phase assessed the suitability of carbon-rich co-feedstocks for methane production via laboratory testing. The second phase assessed the balance and stability of C before and after anaerobic digestion by systematic digestate characterization, and by evaluating its carbon retention potential using a modeling approach. The results indicated that pyrolysis chars had a negligible effect on the methane production potential of cattle manure, while wheat straw expectedly increased methane production. Thus, a mixture of cattle manure and wheat straw was digested in pilot-scale leach-bed reactors and compared with undigested manure and straw. Although the total amount of C in the digestate was lower than in the untreated feedstocks, the digestion process stabilized C and was modeled to be more effective in retaining C in the soil than untreated cattle manure and wheat straw. In addition, digestion converted 23–27 % of the C into valuable methane, increasing the valorization of the total C in the feedstock. Considering anaerobic digestion processes as a strategy to optimize both carbon and nutrient valorization provides a more holistic approach to addressing climate change and improving soil health.