Key Highlights
- MARA secures 505 MW Ohio energy facility to diversify into artificial intelligence infrastructure.
- The $1.5 billion Long Ridge acquisition marks strategic shift beyond traditional cryptocurrency mining.
- Direct power ownership positions MARA for scalable AI computing opportunities ahead.
- Shares respond positively to $1.5B energy deal that transforms company’s operational model.
- Ohio power facility acquisition supports MARA’s transition into high-performance computing sector.
MARA Holdings (MARA) has taken a significant step into the energy sector by finalizing a $1.5 billion agreement to acquire Long Ridge Energy & Power. This transaction provides the Bitcoin mining company with ownership of a substantial natural gas generation facility located in Ohio. The strategic acquisition connects cryptocurrency operations with power generation assets and artificial intelligence computing ambitions.
Shares of MARA finished trading at $13.29, representing a 4.24% increase, following an intraday peak around $13.70 that couldn’t hold. Subsequently, after-hours trading saw the stock retreat to $13.05, declining 1.81%, as investor enthusiasm tapered. The price movement demonstrated initial market approval, though sustained momentum proved elusive.
Marathon Digital Holdings, Inc., MARA
The agreement with FTAI Infrastructure involves purchasing Long Ridge, with the total valuation encompassing debt obligations. The acquisition centers on a 505 megawatt combined-cycle natural gas generation facility situated in Hannibal, Ohio. Furthermore, the property encompasses more than 1,600 acres of adjacent land suitable for developing computing facilities.
Power Capacity Expansion Through Long Ridge
MARA projects the transaction will boost its controlled energy capacity by approximately 65%. As a result, combined capacity would climb to roughly 2.2 gigawatts following deal completion. This expanded scale provides MARA with enhanced oversight of energy resources and expenditure management.
The Long Ridge facility is anticipated to generate approximately $144 million in annualized adjusted EBITDA. MARA projects operating expenses under $15 per megawatt-hour. This cost structure establishes a more competitive foundation for power-intensive computing workloads.
MARA characterized the purchase as below current construction costs. Thus, the company views the transaction as more economical than developing comparable infrastructure independently. The arrangement also provides MARA with an operational power platform amid constrained energy markets.
Artificial Intelligence Infrastructure Drives Future Direction
MARA intends to initiate artificial intelligence and critical information technology infrastructure development at Long Ridge during early 2027. First-phase capacity deployment could commence by mid-2028, according to company projections. Consequently, the transaction emphasizes long-range infrastructure development over immediate mining capacity additions.
This strategic shift follows the April 2024 Bitcoin halving event that cut mining compensation in half. Subsequently, mining operators have pursued alternative revenue streams beyond block rewards. MARA’s power generation acquisition illustrates how major mining companies now pursue energy-supported computing services.
Competitors including Core Scientific, Iris Energy, and Hut 8 have previously entered high-performance computing markets. Nevertheless, MARA establishes a distinct advantage through direct power generation ownership. The transaction positions MARA with expanded capabilities for AI computing partnerships and reliable energy-derived revenue streams.
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