Key Highlights
- MARA secures 505 MW Ohio energy facility to diversify into AI infrastructure operations.
- The $1.5B Long Ridge acquisition reflects strategic shift beyond traditional Bitcoin mining revenue.
- Direct power ownership positions MARA for high-performance computing expansion opportunities.
- Stock price responded to $1.5B energy asset purchase with initial gains followed by consolidation.
- Company aims to leverage power plant for AI computing services starting mid-2028.
MARA Holdings (MARA) has taken a significant step into energy asset ownership with its $1.5 billion agreement to acquire Long Ridge Energy & Power. The transaction provides the Bitcoin mining company with direct ownership of a substantial natural gas power facility located in Ohio. Furthermore, this strategic acquisition connects cryptocurrency mining operations with power generation and artificial intelligence computing services.
Shares of MARA closed at $13.29, representing a 4.24% gain, following intraday strength that peaked near $13.70 before retreating. Nevertheless, after-hours trading saw the stock decline to $13.05, marking a 1.81% drop as investor enthusiasm tempered. The price movement demonstrated initial market approval, though subsequent activity remained subdued.
Marathon Digital Holdings, Inc., MARA
The transaction involves purchasing Long Ridge from FTAI Infrastructure, with the purchase price covering existing debt obligations. The facility comprises a 505 MW combined-cycle natural gas power generation plant situated in Hannibal, Ohio. Beyond that, the property encompasses more than 1,600 adjacent acres available for developing future computing facilities.
Power Capacity Expansion Through Long Ridge
MARA projects the transaction will boost its owned-and-controlled capacity by approximately 65%. As a result, combined capacity would climb to roughly 2.2 GW following deal completion. This expanded scale provides MARA with enhanced control over energy procurement and operational expenditures.
The Long Ridge facility also delivers an anticipated annualized adjusted EBITDA of approximately $144 million. MARA projects operational expenses under $15 per megawatt-hour. This cost structure provides the organization with a more competitive foundation for energy-intensive computing activities.
The organization characterized the purchase as being priced below replacement value. Accordingly, MARA views the facility as more economical than constructing comparable infrastructure independently. The transaction also delivers an immediately operational power platform within a constrained energy marketplace.
Artificial Intelligence Computing Drives Strategic Direction
MARA intends to commence AI and mission-critical IT infrastructure development at Long Ridge during the first half of 2027. Beginning capacity could launch by mid-2028, according to the company’s projected schedule. Consequently, the acquisition emphasizes long-range infrastructure development rather than near-term mining capacity additions.
This strategic pivot follows the April 2024 Bitcoin halving which diminished mining rewards substantially. Consequently, mining enterprises have pursued more robust revenue channels beyond block rewards. MARA’s power generation acquisition demonstrates how major miners are now targeting energy-supported computing services.
Core Scientific, Iris Energy, and Hut 8 have previously moved into high-performance computing markets. Nevertheless, MARA establishes a distinctive competitive position through direct power generation ownership. The purchase provides MARA with an expanded platform for AI computing agreements and consistent power-related revenue streams.
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