Key Highlights
- Marathon Digital Holdings agreed to purchase Long Ridge Energy & Power LLC for approximately $1.5 billion in total consideration
- The transaction includes a 505 megawatt gas-fired power facility located in Hannibal, Ohio, plus over 1,600 acres
- MARA’s controlled power generation capacity will increase by approximately 65% through this deal
- The facility is projected to generate around $144 million in annual adjusted EBITDA with sub-$15/MWh costs
- Construction on AI and advanced computing infrastructure is scheduled to commence during H1 2027
On April 29, MARA Holdings revealed its agreement to purchase Long Ridge Energy & Power LLC from FTAI Infrastructure in a transaction valued at roughly $1.5 billion, debt included.
Marathon Digital Holdings, Inc., MARA
Shares gained approximately 1.7% in Thursday trading despite bitcoin experiencing downward pressure throughout the session.
The acquired property features a 505 MW combined-cycle natural gas turbine facility situated in Hannibal, Ohio. The location encompasses more than 1,600 acres of contiguous, industrially zoned property with established connections to electrical grid, water resources, fiber optics, and railway systems.
This acquisition is projected to expand MARA’s directly controlled power generation capabilities by roughly 65%. Projections based on Long Ridge’s operational metrics from the latter half of 2025 suggest the asset will deliver around $144 million in yearly adjusted EBITDA.
Operating expenses for the facility remain below $15 per megawatt-hour on an all-in basis. This positions it as one of the more economically efficient power generation assets currently operating.
Artificial Intelligence Development Strategy
Marathon Digital plans to transform the Hannibal location into a premier AI and high-performance computing facility. Initial construction activities for AI and mission-critical IT infrastructure are slated to begin during the first six months of 2027, with projected operational readiness by the middle of 2028.
According to the company, the Ohio property has already attracted significant attention from several investment-grade entities in the AI and critical IT sectors.
Looking ahead, MARA envisions opportunities to scale the site’s capacity to as much as 600 gross MW through grid infrastructure enhancements and additional on-site generation capabilities.
Following the Long Ridge integration, Marathon Digital’s combined operational and pipeline capacity will total approximately 2.2 gigawatts spanning PJM, ERCOT, SPP, and global markets.
Transaction Funding Structure
Marathon Digital arranged financing through Barclays, securing a commitment for a senior secured bridge facility worth up to $785 million.
Additionally, the company obtained seller support for debt arrangements, contractual approvals, and noteholder proposals connected to Long Ridge’s existing 8.750% senior secured bonds maturing in 2032.
The organization intends to keep Long Ridge’s current operational personnel and continue supplying electricity to the PJM regional grid without expected disruption to end users.
Long Ridge maintains roughly 100 MMcfd of integrated natural gas supply and utilizes long-term hedging strategies that provide predictable revenue streams.
Completion of the deal is anticipated during the second half of 2026, subject to regulatory clearances including Hart-Scott-Rodino antitrust review and Federal Energy Regulatory Commission authorization.
The latest Wall Street analyst rating on MARA stock stands at Sell, with an $8.50 price objective.
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