MARA Holdings (MARA) Stock Surges on $1.5B Long Ridge Energy Acquisition

Key Highlights

• MARA Holdings reached an agreement to purchase Long Ridge Energy & Power LLC for approximately $1.5 billion in total consideration, debt included
• Transaction includes a 505 MW combined-cycle gas turbine facility located in Hannibal, Ohio, plus over 1,600 acres of industrial property
• MARA’s controlled power generation capacity will increase by approximately 65% following the acquisition
• Long Ridge facility is projected to generate around $144 million in annual adjusted EBITDA with operating costs below $15/MWh
• Site development for AI and advanced computing infrastructure scheduled to commence in early 2027

On April 29, MARA Holdings revealed its intention to purchase Long Ridge Energy & Power LLC from FTAI Infrastructure in a transaction valued at roughly $1.5 billion, which encompasses debt obligations.

Marathon Digital Holdings, Inc., MARA

Shares advanced approximately 1.7% during Thursday trading after the announcement, despite bitcoin experiencing downward price movement throughout the session.

Long Ridge operates a 505 MW combined-cycle gas turbine generation facility situated in Hannibal, Ohio. The property encompasses more than 1,600 contiguous acres of land zoned for industrial use, featuring established connections to electrical grid, water systems, fiber optic networks, and rail transportation.

This strategic acquisition will expand MARA’s portfolio of owned and controlled power generation assets by roughly 65%. Performance metrics from Long Ridge during the latter half of 2025 indicate the facility should deliver roughly $144 million in annualized adjusted EBITDA.

Operations at the facility maintain all-inclusive costs under $15 per megawatt-hour. This positions the plant among the most economically efficient power generation operations currently active.

Strategic AI Development Initiative

Management plans to transform the Ohio property into a premier AI and supercomputing facility. Construction activities for the initial phase of AI and critical information technology infrastructure are slated to begin during the first six months of 2027, with the first phase expected to become operational by mid-2028.

According to MARA, the Hannibal location has already attracted preliminary interest from several investment-grade artificial intelligence and critical IT customers.

Long-term expansion plans envision scaling total capacity at the location to as much as 600 gross MW by leveraging grid enhancement projects and additional on-site power generation capabilities.

Following completion of the Long Ridge transaction, MARA’s combined operational and pipeline capacity will total approximately 2.2 gigawatts distributed across PJM, ERCOT, SPP, and various international electricity markets.

Transaction Financing Structure

MARA has arranged financing through Barclays, which has committed to provide a senior secured bridge facility totaling up to $785 million.

Additionally, the company negotiated seller support regarding debt financing arrangements, necessary contract consents, and proposals for noteholders of Long Ridge’s outstanding 8.750% senior secured bonds maturing in 2032.

MARA intends to keep Long Ridge’s current management and operations personnel in place while continuing the plant’s existing electricity supply commitments to the PJM interconnection without disruption to end users.

Long Ridge maintains approximately 100 MMcfd of integrated natural gas supply and utilizes long-term hedging strategies, providing predictable revenue streams.

Deal closure is anticipated during the second half of 2026, subject to standard 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 a $8.50 price objective.

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