Key Highlights
- MARA Holdings finalized an agreement to purchase Long Ridge Energy & Power LLC for approximately $1.5 billion, with assumed debt included
- The transaction secures a 505 MW combined-cycle gas turbine facility located in Hannibal, Ohio, along with more than 1,600 acres of industrial land
- MARA’s owned power generation capacity increases by approximately 65% through this strategic acquisition
- Long Ridge projects annual adjusted EBITDA of around $144 million with operating expenses below $15/MWh
- Initial AI and critical infrastructure development at the facility will commence during the first half of 2027
On April 29, MARA Holdings revealed its decision to purchase Long Ridge Energy & Power LLC from FTAI Infrastructure in a deal valued at roughly $1.5 billion, with assumed debt factored into the total.
Marathon Digital Holdings, Inc., MARA
Shares climbed approximately 1.7% during Thursday’s trading session after the announcement, despite bitcoin experiencing downward pressure throughout the day.
The acquired asset consists of a 505 MW combined-cycle gas turbine power generation facility situated in Hannibal, Ohio. The property encompasses over 1,600 contiguous acres of land with full industrial permits, alongside established connections to electricity grids, water systems, fiber networks, and railway transportation.
This strategic move will expand MARA’s controlled power generation capabilities by roughly 65%. According to performance metrics from Long Ridge’s operations in the latter half of 2025, the facility should generate close to $144 million in annualized adjusted EBITDA.
Operational expenses at the plant remain under $15 per megawatt-hour on an all-in basis. This positions the facility among the most economically efficient power generation operations currently active.
Future AI Infrastructure Development
MARA’s vision includes transforming the location into a premier AI and high-performance computing facility. The company plans to break ground on the initial phase of AI and critical information technology infrastructure during the first half of 2027, with the first phase scheduled to become operational by mid-2028.
According to company statements, the Hannibal location has already attracted preliminary interest from several investment-grade artificial intelligence and critical IT clients.
Long-term expansion plans for the Hannibal site include scaling capacity to as much as 600 gross MW through grid infrastructure enhancements and additional on-site power generation capabilities.
Following the completion of the Long Ridge acquisition, MARA’s combined operational and pipeline capacity will total approximately 2.2 gigawatts spanning PJM, ERCOT, SPP, and global markets.
Transaction Funding Structure
MARA arranged financing for the purchase through a commitment from Barclays for a senior secured bridge loan reaching up to $785 million.
Additional financial support came through seller cooperation on debt arrangements, contract approvals, and noteholder proposals related to Long Ridge’s 8.750% senior secured notes maturing in 2032.
The company intends to keep Long Ridge’s current management and operations team in place while continuing the facility’s power distribution to the PJM grid with minimal expected disruption to end users.
Long Ridge maintains roughly 100 MMcfd of integrated fuel supply capacity alongside long-term hedging arrangements, providing a foundation for predictable revenue streams.
The deal’s completion is anticipated during the second half of 2026, subject to standard regulatory approvals including Hart-Scott-Rodino Act clearance and Federal Energy Regulatory Commission authorization.
Current analyst consensus on MARA stock stands at Sell, with a target price set at $8.50.
