TLDR
- MARA Holdings agreed to acquire Long Ridge Energy & Power LLC for ~$1.5 billion, including assumed debt
- The deal adds a 505 MW gas power plant in Hannibal, Ohio, and over 1,600 acres of land
- The acquisition boosts MARA’s owned power capacity by roughly 65%
- Long Ridge is expected to add ~$144 million in annualized adjusted EBITDA at under $15/MWh operating costs
- MARA plans to begin AI and critical IT construction at the site in the first half of 2027
MARA Holdings announced on April 29 that it agreed to acquire Long Ridge Energy & Power LLC from FTAI Infrastructure for approximately $1.5 billion, including assumed debt.
Marathon Digital Holdings, Inc., MARA
The stock rose around 1.7% on Thursday following the news, even as bitcoin traded lower during the session.
The target asset is a 505 MW combined-cycle gas turbine plant in Hannibal, Ohio. It sits on more than 1,600 contiguous acres of industrially permitted land, with access to power, water, fiber, and rail infrastructure.
The deal is expected to increase MARA’s owned and operated power capacity by about 65%. Based on Long Ridge’s second half 2025 performance, the facility is projected to contribute approximately $144 million in annualized adjusted EBITDA.
The plant runs at all-in operating costs of less than $15 per megawatt-hour. That puts it among the more cost-efficient power facilities in operation.
AI Campus Plans
MARA intends to develop the site into a flagship AI and high-performance computing campus. Construction of an initial AI and critical IT buildout is planned for the first half of 2027, with initial capacity targeted to be ready for service by mid-2028.
The company says the Hannibal site has already received inbound interest from multiple investment-grade AI and critical IT tenants.
Over time, MARA sees potential to expand capacity at the site to up to 600 gross MW through grid expansions and on-site power generation.
With the addition of Long Ridge, MARA’s total operational and development capacity will reach approximately 2.2 gigawatts across the PJM, ERCOT, SPP, and international markets.
Financing the Deal
To fund the acquisition, MARA secured a commitment from Barclays for a senior secured bridge loan of up to $785 million.
The company also obtained seller cooperation on debt financing, contract consents, and noteholder offers tied to Long Ridge’s 8.750% senior secured notes due 2032.
MARA plans to retain Long Ridge’s existing operating team and maintain the plant’s power supply to the PJM grid without anticipated impact on consumers.
The Long Ridge facility holds approximately 100 MMcfd of vertically integrated fuel supply and benefits from long-dated hedges, which support stable cash flows.
The transaction is expected to close in the second half of 2026, pending regulatory approvals including clearance under the Hart-Scott-Rodino Act and Federal Energy Regulatory Commission sign-off.
The most recent analyst rating on MARA stock is a Sell, with a price target of $8.50.
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