Key Highlights
- Marathon Digital has entered into an agreement to purchase Long Ridge Energy & Power LLC for approximately $1.5 billion, debt included
- Transaction secures a 505 MW combined-cycle gas turbine facility located in Hannibal, Ohio, plus over 1,600 acres
- Deal expands MARA’s controlled power generation capacity by approximately 65%
- Long Ridge facility projected to generate roughly $144 million in yearly adjusted EBITDA with sub-$15/MWh operating expenses
- Company targets AI and critical infrastructure development kickoff in early 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, including debt assumptions.
Marathon Digital Holdings, Inc., MARA
Shares of the company advanced approximately 1.7% during Thursday’s trading session despite bitcoin experiencing downward pressure.
The acquisition centers on a 505 megawatt combined-cycle gas turbine power generation facility situated in Hannibal, Ohio. The property encompasses more than 1,600 contiguous acres of land zoned for industrial use, complete with established connections to electrical grid, water systems, fiber optic networks, and rail transportation.
This transaction is set to expand MARA’s directly owned and operated energy generation capabilities by roughly 65%. According to performance metrics from Long Ridge during the latter half of 2025, the plant is anticipated to deliver around $144 million in annualized adjusted EBITDA.
Operating expenses at the facility come in below $15 per megawatt-hour on an all-in basis. This positions the plant among the most economically efficient power generation assets currently operating.
Vision for AI Infrastructure Development
MARA’s strategic vision involves transforming the property into a premier flagship AI and high-performance computing facility. Construction activities for the initial artificial intelligence and critical information technology infrastructure are scheduled to commence during the first six months of 2027, with the first phase expected to become operational by the middle of 2028.
According to the company, the Hannibal location has already attracted significant interest from several investment-grade artificial intelligence and critical IT potential tenants.
Looking ahead, MARA envisions opportunities to scale capacity at the location to as much as 600 gross megawatts through a combination of electrical grid infrastructure enhancements and additional on-site power generation capabilities.
Following the 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 global markets.
Financial Structure and Funding
To support the acquisition financially, MARA has obtained a commitment from Barclays for a senior secured bridge financing facility of up to $785 million.
Additionally, the company has secured seller cooperation regarding debt financing arrangements, necessary contract consents, and offers to noteholders associated with Long Ridge’s 8.750% senior secured bonds maturing in 2032.
MARA intends to keep Long Ridge’s current operational management team in place and continue the facility’s electricity supply obligations to the PJM grid with no expected disruption to end consumers.
The Long Ridge asset maintains approximately 100 MMcfd of vertically integrated natural gas fuel supply and is protected by long-term price hedges, which provide stability to cash flow generation.
The deal is anticipated to reach closure during the second half of 2026, subject to obtaining necessary regulatory clearances including Hart-Scott-Rodino Act approval and authorization from the Federal Energy Regulatory Commission.
The latest analyst recommendation on MARA stock stands at Sell, with an established price target of $8.50.
