MARA Holdings (MARA) Stock: $1.5B Power Plant Deal Fuels AI Compute Ambitions

TLDR

• MARA buys 505 MW Ohio power plant to expand into AI compute infrastructure.
• MARA’s $1.5B power deal pushes its strategy beyond Bitcoin mining margins now.
• Long Ridge deal gives MARA direct power control for future AI compute growth.
• MARA stock reacts as $1.5B power acquisition reshapes its energy strategy now.
• MARA targets AI compute growth with major Ohio power plant acquisition plan.

MARA Holdings (MARA) moved deeper into energy infrastructure after signing a $1.5 billion deal for Long Ridge Energy & Power. The acquisition gives the company direct control of a major gas power asset in Ohio. Moreover, the move links Bitcoin mining, power ownership, and AI compute growth.

MARA stock closed at $13.29, up 4.24%, after a midday rally near $13.70 lost momentum. However, the stock slipped overnight to $13.05, down 1.81%, as trading cooled. The move reflected early interest, but later price action stayed muted.

Marathon Digital Holdings, Inc., MARA

The company agreed to buy Long Ridge from FTAI Infrastructure, with the price including assumed debt. The asset includes a 505 MW combined-cycle gas power plant in Hannibal, Ohio. Additionally, the site includes over 1,600 contiguous acres for future computing infrastructure.

Long Ridge Deal Adds Power Scale

MARA expects the acquisition to raise its owned-and-operated capacity by 65%. Consequently, total capacity would reach about 2.2 GW after the deal closes. That scale gives MARA more control over energy supply and operating costs.

The Long Ridge asset also brings an expected annualized adjusted EBITDA contribution of about $144 million.  MARA expects operational costs below $15 per megawatt-hour. That cost level gives the company a stronger base for compute-heavy operations.

The company described the acquisition as below replacement cost. Therefore, MARA sees the asset as cheaper than building similar infrastructure from scratch. The deal also gives the company a ready power platform in a tight energy market.

AI Compute Plans Shape MARA’s Strategy

MARA plans to start AI and critical IT infrastructure construction at Long Ridge in the first half of 2027. Initial capacity could begin in mid-2028, based on the company’s current timeline. Hence, the deal focuses on long-term infrastructure rather than immediate mining expansion.

The move comes after the April 2024 Bitcoin halving reduced mining rewards. As a result, mining companies have searched for stronger revenue sources beyond block rewards. MARA’s power plant deal shows how large miners now target energy-backed compute services.

Core Scientific, Iris Energy, and Hut 8 have already pushed into high-performance computing. However, MARA gains a different position because it owns the power source directly. The acquisition gives MARA a bigger platform for AI compute contracts and steady power-linked cash flow.

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