MARA Holdings acquires Long Ridge Energy

MARA Holdings has agreed to acquire Long Ridge Energy for approximately $1.5 billion, a move that significantly enhances its capacity in the energy and compute infrastructure sector. The acquisition includes a 505 MW gas power plant in Hannibal, Ohio, and more than 1,600 acres dedicated to digital infrastructure. This expansion is aimed at establishing a formidable presence in a key data center and power hub.

The deal involves not only the power generation facilities but also crucial components for an integrated infrastructure campus, including power, land, and water access, as well as rail logistics and fiber connectivity. The combined asset is positioned within a market known for its active power and data center operations. The acquisition will increase MARA's power capacity by about 65%, pushing its total operational and developmental potential to 2.2 gigawatts across several markets including PJM, ERCOT, and SPP, along with international locales.

Strategically, MARA Holdings views this acquisition as a consolidation of crucial resources—energy generation, land, and network interconnection—into a singular, scalable platform for supporting AI and critical IT services. The 144-million-dollar annualized adjusted EBITDA projected from Long Ridge underscores the financial viability enhanced by sub-$15 per MWh operating costs. The existing infrastructure's readiness aligns with MARA's ambitious plans, including the anticipated commencement of a significant AI and IT facility in 2027, furthering capacity to an eventual 600 gross MW.

This acquisition places MARA in a stronger competitive position within a sector where power generation is increasingly pivotal, particularly for AI applications. As power remains a limiting factor for AI advancements, MARA’s strategy to integrate this high-capacity, cost-efficient platform could serve as a competitive differentiator. The market for compute infrastructure is becoming more competitive, driven by escalating demand for data processing and AI capabilities, making MARA's integrated approach significantly timely.

Pending regulatory approvals, including the Hart-Scott-Rodino Act and review by the Federal Energy Regulatory Commission, the transaction is anticipated to finalize in the latter half of 2026. These approvals will be critical to advancing MARA's expansion plans as envisaged. Furthermore, the ongoing retention of Long Ridge's team will facilitate continuity in operations as MARA integrates these significant assets. Financial advice for MARA is provided by Barclays Capital and Compass Point, while legal guidance is offered by Paul, Weiss and Sidley Austin.