Key Highlights
- Marathon Digital agreed to purchase Long Ridge Energy & Power LLC in a transaction valued at approximately $1.5 billion, debt included
- The transaction brings a 505 megawatt natural gas power facility located in Hannibal, Ohio, plus over 1,600 acres of property
- MARA’s controlled power generation capacity will increase by approximately 65% through this deal
- Long Ridge projects annual adjusted EBITDA of around $144 million with operational expenses below $15 per MWh
- The company targets early 2027 to commence artificial intelligence and critical infrastructure development at the location
On April 29, MARA Holdings revealed its agreement to purchase Long Ridge Energy & Power LLC from FTAI Infrastructure in a deal worth roughly $1.5 billion when including assumed liabilities.
Marathon Digital Holdings, Inc., MARA
Shares increased approximately 1.7% during Thursday’s trading session despite bitcoin experiencing downward pressure that day.
The acquired asset consists of a 505 megawatt combined-cycle gas turbine facility situated in Hannibal, Ohio. The property encompasses more than 1,600 adjacent acres of land zoned for industrial use, featuring connections to electrical grid, water supply, fiber optic networks, and railway systems.
This acquisition is projected to expand MARA’s owned power generation capabilities by roughly 65%. Using Long Ridge’s performance metrics from the latter half of 2025 as a benchmark, the facility should generate about $144 million in yearly adjusted EBITDA.
Operational expenses for the facility run under $15 per megawatt-hour on an all-in basis. This positions it as one of the more economically efficient power generation assets currently operating.
Strategy for AI Development
Marathon Digital plans to transform this location into a premier AI and advanced computing facility. The first phase of artificial intelligence and essential IT infrastructure construction is scheduled to begin during the first six months of 2027, with operations expected to commence by the middle of 2028.
According to the company, the Hannibal property has already attracted significant attention from several investment-grade artificial intelligence and critical IT prospective tenants.
Looking ahead, MARA believes the site could eventually support up to 600 gross megawatts through electrical grid enhancements and additional on-site power generation capabilities.
Following the Long Ridge addition, Marathon Digital’s combined operational and pipeline capacity will total roughly 2.2 gigawatts spanning PJM, ERCOT, SPP, and global markets.
Deal Financing Structure
Marathon Digital arranged financing through Barclays, which committed to provide a senior secured bridge loan facility of up to $785 million.
Additionally, the company negotiated seller support regarding debt financing arrangements, necessary contract approvals, and noteholder proposals related to Long Ridge’s 8.750% senior secured bonds maturing in 2032.
MARA intends to keep Long Ridge’s current management and operations team in place while continuing to supply electricity to the PJM grid without expected disruption to end users.
The Long Ridge asset includes roughly 100 MMcfd of integrated fuel supply arrangements along with long-term hedging instruments that provide predictable revenue streams.
Regulatory approvals are pending, including Hart-Scott-Rodino antitrust clearance and Federal Energy Regulatory Commission authorization. The deal is anticipated to finalize during the second half of 2026.
The latest Wall Street analyst rating on MARA stock stands at Sell, with an $8.50 price target.
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