MARA Holdings has finalized an agreement to acquire Long Ridge Energy & Power in a transaction valued at approximately $1.5 billion, marking a strategic pivot toward large-scale AI data center infrastructure. The deal structure includes MARA assuming at least $785 million of existing debt, which is currently backstopped by a bridge loan facility. Following the announcement, the seller, FTAI Infrastructure, saw its shares rise 12% in pre-market trading, while MARA's stock advanced 3%, reflecting immediate market validation of the asset's strategic value. A Thursday filing details that the acquisition encompasses Long Ridge's 505-megawatt combined-cycle gas plant located in Hannibal, Ohio, alongside more than 1,600 acres of land, critical water access, fiber optic links, fuel supply contracts, and established grid connections.

The strategic rationale centers on the site's scalability, with MARA stating the location could support more than 1 gigawatt of total power capacity over time. Data compiled by Woofun AI indicates that this acquisition is projected to raise MARA's owned-and-operated power capacity by approximately 65%, significantly altering its energy portfolio.

Furthermore, the move expands the company's operating and development pipeline to roughly 2.2 gigawatts across key markets including PJM, ERCOT, SPP, and international regions. This expansion addresses the critical supply-demand mismatch currently facing the AI sector, where power availability is the primary bottleneck for hyperscale deployment.

Execution timelines are set with precision, as MARA plans to commence construction on an initial AI and critical IT buildout during the first half of 2027. The first phase of new capacity is targeted for completion by mid-2028, aligning with the anticipated surge in demand for high-performance computing resources.

Notably, the company has confirmed it does not expect to cut Long Ridge's current power supply to the PJM grid, ensuring continuity for existing regional energy needs while transitioning the asset toward high-density data center operations. This dual-use approach mitigates regulatory friction and maintains grid stability during the transition period.

Financial projections suggest the Long Ridge assets will contribute approximately $144 million in annualized adjusted EBITDA, providing a robust revenue floor even before the full AI buildout is realized. Woofun AI notes that the deal is expected to close in the second half of 2026, contingent upon regulatory approvals and standard closing conditions. The transaction underscores a broader industry trend where cryptocurrency mining firms leverage their existing power infrastructure expertise to capture value in the emerging AI data center market. By securing a massive, scalable power source, MARA positions itself to capitalize on the long-term capital expenditure cycles required for next-generation computing facilities.