Key Highlights
- Marathon Digital secured a deal to purchase Long Ridge Energy & Power LLC for approximately $1.5 billion, debt included
- Transaction includes a 505-megawatt natural gas facility located in Hannibal, Ohio, plus over 1,600 acres
- MARA’s controlled power generation capability expands by approximately 65% through this purchase
- Long Ridge facility projected to generate around $144 million in annual adjusted EBITDA with sub-$15/MWh costs
- AI infrastructure and critical computing construction scheduled to commence during H1 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, which includes the assumption of existing debt obligations.
Marathon Digital Holdings, Inc., MARA
Shares climbed approximately 1.7% during Thursday’s trading session despite bitcoin experiencing downward pressure throughout the day.
Long Ridge operates a 505-megawatt combined-cycle natural gas turbine facility situated in Hannibal, Ohio. The property encompasses more than 1,600 adjacent acres of industrially zoned land with established connections to electrical grids, water systems, fiber optic networks, and railway transport.
This acquisition is anticipated to grow MARA’s self-owned and managed energy generation capacity by roughly 65%. Leveraging Long Ridge’s operational metrics from the latter half of 2025, the site is forecast to deliver approximately $144 million in annualized adjusted EBITDA.
Operating expenses at the facility total under $15 per megawatt-hour on an all-in basis. This positions it as one of the more economically efficient power generation assets currently operational.
Strategic AI Development Initiative
Marathon Digital plans to transform the Hannibal property into a premier AI and high-performance computing hub. The initial phase of AI and mission-critical IT infrastructure development is slated to begin in early 2027, with the first operational capacity anticipated by the middle of 2028.
According to the company, the Ohio location has already attracted significant interest from several investment-grade artificial intelligence and critical IT infrastructure clients.
Looking ahead, MARA envisions the possibility of scaling the site’s capacity to as much as 600 gross megawatts through electrical grid 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 spanning PJM, ERCOT, SPP, and global markets.
Transaction Funding Structure
Marathon Digital arranged financing through Barclays, securing a commitment for a senior secured bridge loan facility of up to $785 million to support the acquisition.
The company additionally negotiated seller support regarding debt financing arrangements, contractual consents, and offers to existing noteholders associated with Long Ridge’s 8.750% senior secured bonds maturing in 2032.
MARA intends to keep Long Ridge’s current management and operations personnel in place while continuing the facility’s electricity delivery to the PJM grid with no expected disruption to end consumers.
Long Ridge maintains approximately 100 million cubic feet per day of vertically integrated natural gas supply and utilizes long-term hedging strategies that provide predictable cash flow generation.
Transaction closure is projected for the second half of 2026, subject to obtaining necessary regulatory approvals including Hart-Scott-Rodino Act clearance and authorization from the Federal Energy Regulatory Commission.
The latest Wall Street analyst rating on MARA stock stands at Sell, with an $8.50 price target.
