MARA Holdings (NASDAQ: MARA), a leading Bitcoin mining firm, announced on Thursday a definitive agreement to acquire Long Ridge Energy & Power LLC from FTAI Infrastructure Inc. (NASDAQ: FIP) for approximately $1.5 billion. The deal brings a 505-megawatt natural gas combined-cycle power plant and over 1,600 acres of land in Hannibal, Ohio, boosting MARA’s total owned and operated power capacity by about 65% to 2.2 GW across PJM, ERCOT, SPP, and international markets.
Acquisition Details and Financing Structure
The acquired facility, which began commercial operations around 2021, uses a GE 7HA.02 turbine and is designed for hydrogen co-firing. It includes vertical integration with a ~100 million cubic feet per day natural gas supply, water rights, fiber optic connectivity, and rail infrastructure. Operating costs are under $15 per megawatt-hour, with long-term hedges ensuring stable cash flow. MARA will assume at least $785 million in existing debt and secure a 364-day senior secured bridge loan from Barclays. The equity portion will be funded from existing cash reserves and a Bitcoin-backed financing. The transaction also includes a $75 million termination fee for certain failure scenarios and standard regulatory and indemnification provisions. Close is expected in Q3 2026, pending Hart-Scott-Rodino Act clearance, FERC approval, and other conditions.
AI Data Center and Bitcoin Mining Dual Strategy
MARA plans to begin construction of initial AI and critical IT capacity in the first half of 2027, targeting mid-2028 for commercial operation. The site can be scaled to over 1 GW total capacity. The company has already received expressions of interest from investment-grade tenants for long-term leases of AI and high-performance computing space. Meanwhile, MARA will continue its existing 200 MW Bitcoin mining data center on site, alongside wholesale power sales through PJM. This flexibility allows the company to optimize revenue between Bitcoin mining, AI compute, and energy trading.
Market Reaction and Strategic Rationale
Shares of FTAI Infrastructure jumped roughly 14% as the seller plans to use net proceeds to retire about $300 million in corporate debt after clearing $1.16 billion in Long Ridge project-level debt. FTAI will redeploy capital into its freight rail and terminal businesses. For MARA, the acquisition represents a transformative vertical integration step. By owning a low-cost gas plant, the firm hedges against Bitcoin mining’s energy cost volatility while capturing the high-growth AI computing market. The deal contributes an estimated $144 million in annualized adjusted EBITDA based on Long Ridge’s H2 2025 performance, providing immediate financial accretion.
Industry Implications and Future Outlook
MARA’s move reflects a broader trend among crypto miners post-halving: repurposing energy assets into dual-purpose AI and Bitcoin mining infrastructure. This deal sets a precedent for using Bitcoin holdings or Bitcoin-backed loans to acquire traditional energy assets, potentially unlocking new capital for the sector. However, regulatory scrutiny of large power plant acquisitions by crypto firms remains a key risk. If approved, MARA could emerge as a major player in both the AI and Bitcoin mining sectors, challenging traditional data center operators. The flexibility to switch between Bitcoin mining and AI compute also provides resilience against market cycles, a strategy that could attract institutional investors seeking exposure to both digital assets and AI.