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MARA buys Ohio gas plant operator Long Ridge at $1.5 billion to expand beyond bitcoin

MARA Holdings announced on Thursday that it would 'buy Long Ridge Energy & Power for $1.5 billion, including debt. This is a major step in the bitcoin mining company's efforts to reposition itself as a digital energy and infrastructure company.

It is one of the biggest companies in the world that mines and holds bitcoins. Now, as AI advances and demand increases, it has shifted its focus to digital infrastructure.

MARA's previous focus on cryptocurrency is complementary to its revised strategy. However, it is looking more to energy assets in order to have enough power to develop data centers.

IDEAL ASSETS FOR NEW STRATEGIES

This evolution has been accelerated by the acquisition of Long Ridge Energy.

The company said that Long 'Ridge owned a 505 megawatt natural gas combined cycle power plant in Hannibal Ohio as well as 1,600 acres of contiguous land on which MARA planned to build a data centre powered by the plant.

Fred Thiel, MARA's Chief executive officer, said that the campus "has all the components we need for an ideal data center campus".

He noted that the data center was a highly efficient facility due to the fact that it was built in 2021. The land had already been approved for industrial use.

Thiel stated that MARA has already received interest from several?potential tenants. These include hyperscalers, firms which provide massive cloud computing capacity. He said that the company anticipates having a tenant lined up around the time of the closing.

The closing of the acquisition is anticipated to be later in 2026 depending on regulatory approvals, including those from the Federal Energy Regulatory Commission.

Assets that provide instant cash

The $1.5 billion transaction includes an assumption of existing debt of $785 million and the Long Ridge assets generate annualized earnings of $144 million.

MARA will have cash in hand before the project's contributions.

Thiel stated that MARA's ownership of Long Ridge would not affect the amount of power Long Ridge provides to retail customers.

There are growing concerns in the United States over the impact of data centers on the grid. The PJM transmission area, where the plant is situated, is considered to be the most vulnerable.

(source: Reuters)