MARA Stock Rallies as Bitcoin Miner Expands AI Infrastructure With $1.5B Long Ridge Acquisition
Highlights
- MARA announced that is has entered into an agreement to acquire Long Ridge Energy.
- The deal is said to be worth up to $1.5 billion as the Bitcoin miner expands its AI infrastructure.
- The MARA stock is up 13% on the back of this announcement.
MARA stock is up today, recording a double-digit gain after Bitcoin miner MARA Holdings announced it has entered into an agreement to purchase a power plant for up to $1.5 billion. This marks the company’s latest move to expand its AI infrastructure as it pivots from just BTC mining.
Bitcoin Miner Announces $1.5 Billion Power Plant Deal, MARA Stock Surges
In a press release, the Bitcoin miner announced it has entered into a definitive agreement to acquire Long Ridge Energy from FTAI Infrastructure for a total transaction value of nearly $1.5 billion, including the assumption of at least $785 million of debt. The firm noted that the acquisition includes Long Ridge Energy’s highly efficient 505 MW2 nameplate combined-cycle gas power plant in Ohio, along with over 1,600 contiguous acres.
The MARA stock is up on the back of this announcement, with the crypto stock one of the largest gainers among crypto stocks today. The stock is currently trading at around $12, up 13% today, according to TradingView data.
MARA’s Chairman, Fred Thiel, said that the agreement to acquire Long Ridge Energy is a significant step forward in executing their optimized digital infrastructure strategy. “Power is the scarce input in AI, and, with the planned addition of Long Ridge Energy, we are gaining control of a highly efficient, contracted energy platform that has a rare combination of large-scale power, land, water access, fuel supply, and grid interconnection in a single location,” he noted.
The CEO added that the site is also ready for expansion to build a flagship AI campus. The Bitcoin miner also stated that they expect this move to increase their owned-and-operated power capacity by almost 65%, which is a positive for MARA stock. The firm expects to close this deal in the second half of this year, subject to regulatory approvals.
A Path Towards Multiple Monetization Pathways
MARA said that the site is in a good position to support multiple monetization pathways. This includes long-term HPC leases and flexible compute operations, such as Bitcoin mining and wholesale power generation.
Notably, demand for data centers is rising as the AI wave continues to take center stage. Bitcoin miners like MARA have continued to tap into AI growth by developing AI infrastructure in a massive pivot from just BTC mining. Core Scientific recently sold 1,900 BTC to fund its AI pivot. MARA also sold 15,133 BTC last month, using the proceeds to repurchase convertible notes.
Commenting on MARA’s latest deal, VanEck’s Matthew Sigel signaled that the move was bullish for the MARA stock. “Smart non-dilutive pivot to infra, but tying incentives to MW raises the bar on not overpaying ahead of monetization,” he noted.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
