MARA Holdings (MARA) is making a massive move into the world of AI computing. The company’s stock leaped 3.5% in pre-market trading on Thursday, after it announced a $1.5 billion deal to buy Long Ridge Energy. This purchase provides the firm with the energy it needs to build and run large data centers for artificial intelligence.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
MARA Secures 1,600 Acres for Future Growth
The company is buying more than just a power plant. This deal includes a 505-megawatt gas plant and 1,600 acres of land in Ohio. This location already has the fiber links and water access that are vital for running data centers. The current owner, FTAI Infrastructure (FIP), saw its stock price jump 12% in early trading following the news.
Long Ridge Acquisition Adds 65% More Power Capacity
This purchase helps the firm grow its footprint much faster than before. By owning this site, the company increases its current power capacity by about 65%. The land in Ohio could eventually support over 1 gigawatt of power over time. This helps the firm reach its goal of having a massive 2.2 gigawatt pipeline for projects in several different markets.
Furthermore, MARA Holdings expects this deal to bring in an extra $144 million in yearly earnings. It is also taking on $785 million of debt as part of the transaction. Plans are already in place to start building the first AI centers in the first half of 2027. The company hopes to have the first section of the new site running by the middle of 2028.
Is MARA Holdings a Good Investment?
According to TipRanks, MARA stock has received a Moderate Buy consensus rating, with five Buys, four Holds, and one Sell rating assigned in the last three months. The average MARA stock price target is $13.08, suggesting a potential upside of 22% from the current level.
