Major energy firm makes $1.5 billion move into AI infrastructure

By TheStreet Roundtable

1 day ago

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A multibillion-dollar energy infrastructure deal is putting an unlikely player at the center of the artificial intelligence boom, as demand for power and compute capacity continues to accelerate.

The move highlights a growing shift in how companies are positioning themselves to capture value from AI, where access to energy is increasingly becoming the limiting factor.

$1.5B acquisition targets AI infrastructure play

On April 30, MARA Holdings (NASDAQ: MARA) announced it had agreed to acquire Long Ridge Energy & Power in a deal valued at approximately $1.5 billion, including the assumption of existing debt.

Long Ridge Energy & Power is a US-based energy infrastructure company that develops and operates large-scale, high-efficiency power plants designed to supply reliable electricity for grids and data centers.

The acquisition includes a 505-megawatt natural gas power plant in Ohio and more than 1,600 acres of land, forming what the company described as a ready-made digital infrastructure campus with over 1 gigawatt of potential capacity.

The site provides immediate access to power, land, water and fiber, key inputs for data centers and high-performance computing workloads.

“The agreement to acquire Long Ridge Energy is a significant step forward in executing our optimized digital infrastructure strategy,” said Fred Thiel, MARA’s chairman and CEO.

He added that “power is the scarce input in AI,” emphasizing that controlling energy infrastructure is becoming critical as demand for compute rises.

The company said the deal is expected to increase its owned and operated capacity by roughly 65% while adding about $144 million in annualized adjusted EBITDA, providing more stable and predictable cash flows.

The transaction, expected to close in the second half of 2026 pending regulatory approvals, positions MARA to develop a large-scale AI and data center campus capable of serving hyperscale and enterprise clients.

Bitcoin miner pivots as industry economics shift

The deal marks a significant evolution for MARA, which built its business as one of the world’s largest Bitcoin mining companies.

Its original model relied heavily on cryptocurrency prices, making revenue streams volatile and closely tied to market cycles.

That model has come under pressure in recent years. The company reported a $1.7 billion loss in the fourth quarter of 2025, largely driven by declines in the value of its digital asset holdings.

At the same time, rising energy costs and increasing network difficulty have compressed mining margins, reducing profitability across the sector.

In response, MARA has taken a series of steps to reposition its business.

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In March, the company sold 15,133 Bitcoin for approximately $1.1 billion, using the proceeds to reduce debt and strengthen its balance sheet.

“Our decision to sell a portion of our bitcoin holdings reflects a strategic capital allocation move designed to strengthen our balance sheet and position the company for long-term growth,” Thiel said at the time.

The firm has also cut roughly 15% of its workforce and expanded into AI-focused data centers and high-performance computing infrastructure.

For investors, the key question now is whether this transformation can deliver more stable, long-term returns than the volatile economics of Bitcoin mining.

At the time of writing on April 30, shares of MARA Holdings were trading around $11.83, up more than 10% on the day, reflecting strong investor interest following the company’s $1.5 billion push into energy-backed AI infrastructure.