MARA Holdings (NASDAQ: MARA) is set to report first-quarter earnings on Monday, May 11, ahead of a 5 p.m. Eastern webcast, but the spotlight is squarely on the company's strategic pivot from pure bitcoin mining to energy-backed digital infrastructure. The Miami-based firm closed Friday at $12.94, up 2%, as bitcoin hovered near $81,434 over the weekend.
The .5 Billion Bet on Long Ridge Energy
On April 29, MARA struck a deal to acquire Long Ridge Energy & Power LLC for roughly $1.5 billion, including at least $785 million in debt. The acquisition delivers a 505-megawatt combined-cycle natural gas plant in Hannibal, Ohio, along with over 1,600 acres of land—a prime asset for data-center expansion as demand for power surges among AI and cloud-computing operators. MARA plans to use the site to jump-start its entry into AI and high-performance computing, with the potential to scale to over 1 gigawatt of total power capacity and allocate up to 600 gross megawatts for AI and critical IT workloads. The company pegs Long Ridge's annualized adjusted EBITDA at $144 million.
Debt and Noteholder Approval
A critical hurdle remains: MARA has launched a consent solicitation for $600 million in Long Ridge Energy's 8.750% senior secured notes due 2032. Without approval from holders of at least a majority of the outstanding principal, a change-of-control clause would force MARA to buy back the notes at 101% of face value plus accrued interest. MARA has stated that if the necessary consents are not obtained or the deal fails to close, no consent fee will be paid, and the proposed amendments will not take effect. The transaction also requires regulatory clearance from the Federal Energy Regulatory Commission and other agencies.
Strategic Shift: From Bitcoin to AI Infrastructure
MARA's balance sheet reflects this transformation. In March, the company sold 15,133 bitcoin for roughly $1.1 billion, then used the proceeds to buy back about $1.0 billion in 0.00% convertible senior notes due 2030 and 2031, reducing both debt and potential dilution. CEO Fred Thiel described the bitcoin sale as a capital allocation decision, signaling a shift beyond core mining toward digital energy and AI infrastructure. MARA also has a partnership with Starwood Capital, targeting roughly 1 gigawatt of IT capacity online soon, with plans to expand to over 2.5 gigawatts. Starwood Digital Ventures will handle design, tenant sourcing, construction, and operations at selected MARA locations.
Industry Rivals and Analyst Views
Competitors are pursuing similar strategies. On May 6, Hut 8 locked in a 15-year, 352-megawatt AI data-center lease valued at $9.8 billion. Riot Platforms announced a partnership with Terrestrial Energy for nuclear-powered data-center projects, while CleanSpark highlighted its 1.8 gigawatts under contract as part of a multi-gigawatt AI push. Rosenblatt analyst Chris Brendler raised his price target on MARA to $15 from $11, maintaining a Buy rating and calling the Long Ridge deal a "major step forward" for the company's energy-backed digital infrastructure strategy.
What to Watch on Monday
Monday's earnings call is expected to provide clarity on funding, customer demand, and the health of MARA's mining segment, which still generates the bulk of revenue. Investors will also be watching for updates on tenant interest—Thiel has indicated that hyperscaler interest is strong and that a tenant could be secured by the time the deal closes. With the Long Ridge acquisition still pending regulatory and noteholder approval, MARA's ability to execute on its AI pivot will be under intense scrutiny.
