MARA Holdings, Inc. (NASDAQ:MARA) experienced a notable pullback in late-morning trading on Friday, with shares declining 5.5% to $12.49. The drop reversed approximately 61% of the 10% gain recorded in the previous session, as market participants digested the details of a recently filed SEC document that outlined a $600 million maximum purchase price for the company's Texas-based project company acquisition.
The broader financial context involves a total capital expenditure of $2.1 billion when combining the Texas ceiling with MARA's planned $1.5 billion acquisition of the Long Ridge facility. Together, these two headline deal values represent about 44% of MARA's current market capitalization of $4.75 billion. This figure does not account for future construction costs at the Matagorda site in Texas. It is important to note that the payments are structured over time: the Long Ridge deal includes assumed debt, while the Texas payments are tied to specific development milestones.
The Matagorda project is a focused endeavor. The site's planned capacity of 2,000 megawatts (MW) constitutes 41.7% of the total 4,800 MW that MARA expects to have in its portfolio once all projects, including Long Ridge, are operational. The primary objective is to serve high-performance computing needs, such as artificial intelligence and other data-intensive workloads for U.S. customers. MARA has indicated that it is in discussions with potential tenants, with a goal of securing 1,000 MW of commitments by October 2027 and the full 2,000 MW by April 2028.
However, holding power rights is not equivalent to generating rental income. Analysts at Compass Point, Michael Donovan and Ed Engel, noted in a recent report that companies with AI data center assets should be valued based on a landlord-style model, where signed leases are separated from projects that have not yet secured customers. Under this framework, the Matagorda site is currently considered as inventory under development rather than an income-producing asset.
MARA's two largest announced power deals are at different stages of this lifecycle. The Matagorda transaction was closed on July 2, with full power expected by April 2028. The site covers over 1,200 acres and could cost up to $600 million, contingent on hitting milestones. No tenant lease details have been disclosed. The Long Ridge deal in Ohio is still pending, with closure anticipated in the second half of 2026. It involves a 505 MW gas plant on a site that may exceed 1,000 MW, with a headline consideration of $1.5 billion including debt. MARA has disclosed an annualized adjusted EBITDA of approximately $144 million for Long Ridge, based on its second-half 2025 performance projected for a full year.
The Texas price is not paid upfront; it is structured in stages tied to regulatory approvals, land acquisition, power authorization, and securing a third-party data center lease. If all targets are met, the purchase price equates to $300,000 per planned MW for the project company stake, before any campus buildout costs, which MARA has not yet broken out. The full contract will be detailed in the third-quarter filing.
On Friday, MARA's performance lagged behind bitcoin, which rose 1.6% to $64,068, and two other mining stocks. Riot Platforms (NASDAQ:RIOT) fell 3.3% to $20.79, while CleanSpark (NASDAQ:CLSK) declined 2.6% to $12.56. The Nasdaq Composite was down 0.38% at 26,106.50.
In contrast, TeraWulf Inc. (NASDAQ:WULF) stands out for its contract terms, having secured a 20-year lease with Anthropic for approximately 401 MW, with potential revenue of nearly $19 billion. CEO Paul Prager described it as a long-duration revenue stream. MARA's Texas site is larger in planned capacity but lacks such a committed customer.
MARA sees inherent value in power assets even before rental income begins. Chairman and CEO Fred Thiel stated that reliable, scalable power will become increasingly valuable. Additionally, HIF USA CEO Renato Pereira confirmed that a Notice to Proceed has been issued for switchyard work, a step toward grid connection, but not a clear indicator that tenants are secured.
The company has various funding options, each with its own drawbacks. As of March 31, MARA reported $513.7 million in cash and $2.4 billion worth of bitcoin, against approximately $2.4 billion in debt. It also had $1.5 billion remaining under an at-the-market equity program. Its Starwood deal allows for non-recourse project debt if a qualifying tenant signs on. In the first quarter, MARA sold 20,880 bitcoin for $1.5 billion, using its crypto holdings as a funding source. However, risks remain: regulatory delays, a lack of tenant commitments, a falling bitcoin price, or capital tied up in land and grid deals without rental income could force further bitcoin sales or equity issuance. Investors are now focused on securing a real tenant deal, released lease terms, and proof that the first 1,000 MW will be delivered on time.
