MARA Holdings Inc. (NASDAQ:MARA) saw its shares rally sharply on Thursday, gaining 11.8% to $13.44 in early afternoon trading, after the company disclosed plans for a massive artificial intelligence data center project in Texas. The stock briefly touched a session high of $14.38, with over 51 million shares changing hands, as investors priced in the potential of the company's power assets.
The move higher came after MARA announced that its Volt Texas unit had acquired nearly all membership interests in MAT 1177 LLC, a company holding land rights and a letter agreement with a utility for up to 2,000 megawatts of power. The site, located in Matagorda County about 90 miles from Houston, spans more than 1,200 acres and could see an initial 1 GW of power as early as October 2027, ramping to 2 GW by April 2028.
Market Reacts to Power Optionality
The share price surge added approximately $540 million to MARA's market capitalization, nearly 90% of the maximum $600 million in milestone payouts tied to the deal. The milestones are linked to approvals, land acquisition, power securing, and a third-party data center lease. Notably, the company has not yet named a tenant or disclosed the full capital expenditure budget for the campus build-out.
The market's enthusiasm underscores a broader trend: investors are increasingly valuing access to limited power capacity over contracted revenue. High-performance computing (HPC) and AI workloads require reliable, scalable electricity, and companies like MARA that control such assets are being rewarded. TeraWulf Inc. (NASDAQ:WULF) provided a fresh example this week, signing a 20-year lease with Anthropic that is expected to generate about $19 billion in revenue.
Peer Performance and Sector Dynamics
MARA's rally was part of a mixed day for crypto and AI-related miners. TeraWulf rose 5.0%, and Cipher Digital Inc. (NASDAQ:CIFR) added 7.0%, while IREN Ltd. (NASDAQ:IREN) slipped 0.9%. The moves suggest investors are selectively betting on miners with AI exposure rather than those tied solely to bitcoin production. Bitcoin itself gained 1.1% to $62,681, providing a tailwind but not enough alone to explain MARA's outsized jump.
The broader market also firmed, with the Nasdaq Composite and S&P 500 gaining as chip stocks climbed. However, Michael Hewson, senior market analyst at iFOREX, cautioned that stretched AI profit expectations and Middle East risks create a 'toxic combination' for AI-infrastructure plays like MARA.
Financial Context and Risks
MARA's Texas project adds to its pending $1.5 billion buyout of Ohio-based Long Ridge Energy & Power, which includes a 505-megawatt plant and over 1,600 acres. CEO Fred Thiel has described Long Ridge as having 'all the key components' for an ideal data center campus. The combined portfolio could exceed 4.8 GW if the Long Ridge deal closes.
Funding remains a key question. As of March 31, MARA held $513.7 million in cash and equivalents against $2.28 billion in long-term liabilities. The company recently reduced leverage by selling bitcoin and repurchasing notes, but the Texas filing did not include a full capex budget for the campus build-out. The 8-K also warns that the site's value depends on approvals, power authorization, and securing a third-party lease, and that delays or adverse lease terms could undermine current expectations.
Investors are clearly betting on the optionality of MARA's power assets, but the lack of a signed tenant and the potential for equity dilution or project delays mean Thursday's gains could prove fragile. For now, the market is treating MARA less as a bitcoin miner and more as an AI infrastructure play.
