FERC Clears MARA’s Long Ridge Power Plant Deal
The US Federal Energy Regulatory Commission (FERC) has approved MARA Holdings’ acquisition of the Long Ridge natural gas power plant, according to VanEck digital assets research head Matthew Sigel. FERC rejected objections from market monitors and did not require the plant to keep supplying the PJM grid as a condition of approval.
The deal has an enterprise value of about $1.512 billion and includes 485 megawatts of approved output, with 505 MW of nameplate capacity. The plant generates an estimated $144 million in annual adjusted EBITDA, implying a valuation of about 10.5 times EBITDA. MARA is expected to retain roughly $900 million of debt and pay about $610 million in cash. The company plans to use proceeds from a roughly $600 million bitcoin-backed loan drawn in August. The transaction’s outside deadline is November 30.
MARA has described about 600 MW of potential AI load at the site, including roughly 200 MW already connected to the grid. The structure of a possible expansion and MARA’s potential ownership stake remain uncertain. A lease signing around closing could be the next catalyst. The acquisition supports MARA’s expansion into power and AI infrastructure, but execution, financing and expansion details remain important risks for investors.
Neutral
The approval is strategically positive for MARA, but its direct effect on the broader cryptocurrency market is likely limited. It gives MARA more flexibility to use Long Ridge’s power capacity for its own operations or potential AI data-centre demand, while the reported economics and possible expansion offer a longer-term diversification angle. This may influence sentiment toward MARA shares and the bitcoin-mining sector more than it affects BTC’s price or market stability.
The deal also carries material execution and financing considerations: MARA is taking on about $900 million of debt and expects to fund roughly $610 million in cash, with a bitcoin-backed loan already drawn. A fall in BTC could pressure collateral values or increase perceived balance-sheet risk, while uncertainty around the AI expansion and future leases leaves projected demand unconfirmed. The plant’s valuation premium to recent PJM gas-power transactions is another consideration.
In the short term, traders may focus on closing by the November 30 deadline, lease announcements and financing disclosures. Those updates could move MARA stock and related mining equities, but are not necessarily market-wide crypto catalysts. Over the longer term, reliable access to power and AI-related revenue could help diversify MARA’s business beyond bitcoin mining. As with other miners pivoting toward energy and data-centre businesses, the potential benefit depends on execution, capital costs and actual customer demand. Overall, the approval is company-specific and balanced by unresolved risks, supporting a neutral market view.