MARA funds power pipeline while waiting on regulators
- Bitcoin mining still drives nearly all reported revenue, with $172.2 million from mining in Q1 2026.
- The company acquired rights to a 2 GW site in Matagorda County, Texas to host its own mining fleet.
- MARA locked in $600 million of bitcoin-backed debt to fund the pending Long Ridge power plant deal without issuing new stock.
- The cost to mine a bitcoin at owned sites remains a challenge at nearly $39,000.
- The biggest near-term question is whether FERC limits how MARA can use Long Ridge power behind the meter.
Power is the swing factor
MARA is no longer best viewed as a plain bitcoin miner. The company is trying to become a digital infrastructure business. The simple idea is to control cheap power, use bitcoin mining as the first workload, then shift some sites toward AI and high-performance computing when customers are ready. They are expanding fast, recently adding rights to a 2 GW site in Matagorda County, Texas, and launching platforms like Vertebra AI for power management.
The bull case depends on controlling energy assets and eliminating costly third-party hosting. If MARA closes the roughly $1.5 billion Long Ridge acquisition without harsh limits, it would own a 505 MW gas power plant in Ohio. Management says the plant produced $144 million of annualized adjusted EBITDA in the second half of 2025. By funding this deal with $600 million in bitcoin-backed debt instead of new stock, they are protecting current shareholders from dilution.
The bear case is also clear. Mining is getting more expensive. The cost to produce a bitcoin at owned sites was roughly $38,700 recently, keeping pressure on margins. Furthermore, MARA has pledged 54 percent of its bitcoin treasury as collateral, which increases financial leverage.
The stock also carries a price and balance sheet question. Long Ridge adds deal, debt, and regulatory risk. The company believes FERC will approve the deal by year-end, but regulators could still block it or add painful rules. The success of the pivot now hinges on executing complex data center development.
Turning energy into compute
MARA makes most of its money by mining bitcoin. Its computers solve bitcoin network problems and earn block rewards and transaction fees. In Q1 2026, mining revenue was $172.2 million. Mining monetizes power assets immediately while keeping options open for the future.
The company also owns a large bitcoin treasury. It uses these assets to fund growth, recently securing $600 million in bitcoin-backed credit facilities. This allows MARA to pay for acquisitions without issuing shares, but it brings pledged bitcoin to 54 percent of total holdings.
The next leg is AI and high-performance computing. MARA has two paths. The Starwood joint venture aims to develop large data centers for hyperscale tenants using capital-efficient land deals. Exaion SAS targets sovereign, enterprise, and private cloud AI compute, and is expected to hit low 8-digit revenue this year. The company is also commercializing its Hashrate Under Management software, an 8-digit annualized run-rate business.
The model breaks if power is not as cheap or as controllable as planned. A PJM market monitor has pushed for conditions that could require Long Ridge output to stay available to the grid. If FERC accepts that view, MARA may not get the full behind-the-meter advantage it is buying.
What MARA sells or owns
Bitcoin production
This is the current core business. MARA operated about 72.2 EH/s of energized hashrate as of March 31, 2026.
Bitcoin treasury and yield
MARA holds a large bitcoin position. It pledges 54 percent of its bitcoin to back debt facilities for acquisitions and growth.
Power generation pipeline
The pending Long Ridge acquisition adds a 505 MW gas plant, and the new Matagorda site in Texas offers up to 2 GW of future capacity.
Starwood AI and HPC data centers
The Starwood joint venture is meant to turn powered land into large data centers for major tenants. Management has guided to possible tenant leases by year-end 2026.
Exaion AI and private cloud
Exaion SAS gives MARA a second AI path focused on sovereign, enterprise, and private cloud customers. Management expects low 8-digit revenue this year.
Technology platforms
MARA is commercializing software like Vertebra AI for power management and Hashrate Under Management for financial infrastructure.
Revenue still comes from mining
Segment mix is from the three months ended March 31, 2026. Mining produced $172.2 million in revenue, while hosting services had no remaining customers and produced $1.1 million from expired agreements.
What could break the thesis
FERC limits Long Ridge power use
High impact · Medium oddsThe Long Ridge deal is built around controlling power for compute. A PJM market monitor has recommended that FERC require the 505 MW plant to keep output available to PJM markets. If that condition is imposed, MARA may lose much of the behind-the-meter benefit it wants.
Long Ridge fails to close
High impact · Medium oddsThe acquisition has a roughly $1.5 billion base purchase price and still depends on closing conditions. Failure to close would be a major setback to the energy-backed AI plan. The company could also face a $75.0 million termination fee in some cases.
Bitcoin mining margins keep shrinking
High impact · High oddsMARA's purchased energy cost per bitcoin at owned sites was roughly $38,700 recently. That cost remains high because global network hashrate and difficulty increased. If bitcoin price falls or difficulty keeps rising, mining cash flow can weaken fast.
AI tenants do not sign
High impact · Medium oddsManagement has expressed confidence in signing multiple AI or HPC leases through the Starwood joint venture by year-end 2026. Until a tenant signs, the AI pivot is still a plan rather than a proven revenue stream. Lease terms will matter as much as tenant names.
Financial leverage from pledged bitcoin
Medium impact · Medium oddsMARA uses part of its bitcoin treasury for lending or collateral. Currently, 54 percent of its holdings are pledged to support $600 million in credit facilities. That can add income, but it also increases financial leverage if bitcoin prices drop sharply.
In one breath
Is MARA still a bitcoin mining company?
Yes. Mining is still the main source of reported revenue. The company is trying to add AI data centers and power generation, but those plans are not yet the main business.
Why does the Long Ridge acquisition matter so much?
Long Ridge would give MARA control of a 505 MW power plant in Ohio. Cheap and reliable power is the key input for both bitcoin mining and AI data centers.
What is behind-the-meter power?
Behind-the-meter power means using electricity directly from a nearby plant instead of buying it through the normal grid process. MARA wants that setup because it can lower cost and speed up data center development.
What should investors watch next?
The main items are the FERC ruling, the closing of Long Ridge, and the first major AI or HPC tenant lease. Bitcoin price versus MARA's mining cost also remains critical.
Sources and research notes
This page combines Finn's company research with public filings and other cited materials. The thesis is reviewed when material company information changes; Finn Scores use the latest available scoring data.
- Thesis reviewed
- August 23, 2026
- Score data
- September 6, 2026
- Reviewed by
- Shivam Bharuka
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