MARA Stock Soars 16% on Long Ridge Energy Acquisition
Marathon Digital Holdings (MARA) stock surged 16% on Thursday to $11, as the company announced its biggest acquisition yet, buying Long Ridge Energy & Power. This significant expansion of MARA's power capacity solidifies its position in high-performance computing and AI infrastructure, marking a shift away from Bitcoin mining.
The deal aligns with management's strategy to acquire large-scale power assets that can adapt between crypto mining and AI workloads, depending on market conditions. The acquisition is the latest step in this direction, following previous moves by MARA to expand its data centers and power capacity.
The rally gained momentum from CoreWeave's strong Q2 results, which showed a 25% increase in compute pricing and higher contribution margins due to surging enterprise demand for AI data center capacity. This reinforced the idea that MARA's pivot towards AI infrastructure is on the right track.