FTAI Infrastructure Inc. agreed to sell its Long Ridge Energy and Power assets to MARA Holdings, Inc. for approximately $1.52 billion [1].
The transaction allows FTAI Infrastructure to reduce its parent debt and strengthen its balance sheet by offloading significant energy assets. This move targets immediate liquidity and long-term operational cost reductions.
During an earnings call on May 7 [2], company leadership detailed the financial impact of the divestiture. The total transaction value is reported as $1.52 billion [1], though some reports estimate the figure at $1.5 billion [3]. The deal includes the assumption of $785 million in existing debt [1].
FTAI Infrastructure expects to receive more than $300 million in net proceeds from the sale [4]. The company intends to use these funds for parent debt reduction. Beyond the immediate cash infusion, the company expects to realize $30 million in annual interest savings [3].
"We signed an agreement to sell Long Ridge to Mara Holdings for an aggregate transaction value of $1," Kenneth Nicholson, CEO and President, said [5].
The sale of the Long Ridge Energy and Power facilities marks a strategic shift in the company's infrastructure portfolio. By prioritizing debt reduction over asset ownership in this specific energy sector, the company aims to improve its overall financial stability and credit profile.
“FTAI Infrastructure expects to receive more than $300 million in net proceeds from the sale.”
This divestiture indicates a strategic pivot toward deleveraging for FTAI Infrastructure. By transferring nearly $800 million in debt to MARA Holdings and securing $300 million in liquidity, the company is prioritizing a leaner balance sheet over the ownership of power generation assets. For MARA Holdings, the acquisition of Long Ridge Energy assets likely supports its energy-intensive operational requirements, such as bitcoin mining, by securing direct control over power infrastructure.
