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July 22, 2025 – Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a leading developer of green data centers that transform surplus renewable energy into global computing resources, today announced it has closed a $20 million funding round from Spring Lane Capital (“SLC”). This investment will specifically fuel the construction of Project Kati 1, a 35-megawatt (MW) expansion of Soluna’s green data center fleet in Texas.
This latest funding from Spring Lane Capital, a private equity firm focused on sustainability solutions, marks a continued strategic partnership that began with Soluna’s flagship Project Dorothy. The $20 million is expected to fully cover Project Kati 1’s funding needs, including working capital, and will support approximately 12,000 next-generation Bitcoin mining rigs. Construction for Project Kati 1 is slated to commence in Q3 2025, with initial energization and ramp-up targeted for Q1 2026.
“Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy,” said John Belizaire, CEO of Soluna. “We expect these funds to fuel the construction of the first 35MW of the 83MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting. Our model of leveraging excess clean energy to generate low-cost computing is the future of green Bitcoin mining and green data centers.”
Soluna’s innovative approach addresses the critical issue of "spilled power" – the excess renewable energy that often goes to waste when the grid cannot absorb it or demand is too low. By co-locating modular, scalable data centers directly with wind, solar, or hydroelectric power plants, Soluna converts this otherwise wasted energy into valuable computing services for applications such as cryptocurrency mining, Artificial Intelligence (AI), and machine learning. This not only provides a cost-effective alternative to traditional battery storage or transmission lines but also helps stabilize the grid by consuming flexible demand.
Rob Day, Partner at Spring Lane Capital, commented, "We continue to invest in and be strategic supporters of Soluna because they continue to take steps toward sustainable high-performance computing and meeting green data center demand. Soluna is driving demand for clean power by giving a floor price and improving the bottom line of the renewable power partners they work with. The ultimate result is more wind farms and solar farms that would not otherwise be built. We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”
This $20 million investment from Spring Lane Capital’s second private equity fund builds on previous significant funding milestones for Soluna. In May 2022, Soluna secured $35 million from Spring Lane Capital for three behind-the-meter (BTM) projects, including the 100 MW Project Dorothy, bringing Soluna’s total funding for data centers co-located with renewable energy assets to $100 million at that time. Additionally, Soluna recently secured a $5 million non-dilutive debt financing from Galaxy Digital in March 2025, underscoring the strength of its project cash flows and investor confidence in its business model. The company also completed a $20 million debt financing in February 2022 and a $29.2 million public offering of Series A Preferred Stock in April 2022 to fund its data center expansion.
Soluna’s proprietary software, MaestroOS™, plays a crucial role in energizing a greener grid while delivering cost-effective and sustainable computing solutions. Project Kati 1 has already secured all necessary ERCOT planning approvals, ensuring a smooth path to energization.
About Soluna Holdings, Inc.:
Soluna Holdings, Inc. (NASDAQ: SLNH), operating through its subsidiary Soluna Computing, Inc., is on a mission to make renewable energy a global superpower, using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing-intensive, batchable applications such as cryptocurrency mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines, enabling clean electricity asset owners to ‘Sell. Every. Megawatt.’ For more information, please visit solunacomputing.com or follow Soluna on LinkedIn and X (formerly Twitter).
About Spring Lane Capital:
Spring Lane Capital is a private equity firm based in Boston, MA, and Montreal, QC, focused on providing hybrid project capital for sustainability solutions in the energy, food, water, waste, and transportation industries. The firm’s structured financial model seeks to tap into some of the fastest-growing segments of these markets that more traditional forms of project capital cannot access due to their scale and the limitations of existing investment models – the so-called ‘Missing Middle’. For more information, please visit www.springlanecapital.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Other examples of forward-looking statements may include, but are not limited to, statements of Soluna’s plans and objectives, including with respect to use of proceeds from the SLC financing, the development of Project Kati and our expectations with respect to the amount of renewable energy capacity Project Kati will deliver. Soluna may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.
Compiled by CMO Intern team
