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ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ: SLNH), a developer of green data centers for computing applications such as Bitcoin mining and AI, has announced the powering up of Project Dorothy 2, which increases its Bitcoin hosting capacity by 60% to 123 megawatts (MW). The company expects the initial phase of the project to be fully operational by Q4 2025. The announcement comes as the company, currently valued at $5.76 million in market capitalization, seeks to reverse its challenging market performance, with the stock down 78% year-to-date according to InvestingPro data.
The expansion is part of Soluna's broader updates and developments, which include securing a $5 million non-dilutive debt financing from Galaxy Digital, with a five-year term and limited recourse to the parent company. While this financing demonstrates institutional interest, InvestingPro analysis reveals the company faces financial challenges with a weak health score of 1.57 out of 10 and negative EBITDA of $31.75 million in the last twelve months. The company's current ratio of 0.28 indicates potential liquidity concerns.
Additionally, Soluna has been awarded its second utility patent, which enhances the scope of its Modular Data Center patent, a critical aspect of the company's focus on thermal efficiency and conversion of wasted energy into computing power.
Soluna has also strategically terminated its contract with Hewlett Packard Enterprise Company (HPE) and continues to engage with shareholders and potential investors through its Ask Me Anything (AMA) series and its Clean Integration podcast, which discusses the environmental impact of AI and changes within the industry.
The company's Project Dorothy 1A and 1B, which focus on Bitcoin hosting and prop-mining, respectively, have shown strong hashrate growth, and the site has met the ancillary services requirements for Q1 2025. Project Sophie has completed a 2 MW deployment and plans an additional 3.3 MW fleet upgrade in May. Project Kati, under development for Bitcoin hosting and AI applications, is progressing with an 83 MW substation upgrade expected to be completed in May.
Soluna's partnership growth is exemplified by the third expansion with a hyperscale partner at Project Sophie and nearly completed negotiations for 48 MWs with new partners for Project Dorothy 2, set for April – September 2025.
The company has received positive feedback from key market players at the annual Mining Disrupt conference, highlighting Soluna's capability to meet the growing market demand for hosting services.
These forward-looking statements are based on the company's current assumptions and expectations regarding future events and are subject to risks as outlined in its SEC filings, including its Annual Report on Form 10-K filed on March 31, 2025. Investors should note that despite challenges, the company achieved impressive revenue growth of 80.49% in the last twelve months. InvestingPro subscribers have access to 13 additional key insights and detailed financial metrics to better assess the company's potential.
This report is based on a press release statement from Soluna Holdings, Inc. and provides an overview of the company's recent developments and future projects in the field of renewable energy-powered computing.
In other recent news, Soluna Holdings has announced a significant development in its operations with the signing of a term sheet for a 120 MW data center project, Project Hedy, in South Texas. This project, co-located with a 200 MW wind farm, will enhance Soluna's capacity to over 598 MW across various stages of operation and development. Additionally, Soluna Holdings has partnered with Luxor Technology Corporation to improve BitMine Immersion Technologies' mining efficiency, resulting in a tripling of BitMine's ASIC fleet's hashrate. The collaboration is highlighted in a case study that underscores the integration of power, infrastructure, and financial services.
Soluna Holdings also hosted an "Ask Me Anything" session with its management team, providing insights into the company's operations and future plans. This session reflects the company's commitment to transparency and direct communication with stakeholders. Furthermore, Soluna has made strides in its AI and Bitcoin mining projects, including securing a land purchase agreement for Project Rosa and expanding its partnership with Bit Digital. In another development, Soluna Cloud, a subsidiary of Soluna Holdings, is powering Atlas Cloud's AI service, DeepSeek R1, in North America, addressing data sovereignty and performance demands.
These recent developments highlight Soluna Holdings' ongoing efforts to leverage renewable energy for high-performance computing applications. The company continues to focus on expanding its capacity and enhancing operational efficiency through strategic partnerships and innovative projects.
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