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ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ:SLNH), a micro-cap green data center developer with a market capitalization of $11.62 million, has expanded its Project Dorothy 2 data center and increased its long-term power pipeline to 2.8 gigawatts (GW), according to a company statement released Thursday. InvestingPro analysis suggests the stock is currently undervalued, despite showing high price volatility with a beta of 3.69.
The green data center developer secured $20 million from Spring Lane Capital to launch Project Kati 1, with construction scheduled to begin in the third quarter of 2025. Spring Lane has committed to support up to $100 million across Soluna’s project pipeline. This funding comes at a crucial time, as InvestingPro data shows the company is quickly burning through cash with a concerning current ratio of 0.33, indicating potential liquidity challenges. For deeper insights into Soluna’s financial health and 11 additional ProTips, consider exploring InvestingPro’s comprehensive analysis.
Soluna also announced expansions with two existing partners. Blockware increased its deployment at Project Dorothy 2 by over 50%, bringing its total sustainable hosting capacity at the site to 8 megawatts (MW). Compass Mining renewed and expanded its partnership to span 13 MW across the Dorothy campus.
Project Dorothy 2, currently under construction with 48 MW capacity for Bitcoin hosting, is progressing in three phases of 16 MW, 14 MW, and 18 MW. Power commissioning has begun for the second phase and is expected to be completed by month-end, ahead of the planned early August substantial completion date.
The company reported that Project Dorothy 1A and 1B, each with 25 MW capacity, have maintained over 90% uptime despite extreme heat conditions. Project Sophie, a 25 MW facility for Bitcoin and AI hosting, has completed a fleet expansion for an existing customer.
For Project Kati, which has 166 MW under development, ERCOT completed modeling for Phase 1 (83 MW), which reached its Production Load Date on July 2. Construction contracting is underway, with the project expected to be built in at least two phases, including a 35 MW phase.
Soluna’s long-term pipeline increased by 200 MW to reach 2.8 GW, driven by new curtailment assessments and active term sheet discussions. The company has also launched development activities on Projects Hedy, Ellen, and Annie.
The company stated that all Project Dorothy 2 pipeline contracting for 2025 has been completed, with the full 48 MW capacity marketed to both new and existing partners. While revenue showed modest growth of 2.87% in the last twelve months, the company’s overall financial health score remains weak at 1.74 out of 5, according to InvestingPro metrics, suggesting careful monitoring of project execution will be crucial for investors.
In other recent news, Soluna Holdings, Inc. announced a significant expansion of its partnership with Compass Mining, adding 13 megawatts of computing capacity at its Project Dorothy sites. This development includes both a contract renewal and new deployment at Project Dorothy 2. Soluna has also expanded its hosting agreement with Blockware, increasing capacity by 3 megawatts at the same site, now totaling 8 megawatts. The company secured a minimum of $20 million in financing from Spring Lane Capital for its Project Kati data center, with the possibility of extending up to $100 million in additional capital. Soluna’s first-quarter revenue reached $5.9 million, alongside the development of 220 megawatts of new projects. Additionally, Soluna launched phase 1 of Project Dorothy 2, with customer deployments already underway. In other corporate updates, Soluna received a notice from Nasdaq regarding its non-compliance with the minimum bid price requirement, giving the company until November 4, 2025, to regain compliance. Despite this, there is no immediate impact on the trading of Soluna’s common stock.
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