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NEW YORK - Soluna Holdings, Inc. (NASDAQ:SLNH), a micro-cap company with a market value of $7.5 million and shares trading near $0.55, has renewed and expanded its partnership with Compass Mining, according to a press release statement issued Monday. According to InvestingPro data, the stock has seen significant volatility, declining over 92% in the past year.
The agreement includes a contract renewal at Soluna’s Project Dorothy 1 site and an expansion into the adjacent Project Dorothy 2 site, representing a total deployment of approximately 13 megawatts (MW) of computing capacity across both locations.
Compass Mining, which first deployed at Project Dorothy 1 in 2023, will maintain its existing buildings while adding 8 MW of capacity at Project Dorothy 2. This expansion fills the first phase of Project Dorothy 2, Soluna’s next-generation site.
"Compass Mining was one of the first to bet on us," said John Belizaire, CEO of Soluna, a developer of green data centers for intensive computing applications including Bitcoin mining and AI.
Paul Gosker, CEO of Compass Mining, noted that the expansion will allow the company to staff and operate the new capacity themselves, which aligns with their strategy to deliver services for their customers.
Project Dorothy, named after computing pioneer Dorothy Vaughan, is located in West Texas and designed to consume excess wind energy.
Soluna’s business model involves developing data centers co-located with renewable energy sources to support computing applications. The company operates facilities alongside wind, solar, or hydroelectric power plants to provide computing resources for applications including Bitcoin mining and generative AI.
The financial terms of the agreement were not disclosed in the announcement. InvestingPro analysis indicates the company faces significant financial challenges, with a WEAK overall financial health score. For investors seeking deeper insights, InvestingPro offers 12 additional ProTips and comprehensive financial metrics to better understand Soluna’s position in the market.
In other recent news, Soluna Holdings, Inc. has secured $20 million in financing from Spring Lane Capital for the 35-megawatt phase of Project Kati, with the possibility of up to $100 million in additional project-level capital. The company reported first-quarter revenue of $5.9 million and is developing 220MW of new projects, including Project Annie, its first solar-powered data center. Soluna has also expanded its hosting agreement with Blockware by 3 megawatts at Project Dorothy 2 in Texas, increasing Blockware’s contracted capacity to 8 MW. In other developments, Soluna received a notice from Nasdaq due to its stock not meeting the minimum bid price requirement, with a deadline of November 2025 to regain compliance.
The company continues to advance its green data center projects, with Project Dorothy 2’s first phase nearing completion and Project Kati securing necessary approvals for its construction. Soluna’s Project Sophie has achieved a milestone of 1.0 EH/s in computing power, while Project Hedy, a new 120MW wind-powered data center, is set to enhance Soluna’s presence in the ERCOT market. The company is also addressing weather-related impacts at its Project Dorothy 1A and 1B sites by preparing active cooling measures. Despite these challenges, Soluna is actively negotiating new contracts and partnerships, signaling ongoing growth in its sustainable computing initiatives.
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