Soluna expands partnership with Galaxy Digital for 48 MW deployment

NEW YORK - Soluna Holdings, Inc. (NASDAQ:SLNH) announced on Tuesday an expanded partnership with Galaxy Digital Inc. (NASDAQ/TSX:GLXY), a $10.7 billion market cap digital asset firm whose stock has surged 190% over the past year, that will see Galaxy deploy bitcoin mining operations at a 48 MW expansion of Soluna’s Project Kati 1 in Texas. According to InvestingPro analysis, Galaxy Digital currently trades near its 52-week high of $32.81, with additional insights available in the comprehensive Pro Research Report.

The expansion brings Project Kati 1 to its full capacity of 83 MW, with construction expected to begin before the end of August after clearing tax abatement approvals. The project is scheduled to become operational in Q1 2026.

Under the agreement, Galaxy will relocate bitcoin mining equipment previously housed at their Helios datacenter campus in the Texas panhandle to Soluna’s facility. Galaxy will be the first customer to begin mining operations at Project Kati 1 once construction is complete.

"As we transition our Helios campus to an AI and high-performance computing data center, we’re pleased to relocate a portion of our existing Bitcoin mining assets to Soluna to manage," said Sam Kiernan, Business Development Lead at Galaxy.

The companies had previously established a financial relationship when Soluna entered into a $5 million loan facility with Galaxy in Q1 2025. This new agreement represents Soluna’s largest deployment with a single partner to date, following a recent 30 MW rollout with another bitcoin miner.

John Belizaire, CEO of Soluna, stated that the partnership "underscores how our modular approach allows us to deliver efficient, renewable-powered infrastructure at scale."

According to the press release, once fully deployed, this expansion will bring Soluna’s total operating capacity to 206 MW. The company develops green data centers for computing-intensive applications, including bitcoin mining and artificial intelligence.

In other recent news, Galaxy Digital Inc. reported a strong adjusted gross profit of $299 million for the second quarter of 2025. Despite this robust financial performance, analysts at Rosenblatt lowered their price target for Galaxy Digital to $35 from $36, citing a weaker-than-expected overall performance for the quarter. However, they maintained a Buy rating, indicating optimism about the company’s future prospects due to "clear progress and encouraging trends."

Additionally, Galaxy Digital announced a strategic partnership with Mill City Ventures III, Ltd. to manage a substantial $450 million SUI treasury, marking it as the largest of its kind on public markets. This partnership includes Galaxy Digital’s participation in a $450 million private placement to fund the treasury initiative. Furthermore, Galaxy Digital appointed Matt Friedrich as its new Chief Legal Officer, effective September 8, 2025. Friedrich will oversee global legal and compliance matters, reporting directly to CEO Mike Novogratz. These developments reflect Galaxy Digital’s ongoing strategic initiatives and leadership changes.

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