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ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ: SLNH), known for developing environmentally friendly data centers, has achieved a significant milestone by securing two land parcels for its Project Kati in Texas. This development, in partnership with EDF Renewables and Masdar, marks a key step towards the construction of a 166 MW data center site dedicated to high-performance computing (HPC) applications such as Bitcoin mining and potentially artificial intelligence (AI).
The company announced that the project will commence with an 83 MW phase, which is expected to enhance its Bitcoin hosting and joint venture opportunities within the HPC domain. InvestingPro analysis reveals that Soluna is currently operating with a concerning current ratio of 0.28, indicating potential challenges in meeting short-term obligations. Two key InvestingPro Tips highlight that the company is quickly burning through cash and trades with high price volatility, with 11 additional insights available to subscribers. The CEO of Soluna, John Belizaire, expressed that securing the land is pivotal for transitioning from vision to execution, emphasizing the project’s role in scaling sustainable Bitcoin and AI infrastructure.
In preparation for the construction set for 2025, Soluna is focusing on capital formation by inviting bids from potential investors, partners, and customers for a Bitcoin Hosting data center. Additionally, discussions for joint venture opportunities are underway for the development of an AI or HPC-centric data center at the site. The company has completed a site analysis for Tier-3 suitability, which includes environmental, energy, and connectivity considerations.
The completion of Project Kati’s first phase is anticipated to bring Soluna’s operating capacity to over 206 MW, further establishing its position in the renewable energy-powered computing sector. The project is named in honor of Katalin "Kati" Karikó, a scientist recognized for her contributions to mRNA-based therapies.
Finalization of the land deals is contingent upon reaching final agreements with Willacy County and Lyford School District regarding potential tax abatements and the structuring of the data center transaction, as well as Soluna’s due diligence. With an EBITDA of -$31.75 million and an overall Financial Health Score rated as WEAK by InvestingPro, investors should carefully monitor the company’s execution capability in this ambitious expansion.
This announcement is based on a press release statement and contains forward-looking statements regarding the project’s completion and its anticipated renewable energy capacity. Soluna Holdings, Inc. has not provided an update on the progress since the date of the press release.
In other recent news, Soluna Holdings, Inc. has made significant strides in expanding its capacity for Bitcoin hosting and AI applications. The company announced the powering up of Project Dorothy 2, which increases its Bitcoin hosting capacity by 60% to 123 megawatts, with full operation expected by Q4 2025. Soluna has also signed a term sheet for a new 120 MW data center project in Texas, named Project Hedy, which will be co-located with a 200 MW wind farm. This project is part of Soluna’s strategy to integrate computing with renewable energy sources.
In another development, Soluna has partnered with Luxor Technology Corporation to enhance BitMine Immersion Technologies’ mining efficiency, tripling its ASIC fleet’s hashrate. Additionally, the company secured a $5 million non-dilutive debt financing from Galaxy Digital, highlighting its ability to attract institutional financing. Soluna has terminated its contract with Hewlett Packard Enterprise Company and continues to engage with stakeholders through its Ask Me Anything sessions and Clean Integration podcast.
The company has also expanded its partnership with Bit Digital, surpassing 12 MW in hosting capacity, and secured a land purchase agreement for Project Rosa, promising up to 187 MW of sustainable energy. Recent projects, including Project Grace and Project Ada, have shown positive progress, with Project Grace receiving a high-efficiency engineering report and Project Ada launching a new AI service. These developments underscore Soluna’s commitment to leveraging renewable energy for high-performance computing applications.
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