Soluna secures $30M for data center expansion

Published 07/08/2024, 14:34
Soluna secures $30M for data center expansion

ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ: SLNH), a company specializing in green data centers for high-intensity computing, has announced significant corporate and site-level developments, including securing $30 million for the expansion of its flagship data center.

The company, in collaboration with Hewlett Packard Enterprises (HPE), is now offering at least 512 H100 SXM GPUs through Soluna Cloud to support generative AI workloads. This move aligns with Soluna's strategy to provide sustainable enterprise AI solutions.

Further bolstering its AI capabilities, Soluna Cloud has raised an additional $1.25 million, bringing the total funding to $13.75 million. This investment is aimed at enhancing customer experiences and supporting the training, tuning, and customization of small and large language models (LLMs).

A significant corporate highlight was the $30 million funding led by Spring Lane Capital for Project Dorothy 2. This 48 MW expansion of Soluna's data center is a step towards increasing the company's capacity for behind-the-meter operations.

CEO John Belizaire has been actively engaging with industry leaders, recently attending an executive panel in New York City and preparing to speak at the upcoming 2024 Ai4 Conference in Las Vegas on August 14.

On the operational front, Project Dorothy has completed infrastructure optimizations to withstand severe summer heat and has generated over $1.1 million in revenue through ancillary services in the first half of the year.

Project Dorothy 2 is moving forward with construction contracts executed and power partner approvals in place. At Project Sophie, fleet upgrades have been completed to improve efficiency for Bitcoin hosting and AI hosting services. Additionally, Project Kati is advancing with a key study resubmission to ERCOT and negotiations for a site land lease.

Soluna's recent achievements reflect its commitment to integrating renewable energy sources with computing power, aiming to energize a greener grid while delivering sustainable computing solutions. The company's proprietary software, MaestroOS™, plays a crucial role in this endeavor.

This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. The information provided is current as of the date of the announcement, and Soluna Holdings, Inc. does not undertake any obligation to update the information, except as required by law.

In other recent news, Soluna Holdings has secured a $34 million cloud services agreement with Hewlett Packard Enterprise Company (NYSE:HPE) and raised a $12.5 million credit facility for its subsidiary, Soluna Cloud, in an effort to expand its green data center services. The company anticipates these developments could generate up to $80 million in revenue over the next three years. Soluna Cloud has also boosted its credit facility to $13.75 million, with the additional funds set to support growth initiatives in the AI sector.

These recent developments have been advised by BitOoda Technologies and Imperial Capital. Soluna Holdings has also reduced its convertible loan note balance from $7.7 million to $4.5 million, resulting in an increase in common shares issued and outstanding. Furthermore, the company has entered into a 166 MW Power Purchase Agreement with EDF (EPA:EDF) Renewables and Masdar for Project Kati in Texas.

In other operational updates, Soluna Holdings continues to make strides with its various projects, including Project Dorothy, Project Sophie, and Project Kati. The company has also appointed John Tunison as its new Chief Financial Officer, marking another step in its ongoing expansion efforts.

InvestingPro Insights

As Soluna Holdings, Inc. (NASDAQ: SLNH) continues to make strides in the high-intensity computing space with its green data center expansions, recent real-time data from InvestingPro offers insights into the company's financial health and stock performance. Despite the positive developments, Soluna Holdings faces some financial challenges, according to InvestingPro data. The company's market capitalization stands at a modest $23.41 million, reflecting the size of the company in the broader market landscape.

InvestingPro data indicates a significant revenue growth of 36.84% over the last twelve months as of Q1 2024, showcasing the company's expanding operations and market reach. However, this growth comes with financial caveats, as Soluna Holdings is not profitable over the last twelve months, with an adjusted operating income of -$12.33 million, signaling that expenses are outpacing revenues.

InvestingPro Tips highlight that Soluna Holdings' stock has experienced considerable price volatility, with a notable 15.86% drop over the last week and a 27.38% decline over the last month. This volatility could be a point of concern for investors seeking stability, as it reflects the market's reaction to the company's financial position and future prospects. Moreover, the stock's performance over the last three months shows a strong return of 79.01%, indicating potential for recovery and growth. Investors interested in the detailed analysis can find additional tips on InvestingPro, which currently lists 11 more tips for Soluna Holdings, Inc.

These financial metrics and stock performance insights are crucial for investors considering Soluna Holdings as part of their investment portfolio. With the company's next earnings date set for August 14, 2024, stakeholders will be keenly watching for signs of improvement in profitability and continued growth in revenue.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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