Soluna Holdings announces at-the-market offering agreement

Soluna Holdings, Inc. (NASDAQ:SLNH), a finance services company with a market capitalization of $10.13 million, disclosed on Monday an at-the-market offering agreement that could potentially raise up to $3.75 million through the sale of common stock. According to InvestingPro data, the company has been quickly burning through cash, with a concerning current ratio of 0.28. The agreement, made with H.C. Wainwright & Co., LLC, allows the company to offer and sell shares of its common stock from time to time at its discretion.

The shares will be offered pursuant to Soluna Holdings’ shelf registration statement and a prospectus supplement, both filed with the U.S. Securities and Exchange Commission (SEC). The firm is not obligated to sell any shares and will only do so according to its instructions, which may include price, time, or size limits.

Under the terms of the agreement, H.C. Wainwright & Co. will endeavor to sell the shares on the Nasdaq Capital Market, following customary practices and regulatory requirements. They will receive a commission of 3.0% of the gross proceeds from each sale and be reimbursed for certain expenses, with a cap on legal fees.

This offering provides Soluna Holdings with a flexible financing option to support its operations and growth initiatives, which have shown promise with revenue growth of 80.49% in the last twelve months despite an EBITDA of -$31.75 million. The company has stated that this report does not constitute an offer to sell or a solicitation of an offer to buy any shares. For deeper insights into Soluna’s financial health and growth prospects, InvestingPro subscribers have access to over 10 additional key metrics and analysis tools.

The information in this article is based on a press release statement.

In other recent news, Soluna Holdings, Inc. has made significant strides in expanding its operations and projects. The company has announced the powering up of Project Dorothy 2, which increases its Bitcoin hosting capacity by 60% to 123 megawatts, with expectations for full operation by the fourth quarter of 2025. Soluna also secured $5 million in non-dilutive debt financing from Galaxy Digital (TSX:GLXY), highlighting its strong project-level cash flows. Additionally, Soluna has entered into a term sheet agreement for a 120 MW data center project, named Project Hedy, in South Texas, co-located with a 200 MW wind farm. This development aims to enhance the efficiency of renewable energy assets by integrating high-intensity computing.

Soluna Holdings has also partnered with Luxor Technology Corporation to boost BitMine’s mining capabilities, significantly increasing its ASIC fleet’s nameplate hashrate. This collaboration has set a new standard for Bitcoin mining efficiency by integrating power, operations, and financial strategy. Furthermore, the company has secured two land parcels for its Project Kati in Texas, marking a significant step toward constructing a 166 MW data center for high-performance computing applications. Soluna’s recent "Ask Me Anything" session with its management team provided insights into the company’s operations and future plans, reflecting its commitment to transparency. These developments underscore Soluna’s focus on expanding its renewable energy-powered computing infrastructure.

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