Soluna’s Leap Forward: $14M Investment Boosts Crypto Mining Project
Crypto mining data center Soluna Holdings (SLNH) announced a significant investment deal that led to a surge in its shares by 12% on Monday. This development comes after an agreement with Navitas Global to fund Soluna’s Project Dorothy 1B in Texas. This partnership is set to inject $14 million into the project.
Under the terms of the deal, Soluna will receive a $2 million loan for the completion of the 25 megawatt (MW) site. Additionally, Navitas Global will make a $12 million equity investment into the project. Soluna will continue to provide operations and maintenance expertise while retaining 51% ownership of the project.
The company emphasized that this latest partnership, combined with recent deals at Project Dorothy 1A and Project Sophie, paves the way for Soluna. They are now on track to become cash flow positive in the second half of 2023. These deals could mark a turning point for the company, which has seen its shares decline by approximately 22% this year.
The crypto mining industry has been experiencing what’s been termed a 'crypto winter', characterized by dwindling capital for miners. However, with Bitcoin’s price nearly doubling this year, the industry appears to be reviving. Despite underperforming compared to pure-play mining firms, Soluna’s new partnership could represent a significant step forward in its recovery and growth.