Soluna Raises $35M From Spring Lane Capital to Build Green Data Centers for Crypto, Machine Learning

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) has secured $35 million in project financing from Spring Lane Capital, bringing its total funding for green data centers to $100 million. The funds will support the development of three innovative projects that convert wasted renewable energy into computing resources, including bitcoin mining. The first project, named Dorothy, will begin operations later this summer and generate 25-50 skilled jobs. This strategic partnership aims to enhance clean energy utilization while providing a scalable model for green data centers.

Positive

• Secured $35 million in project financing, total funding now at $100 million.
• Three projects to be developed that utilize wasted renewable energy.
• First project, Dorothy, expected to create 25-50 skilled jobs.

Negative

• None.

This announcement brings Soluna’s total funding for data centers co-located with renewable energy assets to $100 million; doubles employee headcount.

ALBANY, NY, May 12, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), secured $35 million in project financing to develop green data centers co-located with renewable energy assets. Spring Lane Capital, a private equity firm, invested private funds in Soluna as a part of their strategy focused on hybrid project capital for sustainability solutions in the energy, food, water, waste and transportation industries. The capital will help develop three behind-the-meter (BTM) projects designed to convert wasted renewable energy into clean computing services such as bitcoin mining and artificial intelligence.

“Soluna is the only true green bitcoin company we’ve yet seen,” said Rob Day, Spring Lane Capital Partner and Co-Founder. “Going after wasted renewable energy – ‘spilled power’ – is a compelling solution – and fixes both bitcoin’s climate problem and wind power’s grid problem.”

Michael Toporek, CEO of Soluna Holdings, Inc. said, “Consistent with our previously articulated strategy, we continue to pursue opportunities that we believe enable us to optimize our cost of capital. The Spring Lane Capital approach helps us develop a mature repeatable model that can be scaled.”

The first of the three projects, Dorothy, named in honor of African American mathematician and human computer Dorothy Vaughan, is expected to be energized later this summer and coincide with the launch of a local STEM program. The Dorothy project is a 100 MW data center with a 50 MW initial phase, connected to a Texas wind farm that produces more electricity than the grid can consume. Soluna’s data center is currently estimated to create between 25 to 50 highly skilled jobs for technicians, security and electrical staff.

The other two projects funded by the new capital will come from Soluna’s robust pipeline.

John Belizaire, CEO of Soluna Computing, Inc., said, “We are honored to have a pioneering sustainability project finance firm like Spring Lane Capital back our vision. Our model of leveraging excess clean energy to generate low-cost computing is the future of green bitcoin mining and green data centers.”

Spring Lane Capital has a successful track record helping sustainable technology companies raise capital to build flagship projects. Their ‘hybrid project capital’ approach provides project equity along with additional growth capital.

Added Day: “Soluna is driving demand for clean power by giving a floor price and improving the bottom line of the renewable power partners they work with. The ultimate result is more wind farms and solar farms that would not otherwise be built.”

At power plants like the wind farm where the Dorothy project is under construction, excess energy is wasted when the grid becomes overloaded or demand is too low. Soluna’s scalable solution allows every excess megawatt to be used for batch-oriented, computing-intensive processes, such as cryptocurrency mining and machine learning. Additionally, flexible demand consumers help stabilize the grid by preventing power overload, which can otherwise lead to blackouts and grid malfunction.

Last month, Soluna Holdings (SCI’s Computing’s parent company), sold its Albany-based MTI Instruments subsidiary for $10.75 million, expanding its focus on helping the modern grid absorb more renewable energy through flexible green data centers.

About Soluna Holdings, Inc.

Soluna Holdings, Inc. (Nasdaq: SLNH), which operates through its subsidiary, Soluna Computing, Inc. is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing-intensive, batchable applications such as cryptocurrency mining, AI and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’

For more information about Soluna, please visit solunacomputing.com or follow us on LinkedIn and Twitter.

Investor Relations:
Kirin Smith, President 
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com

Media contact:
Bridgette Borst Ombres, Tigercomm
bombres@tigercomm.us
(304) 546-3788

FAQ

What is the total funding secured by Soluna Holdings as of May 2022?

As of May 2022, Soluna Holdings has secured a total funding of $100 million for its green data centers.

What are the main projects funded by Soluna Holdings in 2022?

The main projects funded include three behind-the-meter projects designed to convert wasted renewable energy into clean computing services.

What is the expected impact of the Dorothy project by Soluna Holdings?

The Dorothy project is expected to begin operations later this summer and create between 25 to 50 skilled jobs.

Which firm invested in Soluna Holdings for their sustainability projects?

Spring Lane Capital invested in Soluna Holdings as part of their strategy focused on hybrid project capital for sustainability solutions.

How does Soluna Holdings plan to utilize excess renewable energy?

Soluna Holdings plans to utilize excess renewable energy for computing-intensive processes, including bitcoin mining and AI.