Soluna Receives $35M From Spring Lane to Build Green Data Centers

The money brings Soluna’s total funding for data centers co-located with renewable energy assets to $100 million.

AccessTimeIconMay 12, 2022 at 1:39 p.m. UTC
Updated May 12, 2022 at 2:03 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Soluna Holdings (SLNH), a data-center developer that uses renewable energy for computing, arranged $35 million in project financing from private equity firm Spring Lane Capital for building more facilities.

  • The money will help develop three behind-the-meter (BTM) facilities, designed to convert wasted renewable energy into clean computing for services such as bitcoin (BTC) mining and artificial intelligence, according to a statement.
  • “Soluna is the only true green bitcoin company we’ve yet seen,” said Rob Day, a Spring Lane 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.”
  • The first of the three projects, Dorothy, will be a 100 megawatt (MW) capacity data center connected to a Texas wind farm that produces more electricity than the grid can consume.
  • Energy from renewable sources, such as wind, sometimes overloads the power grid when the energy produced exceeds demand. Data centers like Soluna’s help manage the supply by running computing-intensive processes like crypto mining.
  • Dorothy will have 50MW of initial capacity and is expected to be activated in coming months.
  • The other two projects will “come from Soluna’s robust pipeline,” the statement said.
  • Soluna said the new capital brings total funding for data centers co-located with renewable energy assets to $100 million.
  • Most recently it closed a $29.2 million Series A preferred stock public offering and sold a business unit for $10.75 million.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

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