Crypto Mining Data Center Soluna Stock Surges After $14M Investment Deal

Deal will help Soluna to be cash flow positive during the second half of this year.

AccessTimeIconMay 15, 2023 at 6:50 p.m. UTC

The shares of crypto mining data center Soluna Holdings (SLNH) rose about 12% on Monday, after the firm said it will get $14 million in funding to finish the development of Project Dorothy 1B in Texas, under a new deal with Navitas Global.

The deal includes a $2 million loan to complete construction of the 25 megawatt (MW) site and a $12 million equity investment, the company said in a press release on Monday. Soluna will provide operations and maintenance expertise and will remain 51% owner of the project.

  • Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
    15:03
    Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
  • What's the Biggest Misconception People Have About Bitcoin Mining?
    00:39
    What's the Biggest Misconception People Have About Bitcoin Mining?
  • What You Need to Know About the Bitcoin Halving
    01:47
    What You Need to Know About the Bitcoin Halving
  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • "This partnership together with recent deals at Project Dorothy 1A and Project Sophie put the company on a trajectory to reach cash flow positive during the second half of 2023," the statement said.

    After a long crypto winter that saw capital dry up for miners, the industry seems to be getting back on its feet as the price of bitcoin has almost doubled this year. The shares of the data center firm has fallen about 22% this year, underperforming pure-play mining firms and bitcoin price.

    Edited by Aoyon Ashraf.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Read more about