Spring Lane Increases Project Dorothy Stake in Exchange for a Total of $7.5 Million
Funding to Energize Project Dorothy Secured
ALBANY, N.Y.–(BUSINESS WIRE)–Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for Bitcoin mining and other intensive computing, announced today that it completed the final tranche of a series of project-level agreements for $7.5 million of fresh capital to fund the Dorothy project and corporate expenses from funds managed by Spring Lane Capital (“SLC”). On February 10, 2023, $1.2 million of the capital was funded and used for operations and construction. The remaining capital will be used to help complete the substation interconnection and the final stages of Project Dorothy, Soluna’s flagship project in West Texas, and corporate operations of Soluna. SLC has been a strategic partner for Soluna at the project and corporate levels of the business since 2022.
“We’re proud to partner with Soluna and to support their efforts to add value to renewables on the grid,” said Rob Day, Partner at Spring Lane Capital. “We’re excited to see the project nearing completion, and even beyond Project Dorothy we are grateful to have the chance to work with the team at Soluna as they pursue their vision.”
In this series of transactions, SLC has increased its stake in Project Dorothy 1A (the first 25 MW phase) from approximately 32% to 85%. Soluna continues to own 100% of Dorothy 1B (the second 25 MW phase). After SLC realizes an 18% IRR hurdle on its investments, Soluna retains the right to 50% of the profits on Dorothy 1A. This additional investment implies a total approximate estimated value of $30 million for Project Dorothy.
John Belizaire, CEO of Soluna Computing, stated, “Unlocking the mechanisms to make renewable energy a superpower is a shared goal by Soluna and Spring Lane Capital, which makes us strong partners. Through our relationship, we have seen the robust capabilities of the SLC team, and they have seen the strong team we have to execute in a challenging environment. We are excited to continue our partnership as we bring Project Dorothy to energization, and use this as a blueprint for future projects.”
Michael Toporek, CEO of Soluna Holdings, stated, “This additional investment by Spring Lane Capital is not only great for Project Dorothy but is a catalyst to bring in additional investment for our robust pipeline and has attracted top-tier Bitcoin miners to host at Project Dorothy.”
Additional details on the agreement can be found in the associated 8-k filing.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.
About Soluna Holdings, Inc (SLNH)
Soluna Holdings, 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 Bitcoin mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna uses technology and intentional design to solve complex, real-world challenges. 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.’
Soluna Holdings, Inc.