SLNH has an over 1 GW pipeline, on par with BITF, however a market cap only a fraction of the dimensions. With an as much as $100M credit score facility for knowledge heart buildout, might Soluna be a child IREN within the making?
The next visitor publish comes from BitcoinMiningStock.io, a public markets intelligence platform delivering knowledge on firms uncovered to Bitcoin mining and crypto treasury methods. Initially revealed on Sept. 24, 2025, by Cindy Feng.
Whereas I’ve coated a couple of main HPC/AI pivots and offers from public Bitcoin miners, fairly a couple of followers have more and more pointed me towards a lesser-known identify: Soluna Holdings (NASDAQ: SLNH). The argument? It’s a microcap participant with what seems to be an enormous power pipeline (> 1GW), constructing HPC knowledge facilities and, most just lately, a $100 million credit score facility to fund Venture Kati – its next-generation renewable-powered web site meant to serve each Bitcoin mining and AI clients.
$SLNH surged 94.44% on September 22, 2025, following a pointy transfer that started late final week.
Some imagine Soluna might comply with the same path to IREN or CIFR: shares largely underpriced till the market realizes its enormous HPC/AI potential. However let’s transfer past hypothesis. The query is does the hype maintain up when piecing collectively scattered details?
Let’s dive in!
Soluna’s Infrastructure Footprint: Over 1 GW in Play
Soluna Holdings is a U.S.-based developer of modular inexperienced knowledge facilities, particularly designed for intensive computing purposes like Bitcoin mining and AI workloads. The corporate positions itself as a bridge between underutilized renewable power property and compute demand.
Screenshot from Soluna’s Investor presentation
It at present operates or is constructing a variety of modular websites throughout Texas and the U.S., most of them co-located with renewable era. As of Q2 2025, Soluna claimed a complete clear power pipeline of two.8 GW, with a 1.023 GW subset targeted on near-to-mid-term improvement. That places them in the identical capability league as Bitfarms (1.2 GW)* – however with a market cap that, till just lately, was practically 1.5/one hundredth of the latter.
*Regardless of reporting the same vary of power capability, Soluna had 3.345 EH/s of put in hash fee as of August 2025 (with 0.526 EH/s devoted to self-mining), in comparison with Bitfarms’ 19.5 EH/s.
Right here’s a breakdown of Soluna’s challenge portfolio primarily based on public disclosures:
Venture Kati is Soluna’s largest web site so far and marks a transparent transfer past Bitcoin mining into AI and high-performance computing (HPC) infrastructure. The positioning is structured as a two-phase, 166 MW buildout.
Building of Kati 1 (83 MW) started in September 2025 and is anticipated to be operational in early 2026. Of this, 48 MW has already been leased to Galaxy Digital below a internet hosting settlement, whereas the remaining 35 MW is reserved for Soluna’s personal Bitcoin internet hosting purchasers.
Venture Kati broke floor (media supply)
The second section, Kati 2, will add one other 83 MW and is purpose-built to help AI and high-performance computing (HPC) workloads. This enlargement, together with different knowledge heart buildout plans, positions Soluna as an rising infrastructure supplier for the AI economic system.
The market seems to begin pricing in Soluna’s HPC/AI pivot, particularly following the announcement of Soluna’s $100 million credit score facility.
$SLHN has been going up since because the announcement of its $100M credit score facility on September 16, 2025
The $100 Million Credit score Facility: Capital Comes at a Price
In September 2025, Soluna introduced a credit score facility of as much as $100 million from Generate Capital, a lender recognized for backing sustainable infrastructure. For a corporation with $6.15 million in quarterly income and $9.85 million in unrestricted money, the deal marks a major step ahead in securing long-term challenge funding. However whereas the headline determine is substantial, the construction of the settlement is layered with milestones and circumstances that form how and when the capital turns into out there.
Of the full facility, $35.5 million is at present dedicated. This contains an preliminary $12.6 million draw used to refinance Dorothy 1A and Dorothy 2, in addition to an additional $22.9 million to help continued improvement of Dorothy 2 and the primary section of Venture Kati. The remaining $64.5 million is uncommitted, which can be made out there at Generate’s discretion, relying on future milestones and efficiency. Briefly, the headline determine is a ceiling, not a assure.
Unlocking the capital isn’t low-cost. The mortgage carries an rate of interest of SOFR + 10%, with a minimal SOFR flooring of three.50%, leading to a beginning rate of interest of no less than 13.5%. Alternatively, Soluna could select to borrow at an ABR + 9% fee. That fee alone can be thought of aggressive. On prime of that, Soluna pays a 1% annual payment on unused funds in sure tranches, which suggests the clock begins ticking whether or not the cash is deployed or not. Even when Soluna by no means touches the remaining facility, holding it out there comes at a price.
Then there are the restrictions. The funds are ring-fenced and should solely be used for 3 particular property: Dorothy 1A, Dorothy 2, and Venture Kati. Likewise, the collateral is project-level. Generate Capital has first declare over the borrowing entities’ fairness, property, money accounts, and actual property; however notably excludes any assure from Soluna’s guardian entity. This setup limits the corporate’s legal responsibility past the initiatives whereas giving Generate clear enforcement paths tied to challenge efficiency.
The deal additionally contains monetary covenants designed to watch ongoing viability. Soluna should keep a trailing debt service protection ratio (DSCR) of no less than 1.60x and a ahead contracted DSCR of no less than 1.20x. These protection exams are normal for challenge finance and goal to make sure that project-level money flows stay ample to cowl scheduled debt obligations.
Alongside the mortgage, Generate additionally obtained equity-linked incentives within the type of two tranches of warrants: a pre-funded warrant for as much as 2 million shares at a near-zero strike value and a typical warrant for one more 2 million shares at $1.18. Each are instantly exercisable over a five-year time period, with a 9.99% cap on possession to keep away from triggering disclosure thresholds. Such a construction offers Generate a long-term stake in Soluna’s future but additionally introduces dilution danger.
All informed, it is a traditional case of equity-linked infrastructure financing designed for high-risk, high-upside situations. The construction offers Soluna a crucial runway to refinance present property and fund development of its flagship buildouts. In the meantime, it introduces new layers of value, oversight, and milestone-based circumstances. For a corporation with restricted conventional financing choices, the deal may very well be a high-leverage development enabler. However it additionally places Soluna on a decent leash. Execution is now non-negotiable. If Soluna stumbles, the lender holds each the capital and the management levers.
Closing Ideas
The bull thesis on Soluna is easy: if administration delivers on Kati 1 and efficiently transitions into high-margin AI internet hosting with Kati 2, the corporate might unlock predictable recurring income at a scale not beforehand seen in its historical past.
Assuming $1.5M annualized income per MW for AI/HPC workloads, a tough benchmark primarily based on peer disclosures point out Kati 2 might ultimately generate $124M at full capability (83 MW × $1.5M). That’s practically 20x Soluna’s present quarterly run fee. For a corporation with a sub-$100M market cap, the upside is clearly transformative.
However the draw back danger is equally vital. Generate Capital’s mortgage phrases depart little or no room for error. Any slip up, whether or not it’s a missed DSCR covenant, development delay, or underperformance, might set off penalties, asset loss, or dilution by way of warrant workout routines or emergency fundraising.
In impact, Soluna has positioned a high-conviction guess on its capability to execute.
Greatest case: it follows the trail of IREN or CORZ, scaling right into a respectable HPC infrastructure participant with diversified income and strategic relevance.
Worst case: tight covenants and excessive debt prices choke the corporate earlier than its initiatives mature.
Hypothesis round potential JVs or M&A could maintain investor curiosity elevated. A current tweet from the CEO hinted at inbound curiosity from hyperscale miners, energy plant house owners, and infrastructure funds:
At @SolunaHoldings We’re ripe for the selecting…
Like a ripe apple 🍎 throughout harvest time.
We’re picked by the highest Hyperscale miners.
We’re picked by the highest Energy Plant house owners.
We’re picked by the highest Infrastructure Funds.
With over 1GW clear computing initiatives in… pic.twitter.com/ARn4GYybPj
— John Belizaire (@jbelizaireCEO) September 22, 2025
There’s no public affirmation of offers from “prime hyperscale miners”, however with Galaxy Digital as an anchor tenant and Generate Capital on board as a lender, the inspiration is being laid for future partnerships.
Both manner, Soluna has entered a high-stakes section. The credit score facility buys it time, not certainty.
For now, the 94% spike displays investor enthusiasm. What comes subsequent will rely upon execution.
