Soluna Closes $20M Investment from Spring Lane Capital to Kick Off Texas Project Kati 1 Construction

ALBANY, N.Y. —Soluna Holdings, Inc. (NASDAQ: SLNH), a developer of green data centers for high-performance computing workloads such as Bitcoin mining and artificial intelligence, announced it has closed a $20 million round of project-level funding from Spring Lane Capital (“SLC”) to launch construction on Project Kati 1, the first 35 megawatts (MW) phase of a major expansion at its Project Kati site in Texas.

With this latest round, Soluna plans to break ground on Project Kati 1 in the third quarter of 2025, aiming for initial energization and computing operations by the first quarter of 2026.

“Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy,” said John Belizaire, CEO of Soluna. “We expect these funds to fuel the construction of the first 35MW of the 83MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting.”

The $20 million in financing is structured to fully cover the project’s construction and startup costs, including working capital needs. Project Kati 1 will follow Soluna’s established waterfall structure, which the company says provides enhanced returns through superior management fees and development income during both the build and operational phases.

Once operational, the new facility will support approximately 12,000 next-generation Bitcoin mining machines, boosting Soluna’s hosting capacity at a time when demand for green, cost-effective computing power is on the rise.

SLC’s backing continues a broader financial commitment to Soluna’s mission of transforming surplus renewable energy into computing resources. Under a wider agreement, SLC has committed up to $100 million in additional capital for Soluna’s future sites focused on Bitcoin hosting and AI workloads, subject to meeting certain development milestones.

The latest investment comes from Spring Lane Capital Fund II, the firm’s second private equity fund, which is double the size of its inaugural fund. As part of this phase, SLC is also prepared to provide up to $4 million in Development Expenditure (DevEx) financing for securing long-lead equipment needed for Project Kati 1’s buildout.

Project Kati 1 has already cleared key regulatory hurdles, with all necessary ERCOT (Electric Reliability Council of Texas) planning approvals secured. An updated ERCOT model will be filed at least 90 days before energization to finalize grid integration.

“We continue to invest in and be strategic supporters of Soluna because they continue to take steps toward sustainable high-performance computing and meeting green data center demand,” said Rob Day at Spring Lane Capital. “We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”

Soluna’s Texas expansion builds on its approach of co-locating data centers with renewable energy plants, using surplus wind or solar power that would otherwise go to waste to run compute-intensive operations like Bitcoin mining and AI model training. The company’s proprietary software, MaestroOS™, helps match fluctuating renewable generation with computing loads, stabilizing the grid and boosting sustainability.

As more AI workloads and crypto operations drive up global demand for energy-intensive computing, Soluna and its investors see an opportunity to grow a green, flexible data center network that supports grid resilience while delivering competitive hosting costs and clean energy integration.

Originally reported by Business Wire.