Soluna Secures $14 Million Investment Deal With Navitas For Its Data Center

Key Points:

• In a new agreement with Navitas Global, Soluna Holdings will receive $14 million in funding to complete the construction of Project Dorothy 1B in Texas.
• The agreement comprises a $2 million loan to finish the 25-megawatt (MW) plant and a $12 million equity investment.
• The crypto mining data center will offer operations and maintenance skills while remaining a 51% shareholder in the initiative.

Soluna Holdings, a Texas-based developer of green data centers for Bitcoin mining and other intense computing, has announced a $14 million investment collaboration with Navitas Global for its Project Dorothy 1B data center.

Navitas Global is a private data center-building firm that uses years of expertise and strong ties in the Bitcoin mining company to give investors with favorable profits.

Navitas joins Project Dorothy 1B as an investor and equity partner in the proprietary mining joint venture. In return for 49% interest in Project Dorothy 1B, Navitas will contribute investment cash for the last phases of infrastructure development and 25 Megawatt of Bitcoin miners.

The agreement comprises a $2 million loan to finish construction of the 25 megawatts (MW) facility and a $12 million equity investment, according to a news statement issued by the firm on Monday. Soluna will offer operations and maintenance expertise while maintaining a 51% stake in the project. This collaboration, together with recent acquisitions at Project Dorothy 1A and Project Sophie, puts the firm on track to become cash flow positive in the second half of 2023.

Soluna Holdings CEO John Belizaire stated:

“Navitas is a strong partner for Soluna now and long-term. The Navitas team not only understands the value of Bitcoin mining and having a reliable partner, but they also understand the long-term value of our infrastructure being interconnected to renewable energy power plants.”

After the announcement, the company’s stock climbed around 12% on Monday.

Following a protracted crypto winter in which cash dried up for miners, the sector seems to be reviving, with the price of Bitcoin almost doubling this year. The data center company’s stock has dropped over 20% this year, outperforming pure-play mining competitors and the Bitcoin price.

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