New Construction to Begin in Q3 2025
Spring Lane to support up to $100M for pipeline
Soluna Holdings, Inc., a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, today announced financing from Spring Lane Capital (“SLC”) for a 35 megawatt (MW) phase of Project Kati, Soluna’s 2nd behind-the-meter data center project. Spring Lane Capital, a private equity firm providing hybrid project capital for sustainability solutions, has entered into a term sheet to lead the financing round with a commitment of at least $20 million.
Spring Lane Capital is also an investor in Projects Dorothy 1A and Dorothy 2 and has been an important supporter of Soluna’s efforts to accelerate the convergence of renewable energy and high-performance computing. In addition, Spring Lane Capital and Soluna signed an agreement to extend up to $100M of additional project-level capital for Soluna’s growing pipeline.
John Belizaire, CEO of Soluna Holdings, stated, “Spring Lane Capital has been a trusted and strategic partner throughout our growth. We’re proud to continue that momentum with Project Kati — a partnership on a facility that marks an exciting new phase for Soluna, with multiple projects moving forward in parallel. This investment accelerates our ability to deploy scalable, clean, compute where the energy grid needs it most.”
“Soluna continues to be at the forefront of converting otherwise curtailed or wasted renewable energy into clean computing solutions, particularly for crypto mining and AI applications, at a time when we need it most,” said Rob Day, Co-Founder and Partner, Spring Lane Capital. “We are proud to be an early and ongoing supporter of Soluna as they take another step toward sustainable high-performance computing and meeting green data center demand.”
- Soluna Unveils Initial Financing Plan for Project Kati 1: The financing will facilitate the construction of the first 35MW of the 83MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting.
- Financial Structure and Equity Ownership: Under the non-binding term sheet, Soluna expects to secure at least $20 million from SLC, fully covering the project’s funding needs, including working capital. Kati 1 continues the superior waterfall structure and enhanced management and development fees, allowing Soluna to benefit from substantial current income during the construction and operational phases.
- Construction Timeline: The parties intend to complete definitive documentation and commence Project Kati 1 construction in Q3 2025, with the goal of achieving initial energization and ramp-up by Q1 2026.
- Capacity and Technology: The new facility is designed to accommodate approximately 12,000 next-generation Bitcoin mining rigs.
- SLC’s Expanded Financial Support: SLC and Soluna signed an agreement to extend up to $100M of additional project-level capital for Soluna’s growing data center pipeline for Bitcoin and AI, subject to certain conditions precedent.
- Fund 2 Investment: SLC is deploying capital from its second private equity fund, Spring Lane Capital Fund II, which is twice the size of its initial fund. The fund is lined up to provide up to $4 million in Development Expenditure (DevEx) financing for Soluna’s long-lead equipment purchases.
- Project Approvals: Kati 1 already has all the necessary ERCOT planning approvals. An ERCOT model update will be submitted at least 90 days before energization.
“Our pipeline conversion rate is now higher than in previous years. With over 650 MW in our development phase, Spring Lane’s continued support is more than welcome. We have now expanded beyond an idea – using colocated data centers to solve curtailment – to a burgeoning digital infrastructure platform,” John Belizaire continued.
In keeping with its tradition of honoring women scientists, Soluna named Project Kati after Katalin “Kati” Karikó, the pioneering Hungarian scientist whose groundbreaking work made mRNA-based therapies and modern vaccines possible.
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
