Soluna Holdings, Inc., a developer of green data centers for intensive computing applications including Bitcoin mining and AI, has secured a $20 million financing round from Spring Lane Capital. The funds are earmarked for a 35-megawatt (MW) expansion of Project Kati in Texas, known as Project Kati 1.
Project Kati 1 construction is scheduled to commence in the third quarter of 2025, with an anticipated initial energization and ramp-up by the first quarter of 2026. This expansion aims to host approximately 12,000 next-generation Bitcoin mining rigs. Soluna CEO John Belizaire stated, “Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy. 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.”
Financially, the $20 million is expected to cover all project funding needs, including working capital. Project Kati 1 will utilize a superior waterfall structure along with enhanced management and development fees, designed to provide Soluna with current income during both construction and operational phases. Spring Lane Capital’s investment stems from its second private equity fund, Spring Lane Capital Fund II, which is twice the size of its initial fund. The fund will also provide up to $4 million in Development Expenditure (DevEx) financing to facilitate Soluna’s long-lead equipment purchases.
This financing builds upon an existing agreement between Spring Lane Capital and Soluna to extend up to $100 million in additional project-level capital for Soluna’s growing data center pipeline, subject to certain conditions precedent. Project Kati 1 has already obtained the necessary ERCOT planning approvals, with an ERCOT model update slated for submission at least 90 days prior to energization.
Rob Day, representing Spring Lane Capital, commented on the continued investment, saying, “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. We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”
Soluna Holdings, Inc. focuses on designing, developing, and operating digital infrastructure that converts surplus renewable energy into global computing resources. Its data centers are co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications, including Bitcoin mining and Generative AI. Spring Lane Capital is a private equity firm based in Boston, MA, and Montreal, QC, specializing in providing hybrid project capital for sustainability solutions across various industries.
