TLDR: Soluna Holdings, Inc. has successfully closed a $20 million funding round from Spring Lane Capital to commence construction on Project Kati 1 in Texas. This 35-megawatt expansion will develop green data centers for high-performance computing, including Bitcoin mining and AI applications, with construction slated to begin in Q3 2025 and operations by Q1 2026.
ALBANY, N.Y. – Soluna Holdings, Inc. (NASDAQ: SLNH), a prominent developer of green data centers for intensive computing applications, announced on July 22, 2025, the successful closure of a $20 million financing round from Spring Lane Capital (SLC). This significant investment is earmarked for the commencement of Project Kati 1, a 35-megawatt (MW) expansion of Soluna’s data center operations in Texas.
Project Kati 1 represents the initial phase of a larger 83MW expansion plan and is designed to accommodate approximately 12,000 next-generation Bitcoin mining rigs. Crucially, the facility is also intended to support growing demand for decentralized AI workloads, highlighting Soluna’s commitment to both cryptocurrency hosting and advanced computing applications.
Construction for Project Kati 1 is scheduled to begin in the third quarter of 2025, with the company aiming for initial energization and operational ramp-up by the first quarter of 2026. Soluna has confirmed that all necessary planning approvals from the Electric Reliability Council of Texas (ERCOT) are already in place, ensuring a smooth progression for the project.
John Belizaire, CEO of Soluna, expressed his confidence in the partnership and the project’s impact, stating, “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.” This $20 million is anticipated to fully cover the project’s funding needs, including working capital.
Spring Lane Capital’s continued support underscores their belief in Soluna’s vision for sustainable high-performance computing. The funding for Project Kati 1 comes from Spring Lane Capital Fund II, their second private equity fund, which is twice the size of its predecessor. Furthermore, SLC and Soluna had previously signed an agreement to extend up to $100 million in additional project-level capital for Soluna’s expanding data center pipeline, subject to certain conditions precedent. This broader commitment includes up to $4 million in Development Expenditure (DevEx) financing for long-lead equipment purchases.
Also Read:
- OpenAI and Oracle Boost AI Infrastructure with Major Stargate Data Center Expansion
- Rune Technologies Secures $24 Million Series A to Revolutionize Military Logistics with AI
Rob Day, a representative from Spring Lane Capital, reiterated the firm’s ongoing support for Soluna’s initiatives in developing green data centers that leverage renewable energy sources such as wind, solar, and hydroelectric power. Soluna’s model involves co-locating its data centers with renewable energy facilities, aligning with the increasing demand for sustainable infrastructure in the compute-intensive sector.
