Soluna Holdings, a company specializing in the development of green data centers for high-demand computing activities such as artificial intelligence (AI) and Bitcoin mining, has successfully secured a new financing arrangement. This partnership involves a scalable credit facility of up to $100 million from Generate Capital, PBC, a well-known infrastructure investment firm. This significant financial backing will support Soluna’s ongoing projects and its ambitious growth plans.
Initially, Soluna will draw $12.6 million from this facility. This funding will primarily help refinance their existing projects and facilitate the construction of new data centers that are crucial for their operations. The funding is significant, as it will enable Soluna to further develop its active data center projects while also providing additional support for its expanding pipeline, which already includes 1 gigawatt of renewable energy capacity.
As a digital infrastructure company, Soluna specializes in building modular data centers designed to convert excess renewable energy—energy that might otherwise go to waste—into computing power. This is particularly relevant for energy-intensive activities, such as Bitcoin mining and running complex AI algorithms. By strategically positioning their data centers alongside clean energy producers, Soluna not only supports a more sustainable energy grid but also provides enterprises with affordable and eco-friendly solutions for their computing needs.
Generate Capital has a history of investing over $2.4 billion in sustainable infrastructure credit, which makes their collaboration with Soluna a logical and strategic pairing. The expertise that Generate brings as an asset owner and operator enhances their partnership, allowing both companies to work together in ways that go beyond simply investing money. They aim to create substantial synergy between their operations.
This new financing arrangement comes on the heels of Soluna’s recent fundraising efforts, which included raising more than $30 million earlier in 2025 from reputable partners such as Galaxy Digital and Spring Lane Capital, as well as through a public offering. The infusion of funds will enable Soluna to accelerate its roadmap for executing projects, highlighted by recent developments like the addition of 150 megawatts of capacity for Project Gladys and 100 megawatts for Project Fei. This expansion marks a significant milestone, pushing the company beyond 1 gigawatt of renewable computing capacity.
In addition to these projects, Soluna is actively pursuing ongoing expansions, such as the 48 megawatt expansion at Project Dorothy 2 and the recent commencement of construction on Project Kati 1. The company’s vision extends beyond just Bitcoin mining; it is also looking to diversify its computing offerings by incorporating AI workloads, which aligns with the increasing demand for sustainable computing solutions across various sectors.
Soluna has also recently strengthened its partnerships with leading companies in the field, including Blockware, Compass Mining, and Galaxy Digital, as well as other hyperscale miners. These partnerships underscore Soluna’s growing presence and operational expertise in the market.
As part of the terms of the financing, Soluna’s $100 million credit facility will be allocated to both refinancing existing projects and constructing new data centers aimed at meeting the rising demand for green energy solutions. The initial $12.6 million draw will specifically be used to refinance two of their existing data centers, which will free up equity capital for both Soluna and Spring Lane Capital.
There is also a subsequent delayed draw facility of $22.9 million, designated for continued funding of the Dorothy 2 project and the Kati 1 data center. In addition, the agreement includes an uncommitted accordion facility totaling $64.5 million, which will be available to support Soluna’s growing pipeline of renewable-powered projects and assist in acquiring long-lead equipment for AI initiatives.
As part of this deal, Generate Capital has also been granted warrants, providing it the right to purchase 4 million shares of Soluna common stock and a seat as a board observer.
Advisors/counsel: Generate was represented by Vinson & Elkins. Norton Rose Fulbright, O’Melveny & Myers, Lowenstein Sandler, and Brownstein Hyatt Farber Schreck represented Soluna.
KEY QUOTES:
“We believe this deal with Generate primes Soluna for scale.”
“We’re not just growing our current projects, we’re building new ones wherever wasted renewable energy can be converted into valuable high performance computing. This deal reflects a different kind of infrastructure financing, focused on capital efficiency, modular growth, and disciplined execution. We’ve known the Generate team for quite some time before partnering; they understand our business, our team, and our industry well, making them so much more than just investors. We see them as strategic partners going forward.”
John Belizaire, CEO of Soluna
“Soluna’s vision for turning underutilized renewable energy into scalable computing power aligns with our belief in infrastructure that solves real-world challenges. We’re excited to support their growth through a flexible credit solution and continue our leadership at the nexus of digital and energy infrastructure.”
Ryan Miller, Principal at Generate Capital
