Soluna Holdings Soars 94.44% on $100M Credit Facility Backing

Shares of Soluna Holdings Inc. (NASDAQ: SLNH) surged 94.44% on Tuesday, marking a two-day rally of 145.27% and propelling the stock to a new intraday high not seen since September 2025. The sharp rebound follows a $100 million credit facility announced with Generate Capital, a major infrastructure investor, which has positioned Soluna to accelerate its renewable-powered computing projects without shareholder dilution.

The financing package includes an initial draw of $12.6 million to refinance and expand existing data center initiatives, such as Projects Dorothy 1A and Dorothy 2, while supporting new ventures like Project Kati 1. The agreement also features a delayed draw of $22.9 million and an uncommitted accordion facility of $64.5 million. The deal includes warrants for 4 million shares and a board observer seat for Generate, aligning the investor’s interests with Soluna’s long-term growth. This institutional backing from a firm managing over $14 billion underscores confidence in Soluna’s scalable business model, which converts underutilized renewable energy into high-performance computing resources for Bitcoin mining and AI workloads.

Simultaneously, Soluna announced surpassing 1 gigawatt of clean computing capacity, driven by the addition of 150 MW (Project Gladys) and 100 MW (Project Fei). This milestone highlights the company’s progress in modular data center deployment, co-located with renewable energy sources to reduce costs and environmental impact. The expansion enhances revenue potential from Bitcoin and AI workloads while solidifying Soluna’s competitive edge in a market prioritizing sustainable infrastructure. Proprietary software MaestroOS further optimizes energy efficiency, reinforcing operational profitability as the company scales.

Strategic partnerships with industry players like Galaxy Digital and Compass Mining have also bolstered Soluna’s position. These collaborations provide access to advanced mining hardware and long-term contracts, diversifying revenue streams beyond cryptocurrency price volatility. Recent Q2 earnings, while still reporting a loss, showed improved efficiency with a $0.69 per share deficit versus a $0.76 estimate. Stable revenue of $6.16 million, despite broader industry challenges, reflects the company’s ability to maintain operations as it scales capacity.

However, rising short interest—up 27.61% in August—signals lingering caution among investors. A short interest ratio of 0.9 remains low, but increased short selling may indicate skepticism about sustaining growth amid Bitcoin’s volatility and regulatory uncertainties. Soluna’s leadership, including CEO John Belizaire, has emphasized disciplined execution and modular growth, though insider sales of $48,420 in the past three months have raised questions about confidence. Despite these risks, the company’s focus on renewable energy and AI workloads aligns with long-term trends in technology and sustainability, positioning it to capitalize on evolving market demands.