Soluna and Galaxy Digital Expand Partnership for 48 MW Bitcoin Mining Deployment at Project Kati.

Soluna Holdings has expanded its partnership with Galaxy Digital, with Galaxy deploying 48 MW of proprietary bitcoin mining operations at Soluna's Project Kati. The agreement allows Galaxy to utilize Soluna's existing infrastructure to deploy their previously housed Helios datacenter campus operations, strengthening their partnership and increasing Soluna's capacity.

Soluna Holdings has expanded its partnership with Galaxy Digital, with Galaxy deploying 48 MW of proprietary bitcoin mining operations at Soluna's Project Kati. The agreement allows Galaxy to utilize Soluna's existing infrastructure to deploy their previously housed Helios datacenter campus operations, strengthening their partnership and increasing Soluna's capacity [1].

The expansion, which is expected to bring Soluna's total capacity to 83 MW, follows a strategic shift in the relationship between the two companies. Initially, the partnership involved a $5 million non-dilutive loan facility in Q1 2025, demonstrating Galaxy's confidence in Soluna's project-level cash flows [2]. However, the latest agreement marks a full operational collaboration, with Galaxy relocating its mining equipment to Soluna's facility.

The move is part of a broader industry trend towards the convergence of Bitcoin mining and AI workloads in energy-rich regions. Soluna's modular, turnkey power infrastructure is designed to integrate seamlessly with surplus renewable energy, providing a scalable solution for hyperscalers and institutional miners seeking to reduce costs and carbon footprints [2].

The financial terms of the partnership further underscore Soluna's credibility. The $5 million loan facility, secured by Project Sophie's assets and structured with limited recourse to Soluna's parent company, exemplifies the strength of project-level standalone cash flows. Additionally, Spring Lane Capital's $20 million investment in Project Kati 1 highlights the growing institutional demand for renewable-powered computing infrastructure [2].

Soluna's modular design and MaestroOS software optimize real-time power consumption, enhancing energy efficiency and generating ancillary revenue streams. The scalability of Project Kati 1 is particularly noteworthy, with plans to expand to 166 MW, aligning with the surging demand for Bitcoin hosting and AI compute [2].

The partnership with Galaxy positions Soluna as a replicable model for future collaborations and positions it as a leader in the energy-crypto market. For investors, the strategic expansion represents a high-conviction opportunity in the renewable computing sector, with Soluna's ability to secure non-dilutive financing and attract institutional partners like Galaxy and Spring Lane Capital positioning it as a leader in a market poised for exponential growth [2].

However, risks remain, including regulatory shifts, grid constraints, and the pace of AI adoption. Soluna's proactive approach to ERCOT planning, diversified project pipeline, and alignment with institutional capital mitigate these risks. For investors with a 3–5 year horizon, Soluna's renewable-powered infrastructure model offers a compelling play on the intersection of energy, technology, and institutional demand [2].

References:

[1] https://www.ainvest.com/news/soluna-strategic-expansion-galaxy-digital-catalyst-renewable-powered-bitcoin-hosting-growth-2508/
[2] https://www.ainvest.com/news/soluna-galaxy-expand-partnership-deploy-48-mw-project-kati-1-2508/