Soluna Holdings Expands Partnership with Galaxy Digital to Boost Renewable Computing Capacity

Soluna Holdings has expanded its partnership with Galaxy Digital to deploy 48 MW at Project Kati 1 in Texas, bringing its total operating capacity to 206 MW. The project is expected to be operational by Q1 2026. Soluna's stock has a negative overall score due to poor financial performance, a bearish trend, and negative valuation metrics.

Soluna Holdings (NASDAQ: SLNH), a developer of green data centers, has expanded its partnership with Galaxy Digital (NASDAQ/TSX: GLXY) to deploy a 48 MW Bitcoin mining operation at its Project Kati 1 in Texas. This expansion brings Soluna's total operating capacity to 206 MW, with the project expected to be operational by the first quarter of 2026 [1].

Under the new agreement, Galaxy Digital will relocate its existing mining equipment from its Helios campus in the Texas panhandle to Project Kati 1. This move aligns with the companies' shared commitment to utilizing underused energy infrastructure in a sustainable manner [3]. The deployment underscores Soluna's ability to attract and retain major industry players, with Galaxy Digital serving as the first operational partner for the site [3].

The expansion is a significant milestone for both companies. Galaxy Digital, a global leader in digital assets and data center infrastructure, is transitioning its Helios campus to an AI and high-performance computing data center. Soluna's modular approach allows it to deliver efficient, renewable-powered infrastructure at scale [2]. The construction of Project Kati 1 is expected to begin before the end of August, pending final tax abatement approvals [5].

Soluna's CEO, John Belizaire, highlighted the strategic importance of this partnership, stating, "As demand from hyperscaler miners continues to surge, Soluna is scaling to meet the moment. This partnership with Galaxy represents our largest MW deployment to date and underscores how our modular approach allows us to deliver efficient, renewable-powered infrastructure at scale. We’re proud to deepen our relationship with Galaxy and help power the next wave of computing" [2].

The expansion of Project Kati 1 is expected to bring Soluna's operating capacity to 206 MW once fully deployed [2]. The construction is expected to launch before the end of August, with Project Kati 1 anticipated to be operational in the first quarter of 2026 [2].

Galaxy Digital's Business Development Lead, Sam Kiernan, expressed his satisfaction with the arrangement, "As we transition our Helios campus to an AI and high-performance computing data center, we’re pleased to relocate a portion of our existing Bitcoin mining assets to Soluna to manage" [2].

This partnership not only underscores the growing demand for renewable energy in the data center industry but also highlights Soluna's commitment to providing sustainable and efficient computing solutions [1].

References:
[1] https://www.standard-journal.com/ap/business/article_0df066c5-c8ce-595b-93cc-0116366c5d81.html
[2] https://www.nasdaq.com/press-release/soluna-expands-partnership-galaxy-digital-deploy-48-mw-project-kati-2025-08-12
[3] https://www.ainvest.com/news/soluna-galaxy-expand-partnership-deploy-48-mw-project-kati-1-2508/
[4] https://www.ainvest.com/news/cfo-transition-leadership-continuity-soluna-holdings-navigating-risks-capital-intensive-tech-sector-2508/
[5] https://www.ainvest.com/news/soluna-expands-partnership-galaxy-digital-deploy-48-mw-project-kati-2025-08-12