Deal will help Soluna to be cash flow positive during the second half of this year.
The shares of crypto mining data center Soluna Holdings (SLNH) rose about 12% on Monday, after the firm said it will get $14 million in funding to finish the development of Project Dorothy 1B in Texas, under a new deal with Navitas Global.
The deal includes a $2 million loan to complete construction of the 25 megawatt (MW) site and a $12 million equity investment, the company said in a press release on Monday. Soluna will provide operations and maintenance expertise and will remain 51% owner of the project.
“This partnership together with recent deals at Project Dorothy 1A and Project Sophie put the company on a trajectory to reach cash flow positive during the second half of 2023,” the statement said.
After a long crypto winter that saw capital dry up for miners, the industry seems to be getting back on its feet as the price of bitcoin has almost doubled this year. The shares of the data center firm has fallen about 22% this year, underperforming pure-play mining firms and bitcoin price.
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