To help finance a 6.3-gigawatt pipeline that is still overwhelmingly unbuilt, Soluna Holdings is asking its shareholders for a substantial expansion of its share-issuance capacity.
According to an SEC filing, investors will vote at the company’s annual meeting on Oct. 16 on a proposal to raise authorized common stock from 375 million to 1 billion shares.
Additionally, investors will vote on a separate proposal that would permit Soluna to issue shares exceeding 20% of its outstanding stock via a standby equity arrangement with YA II PN. As of Aug. 21, the company had 246.7 million shares outstanding.
The second measure stems from a March agreement that allows Soluna to sell up to $250 million of common stock to YA over time.
While neither vote guarantees that the full amount will be raised or results in the immediate issuance of shares, approval would grant management much greater latitude to utilize equity for expansion.
Soluna has noted that its projects demand heavy capital investments, pointing to the YA facility and other equity initiatives among its available funding paths. Issuing more shares could dilute the voting power and earnings per share of existing investors.
These funding requirements become increasingly apparent as Soluna pushes forward with Project Dorothy 3, a planned high-performance computing and AI campus in Texas designed with a potential capacity exceeding 300 MW.
For the initial construction phase, the company has acquired 397 acres and kicked off master planning and design efforts.
Furthermore, Soluna purchased the 150 MW Briscoe Wind Farm for $53 million, securing control over a renewable energy source to back the wider Dorothy infrastructure. The firm noted that funds secured during the second quarter contributed to the land acquisition for Dorothy 3.
Project Dorothy 3 is still in the development phase and is excluded from Soluna’s 192 MW of currently energized capacity.
Concurrently, Soluna is working to generate increased revenue from its existing infrastructure. On Aug. 25, the company struck a deal with Bitdeer to roll out roughly 28 MW of Bitcoin-mining hardware—representing about 1.93 exahashes per second—at Project Kati 1 in Texas.
Under the arrangement, Bitdeer supplies the mining rigs while Soluna furnishes the location, power, and operations, with both entities splitting the resulting mining revenue.
Soluna CEO John Belizaire remarked:
“Co-mining is a natural extension of that operating history. It puts our track record to work in a structure where we participate more directly in what the infrastructure produces, alongside a partner that builds some of the most capable machines in the industry.”
