Soluna proposes 1 billion shares to fund AI and Bitcoin expansion

Soluna Holdings is seeking shareholder approval to increase its authorized common stock from 375 million to 1 billion shares to finance a 6.3-gigawatt pipeline that is largely unbuilt. An SEC filing indicates that shareholders will vote on this proposal at the company's annual meeting on Oct. 16. Additionally, investors will consider a proposal to issue more than 20% of outstanding shares under a standby equity agreement with YA II PN, which allows Soluna to sell up to 250 million dollars of common stock over time. Approval of these proposals would provide management with more flexibility to use equity for expansion, although it could dilute existing investors' earnings per share and voting power. Soluna's capital needs are highlighted by Project Dorothy 3, an AI and high-performance computing campus in Texas with over 300 MW capacity. The company has secured 397 acres for this project and acquired the 150 MW Briscoe Wind Farm for 53 million dollars to support it. Soluna has also signed an agreement with Bitdeer to deploy 28 MW of Bitcoin-mining equipment at Project Kati 1 in Texas, sharing mining proceeds while limiting its need to fund mining hardware. Currently, Soluna operates about 192 MW, with another 14 MW under construction, while 1.6 GW of its pipeline remains in planning and development.

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