Shares of crypto-mining data center Soluna Holdings (SLNH) saw a significant increase of 12.25% on May 15 as it announced a $14 million financing agreement with Navitas Global, which is earmarked for the completion of the Dorothy 1B project in Texas.
This infusion of funds not only supports the development of the project, but may also signal the resurgence of cryptocurrency mining.
package deal
According to Google Finance, in the last 24 hours, the price of Soluna Holdings shares has increased from $0.20 to $0.23.
In a May 15 press release, Soluna Holdings, a blockchain company that is leveraging computing power to drive renewable energy advancements, revealed details of its agreement with Navitas Global.
In the Dorothy 1B project, Navitas will act as investor and equity partner, pouring venture capital into infrastructure construction and 25 megawatts of bitcoin mining in exchange for a 49% stake.
The agreement includes a loan of US$2 million to complete the construction works and an investment of US$12 million in equity.
Soluna, which retains a 51% ownership interest, will contribute to the operations and maintenance. With this partnership and recent deals, the company may have positive cash flow by the second half of 2023.
Navitas is a solid partner for Soluna now and for the long term. The Navitas team not only understands the value of Bitcoin mining and having a trusted partner, but also the long-term value of connecting our infrastructure to renewable energy plants. “
John Belisaire, CEO, Inc Soluna Holding.
Recovery from crypto winter
After a long period of scarcity of capital for miners during the cryptocurrency winter, the industry is showing signs of recovery.
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One of the main drivers behind this recovery is the recovery of the Bitcoin price, which has soared, almost doubling since the beginning of the year. This rally in the price of Bitcoin has led to renewed optimism and activity within the mining sector.