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Crypto mining data center Soluna Holdings (SLNH) shares experienced a significant 12.25% increase on May 15 as it announced a $14 million funding agreement with Navitas Global, which is earmarked for the completion of Project Dorothy 1B in Texas.
This infusion of funds not only supports the development of the project but also may signal a resurgence of cryptocurrency mining.
A comprehensive deal
According to Google Finance, in the last 24 hours, the price of Soluna Holdings’ shares increased from $0.20 to $0.23.
In a press release from May 15, Soluna Holdings, the blockchain company that leverages computing power to drive the advancement of renewable energy, disclosed the details of its agreement with Navitas Global.
In Project Dorothy 1B, Navitas will act as an investor and equity partner, injecting investment capital into the infrastructure build-out and 25 MW of bitcoin miners in exchange for a 49% equity stake.
The agreement encompasses a $2 million loan for construction completion and a $12 million equity investment.
Soluna, retaining a 51% ownership share, will contribute to 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 strong partner for Soluna now and long-term. The Navitas team not only understands the value of Bitcoin mining and having a reliable partner, but they also understand the long-term value of our infrastructure being interconnected to renewable energy power plants.”
John Belizaire, CEO of Soluna Holdings.
Recovering from the crypto winter
After a prolonged period of capital scarcity for miners during the crypto winter, the industry is showing signs of resurgence.
One of the key drivers behind this resurgence is the recovery of bitcoin’s price, which has risen, almost doubling since the beginning of the year. This resurgence in bitcoin’s price has sparked renewed optimism and activity within the mining sector.