Soluna seeks 1 billion authorized shares amid AI and Bitcoin funding challenge

Soluna shareholders will vote on increasing the company's authorized common stock to 1 billion shares from 375 million at the Oct. 16 annual meeting. Investors will also consider allowing Soluna to issue more than 20% of its outstanding shares under a standby equity agreement with YA II PN. Soluna had 246.7 million shares outstanding as of Aug. 21. The March agreement allows Soluna to sell YA up to $250 million of common stock over time. Neither proposal would immediately issue shares. Neither proposal would guarantee that Soluna raises the full amount. Approval would give Soluna more equity-financing flexibility for its expansion. Soluna has identified the YA facility and other equity programs as financing options for projects that require substantial capital. Additional share issuance could dilute existing investors' earnings per share and voting power. Soluna is developing Project Dorothy 3, an AI and high-performance computing campus in Texas with potential capacity of more than 300 MW. Soluna has secured 397 acres for the initial buildout. Soluna has begun master planning and design work for the campus. Soluna acquired the 150 MW Briscoe Wind Farm for $53 million. The wind farm provides a renewable-energy source for the broader Dorothy complex. Dorothy 3 is not included in Soluna's 192 MW of currently energized capacity. On Aug. 25, Soluna agreed with Bitdeer to deploy about 28 MW of Bitcoin-mining equipment at Project Kati 1 in Texas. The deployment represents roughly 1.93 exahashes per second. Bitdeer will own the mining machines. Soluna will provide the site, electricity, and operations. The companies will share mining proceeds. Soluna CEO John Belizaire said co-mining allows the company to participate more directly in the infrastructure's output with a partner. The structure reduces Soluna's need to fund the mining hardware. The 28 MW uses existing Kati 1 capacity and does not expand Soluna's overall pipeline. Soluna operates about 192 MW. Another 14 MW is under construction. About 1.6 GW of Soluna's 6.3 GW pipeline remains in planning and development. Another 4.5 GW remains in assessment. About 3% of the reported pipeline is energized.