Soluna Holdings has secured $20 million in project-level financing from Spring Lane Capital to begin construction on Project Kati 1, a 35-megawatt modular data center dedicated to Bitcoin hosting. The facility, located in Texas, is designed to support approximately 12,000 next-generation Bitcoin mining rigs and is scheduled to be energized in early 2026. Construction is expected to begin in Q3 2025.
Project Kati 1 builds on Soluna’s existing partnership with Spring Lane Capital, which previously financed the company’s flagship Project Dorothy. The new round continues a structure that enables Soluna to generate current income throughout both construction and operational phases. Soluna confirmed that the $20 million covers all expected development and working capital needs for the 35MW phase, which is part of an 83MW total development at the site.
In addition to this tranche, Spring Lane Capital has committed to providing up to $100 million in future funding to support Soluna’s growing pipeline of green data centers focused on Bitcoin and AI compute. Capital for the current investment comes from Spring Lane Capital Fund II, which also provides $4 million in DevEx financing for long-lead equipment. Project Kati 1 has already received the necessary approvals from ERCOT, Texas’ grid operator.
- Soluna will begin construction on Project Kati 1 (35MW) in Q3 2025; energization expected by Q1 2026
- Facility will host ~12,000 advanced Bitcoin mining rigs
- $20M funding from Spring Lane Capital will fully cover development and working capital
- Kati 1 is part of a larger 83MW expansion in Texas
- Spring Lane Capital has committed up to $100M for future Soluna projects
- ERCOT planning approvals for Kati 1 are complete; model updates to be submitted pre-energization
“Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy,” said John Belizaire, CEO of Soluna. “We expect these funds to fuel the construction of the first 35MW of the 83MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting.”
🌐 Why it Matters: Soluna is scaling its green data center model at a time when Bitcoin mining faces increasing scrutiny over energy consumption. By colocating compute with stranded or underutilized renewable energy in ERCOT, Soluna offers a path to high-performance, demand-flexible infrastructure that aligns with grid stability and decarbonization goals.
