Soluna Repays $28.7 Million Credit Facility to Generate Capital
Key Takeaways
- Soluna repaid $28.7 million in principal to Generate Capital, PBC.
- Total debt principal was reduced from $37.9 million to $9.2 million.
Soluna (NASDAQ: SLNH) said it has fully repaid its Generate Capital credit facility, releasing liens on project assets and clearing a step toward shifting power to its planned Dorothy 3 artificial intelligence campus in Texas.
The bitcoin mining and data-center developer said the repayment retired $28.7 million of principal reported outstanding at June 30. That leaves $9.2 million of other debt principal based on balances at that date, compared with $37.9 million before the repayment, according to its October 26 statement.
The payoff follows Soluna’s October 21 agreement to form a venture with Applied Digital for a planned 50-megawatt AI and high-performance computing facility at Dorothy 3, near Silverton, Texas. Applied Digital would hold 51% and Soluna 49%, with Soluna contributing land and power-related assets and Applied providing development capital.
Soluna made a $19.1 million payment in August and cleared the remaining Generate balance in October, it said. The financing, established in September 2025, refinanced Dorothy 1A and Dorothy 2 and helped fund completion of Dorothy 2. It also supported the April 2026 purchase of the 150-megawatt Briscoe Wind Farm, which supplies the Dorothy campus.
The August payment included costs beyond principal. Soluna’s second-quarter regulatory filing described it as covering $15.2 million of principal, a $3.9 million prepayment premium, accrued interest and other amounts due. The payment was funded with cash on hand, including proceeds from share sales through its at-the-market offering program.
The filing also said the relevant security interests would remain until the facility’s debt termination date. The October payoff therefore removes a restriction that persisted after the August payment.
Development and commercial conditions remain at Dorothy 3. The proposed venture is expected to close by the end of 2026, subject to tax-abatement approval and completion of operating, lease and power agreements, among other requirements.
ChronoScale, a publicly traded computing company majority-owned by Applied Digital, has signed a nonbinding letter of intent to lease the facility. A definitive lease has yet to be agreed. The initial phase is expected to draw electricity from both Briscoe Wind and the grid.
