Soluna Holdings entered a subscription agreement with affiliates of Applied Digital Corporation on October 20, 2026, to form a joint venture. The partnership will develop a 50 megawatt (MW) data center for artificial intelligence (AI) and high-performance computing (HPC) at Soluna's Project Dorothy 3 site in Texas. The transaction is expected to close by December 1, 2026.

Key Details

  • Joint Venture Structure: Soluna will hold a 49% ownership stake in the project company, with Applied Digital holding the majority 51% stake.
  • Capital Contributions: Soluna will contribute a ground sublease valued at $18.75 million for its stake. Applied Digital will contribute approximately $19.5 million in cash.
  • Warrant Issuance: Upon closing, Soluna will issue a 7-year warrant to Applied Digital to purchase up to 7,644,444 shares of SLNH common stock at an exercise price of $0.74 per share.
  • Termination Risk: If the agreement is terminated under certain conditions, Soluna may be obligated to reimburse Applied for 80% of funded development costs, up to a maximum of $45 million.