Crypto Mining Data Center Firm Soluna Tumbles After Capital Raise

Shares of Soluna Holdings (SLNH) are down 43% to $1.03 early Monday after the company's Friday evening announcement of a secondary offering. The stock is now lower by 90% year-to-date.

Soluna sold 1,388,889 shares at a price of $1.44 each, raising about $2 million, according to a statement. A separate share issuance at that same price to previous backer Spring Lane Capital will raise another $853,000.

Univest Securities was the underwriter for the sale, and was granted a greenshoe option to purchase another 208,333 shares at the offering price.

Soluna said it plans to use the proceeds for acquiring, developing, and the growth of data centers, including cryptocurrency mining processors, other computer processing equipment, data storage, electrical infrastructure, software, real property, and business, including but not limited to its development site in Texas.

Soluna, which uses renewable energy for computing, arranged $35 million in project financing in May from private equity firm Spring Lane Capital for building more facilities.

Read more: Soluna Receives $35M From Spring Lane to Build Green Data Centers