Data center company Soluna to develop new cryptocurrency mining facility in the US

Approximately 1.9 billion yen investment partnership

Data center company Soluna Holdings announced on the 15th an investment partnership with Navitas Global, which operates crypto asset (virtual currency) mining facilities.

Approximately 1.9 billion yen ($14 million) in funding from the alliance will be used for the development of the data center project “Project Dorothy 1B” in Texas, USA.

The project will be a joint venture focused on Bitcoin (BTC) mining. Navitas participates as an investor and equity partner. Acquired a 49% stake in the joint venture “Project Dorothy 1B” to fund the construction of the project infrastructure.

The funding provided by Navitas consists of a loan of about 300 million yen ($2 million) to build a 25-megawatt facility and an equity investment of about 1.6 billion yen ($12 million).

Soluna will be responsible for the operation and maintenance of the facility and will continue to own a 51% stake in the joint venture.

Soluna said it is on track to reach positive cash flow in the second half of 2023, thanks to the investment partnership and other mining facility hosting deals in Texas.

Data center operation with renewable energy

Soluna Holdings CEO John Belizaire commented:

Soluna is a NASDAQ-listed data center company. It develops data centers that convert renewable energy into computing resources.

In addition to bitcoin mining, it is providing scalable data centers for computing-intensive applications such as artificial intelligence (AI) and machine learning.

The company notes that up to 30% of renewable electricity can be wasted as surplus. Soluna’s data center says it will purchase and utilize this power to support power companies.

In addition, when power supply exceeds demand, the operating rate of the mining facility is raised, and when power is tight, such as when the sun is not shining or the wind is not blowing, the operating rate can be flexibly switched, such as lowering the operating rate. We are proceeding with the construction of a new data center.

It is also explained that this will support the transition to renewable energy.

Marathon case study

Another example of cryptocurrency mining that utilizes surplus energy is the US mining company Marathon.

Marathon announced today that it has partnered with digital asset infrastructure company Zero Two to launch a large-scale Bitcoin mining facility in Abu Dhabi, United Arab Emirates (UAE). It will use surplus energy to improve the base load and sustainability of the grid.

connection: US mining company Marathon to launch large-scale facility in Abu Dhabi

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