Mining data center developer Soluna to raise $2 million in equity as shares fall 40%
Quick Take
- Soluna Holding, a developer of data centers for crypto mining, saw its stock plunge more than 40% after announcing an equity raise on Friday.
- The company said the new capital will be used for the acquisition and development of data centers.
Crypto mining data center developer Soluna Holdings has seen its stock drop more than 40% since Friday when it put forward an equity capital raise.
The deal is priced at $1.44 per share, with the 1,388,889 shares totaling $2 million, the company said Monday.
The stock hit a low Monday morning at $0.88 (down from $1.81 on Friday), but later in the day recovered to $1.19.
The new capital will be put towards the "acquisition, development and growth of data centers, including cryptocurrency mining processors," including its site in Texas.
The company is currently developing a 50-megawatt data center connected to a wind farm in that state, which is expected to go online in the last quarter of 2022, the company said on its website.
In addition to the $2 million in shares, Soluna is also issuing 593,065 shares to Spring Lane, which will raise at least an additional $850,000.
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