How to Play SLNH Stock as Soluna Scores a Major Data Center Win

Data center developer Soluna Holdings (SLNH) has had a rough ride over the past year, with its shares tumbling amid mounting financial losses, aggressive equity financing that has significantly diluted shareholders, and Nasdaq compliance pressures. However, the company has now given investors a potential reason for optimism. On Wednesday, Soluna announced that it had entered into a definitive agreement with Applied Digital (APLD) to establish a jointly owned company focused on developing a planned 50 MW IT data center in Texas.

The facility will be powered by the Briscoe Wind Farm, aligning the project with Soluna’s renewable energy-powered data center strategy. Under the agreement, Soluna is expected to contribute a portion of its Dorothy 3 site, including land and power-related project assets, to the newly formed project company, while Applied Digital is expected to provide the capital needed to support development. Upon completion of the transactions, Applied Digital is expected to own a 51% stake in the project company, with Soluna retaining the remaining 49% interest.