Soluna Holdings, Inc. Announces Signing of Master Equipment Finance Agreement, Purchases Additional Equipment from Bitmain
January 18, 2022 07:00 ET | Source: Soluna Holdings, Inc.
New relationship with NYDIG to support target of 3 EH/s by end of 2022
ALBANY, N.Y., Jan. 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. ("SCI"), a developer of green data centers for cryptocurrency mining and other intensive computing, announced today that its subsidiary Soluna MC Borrowing 2021-1 LLC (“Soluna MC Borrowing”) has entered into a master equipment financing agreement on December 30, 2021, with NYDIG ABL LLC which outlined the framework for a financing for up to approximately $14.4 million (“Master Agreement”).
Concurrent with this financing agreement, Soluna MC Borrowing entered into a purchase agreement for 110 PH/s of Bitmain S19 equipment that is expected to be delivered from February - June 2022.
Michael Toporek, CEO of Soluna, stated, “This equipment financing agreement with NYDIG gives us non-dilutive capital to continue scaling operations as we ramp up our hash rate.”
Soluna focuses on serving as a problem solver for the renewable energy sector. Soluna’s modular data centers convert excess renewable electricity into clean computing. In 2022 Soluna expects to address the significant market opportunity for batchable computing, which includes scientific research, artificial intelligence, and video processing, to diversify its computing applications beyond cryptocurrency mining.
Under the terms of the agreement, the aggregate principal outstanding of such loans will bear interest between 12-14% and will be repaid over 15-60 months. The debt is guaranteed by the Company’s indirect wholly-owned subsidiary, Soluna MC LLC, formerly EcoChain Block LLC, and is collateralized by the assets purchased by Soluna MC Borrowing and certain digital assets of such borrower.
Subsequently, the parties negotiated the specific terms of each equipment financing transaction as well as the terms upon which the investors would consent to the transactions contemplated by the Master Agreement. On January 14, 2022, Soluna MC Borrowing borrowed loans under the Master Agreement in the aggregate principal amount of approximately $4.6 million that will bear interest at 14% and will be repaid over 24 months.
