Soluna Holdings, Inc. (NASDAQ: SLNH) completed a $32 million registered direct offering priced at‑the‑market on December 4, 2025. The transaction will issue 18,079,144 shares of common stock, or pre‑funded warrants in lieu thereof, and will be accompanied by Series C warrants that allow the holder to purchase up to the same number of shares at an exercise price of $1.65 per share, expiring five years after issuance.
The offering was priced at $1.77 per share and was arranged by placement agent H.C. Wainwright & Co. Soluna’s Form S‑3 registration statement (File No. 333‑286638) was declared effective on April 29, 2025, enabling the at‑the‑market sale under Nasdaq rules. The proceeds will be allocated to working capital, project‑level equity, and general corporate purposes, with a focus on expanding the company’s renewable‑computing portfolio.
Soluna’s capital raise comes amid persistent liquidity concerns highlighted in its most recent financial statements. Revenue for the third quarter of 2025 rose 37% year‑over‑year to $8.42 million, but the company reported a net loss of $23.96 million, up from $7.19 million in the same quarter a year earlier. Gross profit improved to 28% from 19% in Q2 2025, largely due to one‑time electricity credits, while adjusted EBITDA remained negative at $6.4 million. The company’s debt‑to‑equity ratio stands at –1.21 and it has a $100 million credit facility from Generate Capital, of which $12.6 million has been drawn.
CEO John Belizaire emphasized that the equity raise is a “new Soluna” that will strengthen the balance sheet and provide the “firepower” needed to accelerate growth in AI and Bitcoin‑hosting markets. CFO John Tunison noted that the company has maintained a steady 19% gross margin and has achieved a 25.5% increase in adjusted EBITDA in Q2 2025, underscoring disciplined cost management amid market softness. Management highlighted the company’s ongoing projects—Dorothy, Sophie, Kati, Rosa, and Ellen—while acknowledging the need for additional capital to sustain momentum.
The market reacted to the announcement with short‑term pressure, as investors weighed the dilutive impact of the new shares against the company’s need to shore up liquidity. Analysts noted that the offering reflects Soluna’s strategy to avoid debt and preserve cash for construction and expansion of its data‑center pipeline, but also recognized the company’s negative margins and high beta of 4.85 as potential headwinds.
In summary, Soluna’s $32 million at‑the‑market offering is a significant capital‑raising event that will provide the resources needed to support its renewable‑computing initiatives while addressing liquidity challenges. The transaction underscores the company’s commitment to scaling its AI and Bitcoin‑hosting operations, even as it navigates a high‑leverage, high‑volatility environment.
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