Soluna’s growth story has an interesting trade off.
Shareholders will vote in October on increasing authorized common shares from 375M to 1B, while also considering approval for a deal that could let the company issue more than 20% of its outstanding shares.
That doesn’t mean all those shares will immediately hit the market.
But it does give Soluna much more flexibility to raise capital for projects like Dorothy 3, its planned 300+ MW AI/HPC campus.
And that’s where I started thinking:
More capital can help build more infrastructure, but raising it through equity can also dilute existing shareholders.
At the same time, Soluna is trying to monetize existing infrastructure, including a new 28 MW Bitcoin-mining deployment with Bitdeer.
So the real question for shareholders may be:
How much dilution is acceptable for future growth?
Shareholders will vote in October on increasing authorized common shares from 375M to 1B, while also considering approval for a deal that could let the company issue more than 20% of its outstanding shares.
That doesn’t mean all those shares will immediately hit the market.
But it does give Soluna much more flexibility to raise capital for projects like Dorothy 3, its planned 300+ MW AI/HPC campus.
And that’s where I started thinking:
More capital can help build more infrastructure, but raising it through equity can also dilute existing shareholders.
At the same time, Soluna is trying to monetize existing infrastructure, including a new 28 MW Bitcoin-mining deployment with Bitdeer.
So the real question for shareholders may be:
How much dilution is acceptable for future growth?
