Soluna’s 1 billion-share proposal exposes the funding challenge behind its AI and Bitcoin expansion

Soluna Holdings is asking shareholders to substantially expand its ability to issue stock as the data-center developer tries to finance a 6.3-gigawatt pipeline that remains overwhelmingly unbuilt.

An SEC filing showed that Soluna shareholders will vote at the company’s Oct. 16 annual meeting on whether to increase its authorized common stock to 1 billion shares from 375 million.

Investors will also consider a separate proposal allowing Soluna to issue more than 20% of its outstanding shares under a standby equity agreement with YA II PN. The company had 246.7 million shares outstanding as of Aug. 21.

The second proposal relates to a March agreement allowing Soluna to sell YA up to $250 million of common stock over time.

Neither vote would immediately issue shares or guarantee that Soluna raises the full amount, but approval would give management significantly more room to use equity to fund expansion.

Soluna has said its projects require substantial capital and identified the YA facility and other equity programs among its financing options. Additional share issuance could dilute existing investors’ earnings per share and voting power.

Those capital needs are becoming more visible as Soluna advances Project Dorothy 3, a planned AI and high-performance computing campus in Texas with potential capacity of more than 300 MW.