Soluna Eyes 98 MW Bitcoin-to-AI Conversion With $16.5M First-Step Dorothy Buyout
Soluna (NASDAQ: SLNH) is moving to consolidate control of its flagship Texas campus with another $16.5 million acquisition as it accelerates the conversion from bitcoin mining toward AI infrastructure.
Soluna announced on Thursday that it acquired the remaining equity interest in Project Dorothy 1A for $16.5 million, buying out its partner Spring Lane Capital and bringing its ownership of the facility to 100%. The site is part of Soluna’s Dorothy campus in Silverton, Texas. The transaction will be funded with cash and debt, including a $12 million unsecured promissory note maturing in May 2027.
The deal follows Soluna’s $53 million acquisition earlier this month of Briscoe Wind Farm, which supplies roughly 150 megawatts (MW) of renewable power to the campus. Together, the transactions give Soluna control over both energy generation and compute infrastructure in its bid to move things at a higher velocity.
“What customers value is speed to power,” John Belizaire told TheEnergyMag, adding that the company is now in discussions to consolidate ownership of the remaining Dorothy assets, Projects 1B and 2. He said the ultimate goal is to convert the entire Dorothy campus, including the planned Dorothy 3 expansion, into an AI and high-performance computing site powered by the adjacent wind farm.
Soluna’s Dorothy campus currently has about 100 MW of operating capacity across three phases, reflecting its legacy as a bitcoin mining site. Dorothy 1A, now fully owned by Soluna, operates 25 MW dedicated to bitcoin mining hosting. Dorothy 1B, also 25 MW, is used for proprietary mining, while Dorothy 2 contributes 48 MW primarily for hosting operations. Spring Lane Capital remains an investor in the Dorothy 2 project.
The shift will begin with Dorothy 1A, which Soluna plans to convert first. Existing mining customers at the site will be relocated to other facilities within the company’s portfolio as part of the transition.
Rather than expanding proprietary mining, Soluna is separating its businesses into distinct tracks, Belizaire said, focusing bitcoin operations on hosting only while dedicating the Dorothy campus to AI and HPC colocation.
“We’re bifurcating the two,” he said, describing a strategy that mirrors a broader industry divergence as miners seek more stable, contract-based revenue streams from AI customers.
The conversion process for Dorothy 1A is expected to unfold over the next two years. With full ownership of both the data center and its power source now secured, Soluna plans to first expand its power footprint within the Electric Reliability Council of Texas market, followed by site feasibility and environmental studies.
The company aims to begin marketing the upgraded facility to prospective AI tenants by the end of 2026, with a target to energize the converted site by the end of 2027, according to Belizaire.
Soluna said it expects to provide further updates on ownership consolidation and Dorothy 3 development in future filings. Its broader pipeline now exceeds 4.3 gigawatts across multiple sites.
