Galaxy Digital and Soluna Holdings Partnership
In a significant move for both companies, Galaxy Digital has announced plans to install 48 megawatts (MW) of its bitcoin mining machinery at the Project Kati 1 site managed by Soluna Holdings in Texas. This installation will push the facility to its maximum power capability of 83 MW.
The agreement not only involves the movement of miners that were previously situated at Galaxy’s Helios campus in the Texas panhandle but also marks a shift for Helios, which is moving towards a focus on artificial intelligence (AI) and high-performance computing (HPC).
Financial Support and Construction Timeline
This collaboration comes on the heels of Galaxy Digital extending financial support in the form of debt financing to Soluna in the first quarter of 2025, suggesting a deepening of their partnership. The Project Kati 1 site is presently in the midst of a construction phase for its initial capacity of 35 MW, with plans to initiate operations in the summer of 2025, and Soluna anticipates that phase one will be functional by the first quarter of 2026.
The implementation of Galaxy’s 48 MW operations will occur in stages during the first half of 2026, with Galaxy set to be the inaugural client to start mining at the Project Kati 1 facility once the construction is finalized. Soluna has committed to offering comprehensive power infrastructure as well as operational support for this deployment.
Significance of the Agreement
This agreement is notable for Soluna as it signifies their largest deployment with a single partner to date, following a successful 30 MW setup with another bitcoin miner earlier. Soluna’s CEO, John Belizaire, emphasized that this partnership underscores their capability to expand their modular data center strategy to satisfy increasing market demand.
Galaxy’s Business Development Lead, Sam Kiernan, underlined that the move is part of a broader realignment of Helios away from bitcoin mining.
Future Capacity and Efficiency
As the partnership progresses, once fully operational, the Project Kati 1 site will increase Soluna’s total operational capacity to 206 MW, leveraging curtailed renewable energy sources to optimize efficiency.
