Crypto and HPC data center provider Soluna has closed a $5 million loan facility with financial services and investment management firm Galaxy Digital.

Soluna intends to use the loan to support its project development and expansion.

“This deal underscores the strength of our project cash flows and demonstrates investor confidence in our ability to monetize energy through AI and Bitcoin mining,” said John Belizaire, CEO of Soluna Holdings.

The loan has a five-year term. As part of the loan agreement, Soluna has the right to prepay the loan, in whole or in part, at any time, subject to certain requirements. The loan security is limited to the assets at the project level, with a limited recourse parent company guarantee.

Max Bareiss, head of lending at Galaxy, said: “This deal reflects our confidence in Soluna’s business model and growth potential while underscoring our commitment to providing strategic capital to innovative companies at the forefront of technology.”

Soluna is currently executing a wholesale expansion of its operations tied to its growth in the HPC space.

In March, the firm finalized the purchase of 60 acres of land in Texas for the construction of its new 187MW data center, which will be allocated to Bitcoin mining and intensive AI computing tasks. The site is colocated with a 240MW wind farm.

Soluna is also in the process of developing several other sites, including the 166MW Project Kati, the 50MW Dorothy I, Dorothy II, and three others - all at varying degrees of completion.

The company aims to host a total of 479MW of data center capacity spread across seven separate sites.

Galaxy Digital was founded in 2018 and is headquartered in New York, with offices across Europe and Asia. The firm offers trading, lending, strategic advisory services, institutional-quality investment solutions, proprietary Bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology.