Soluna Repays $19.1 Million, Ends Generate Facility After Debt Reduction
Key Facts
Two Soluna subsidiaries repaid all amounts due on tranches of the financing agreement with Generate Capital, a move the company said ends the facility and simplifies its capital structure. The repayment on August 10, 2026, totaled about $19.1 million, including $15.2 million in principal and a $3.9 million early repayment premium, according to Soluna’s filing with the U.S. Securities and Exchange Commission. The company said releasing the loan’s related collateral enables power to be transferred to the Dorothy 3 AI campus. Its statement did not specify when the transfer would be completed. SLNH shares closed at $0.5501 on October 23, according to EL7 data.
The repayment took place in two stages; the filing said the subsidiaries fully repaid tranches A-1 and A-3 in August. Principal on loans drawn under the Generate agreement totaled about $28.690 million in the first half of 2026, compared with $17 million between September 12 and December 31, 2025. The June balance included tranches A-1, A-3 and C, according to the company’s filing. This means the repayment amount in the August filing should not be confused with total loans drawn at the end of June. The company also reported principal debt of about $37.9 million as of June 30, before issuance costs and discounts.
The loan figures show that the original Generate agreement provided for up to $35.5 million in secured loan commitments. The commitments were divided into a $5.5 million A-1 tranche, an $11.5 million A-3 tranche and an $18.5 million B tranche. In April 2026, an amendment added a $12.5 million C tranche to finance the acquisition of the Briscoe mine. The amendment reduced the undrawn commitment under tranche B by the same amount, according to Soluna’s filing. The repayment was part of financing arrangements for the company’s expansion across power and computing sites, including Dorothy 3 and the Briscoe acquisition.
Financial statements show total book debt rose to $33.119 million on June 30, 2026, from $26.757 million on December 31, 2025. This accounting measure differs from principal debt before issuance costs and discounts, which stood at about $37.9 million in June. On the revenue side, Soluna reported $15.060 million for the quarter ended June 30, 2026, compared with $6.158 million in the same period of 2025. Data hosting revenue was $12.653 million, versus $3.136 million a year earlier, according to the second-quarter report. These figures provide context on the expansion of the hosting business alongside the financing restructuring, without specifying the repayment’s effect on subsequent revenue.