Soluna Holdings, Inc. has completed the full repayment of its $28.7 million credit facility with Generate Capital, PBC, reducing its total debt principal from $37.9 million to $9.2 million. The termination of the facility releases liens on related project assets, a move the company says allows for the transition of power to the Dorothy 3 AI campus.
The repayment was executed in two stages. Soluna disclosed in its most recent quarterly report on Form 10-Q that it repaid $19.1 million of the debt in August 2026. The company paid off the remaining balance in October 2026, fully retiring the facility. As of June 30, 2026, the $28.7 million represented the outstanding principal under the Generate agreement. With this debt now cleared, Soluna's total debt principal stands at $9.2 million, reflecting its remaining debt balances as of that same date.
Michael Picchi, CFO of Soluna, stated that repaying the facility simplifies the company's capital structure as it continues developing its AI and high-performance computing pipeline. He noted that the full repayment retires this portion of the debt and releases the liens on the project assets.
Soluna originally entered into the Generate credit facility in September 2025 to refinance Dorothy 1A and Dorothy 2. The financing was intended to unlock project equity capital and fund the completion of Dorothy 2. The company also used Generate financing to support its April 2026 acquisition of the 150 MW Briscoe Wind Farm. This acquisition gave Soluna ownership of the renewable generation asset that powers Project Dorothy.
John Belizaire, CEO of Soluna, credited Generate with helping the company unlock equity in its Dorothy projects, complete Dorothy 2, and acquire the Briscoe Wind Farm. He described the partnership as supportive during an important stage of the company's growth, noting that Generate's team understood Soluna's business model.
Soluna Holdings operates green data centers for intensive computing applications, including AI and Bitcoin mining. The company designs and develops digital infrastructure co-located with wind, solar, or hydroelectric power plants to transform surplus renewable energy into computing resources. Its proprietary software, MaestroOS, is used to manage these operations.