8-K: Soluna Settles NYDIG Debt, Partners with Canaan for 20 MW Bitcoin Mining

Soluna Holdings, Inc. announced a settlement with NYDIG for a $9.18 million judgment and a new strategic hosting agreement with Canaan Inc. to deploy 20 MW of Bitcoin miners at its Texas facility.

Summary

• Soluna Holdings, Inc. (Soluna) and NYDIG ABL LLC (NYDIG) entered into a Settlement Agreement on September 29, 2025, to fully resolve a previously disclosed judgment.
• The original judgment, approved on February 23, 2024, made Soluna parties jointly and severally liable for $9,182,646.13 plus interest related to NYDIG Loans.
• The Settlement Agreement requires Soluna parties to make certain settlement payments, with a clause that the Agreed Judgment Amount will be revived if payments or other conditions are not met.
• On September 30, 2025, Soluna announced a strategic hosting agreement with Canaan Inc. (Canaan) to deploy 20 megawatts (MW) of Avalon A15 XP Bitcoin miners.
• The deployment will occur at Soluna's Project Dorothy in Briscoe County, Texas, and is expected in the first quarter of 2026.
• The 20 MW deployment is estimated to provide approximately 1 EH/s of hashrate and will primarily utilize behind-the-meter wind power, with grid access for high uptime.
• This partnership supports Soluna's goal to scale its renewable-powered digital infrastructure and Canaan's objective to strengthen its North American mining footprint with sustainable energy.

Sentiment

Score: 8

Explanation: The resolution of a substantial legal judgment and the announcement of a significant strategic partnership for 20 MW of new hosting capacity, leveraging renewable energy, are strong positive developments for the company's operational and financial stability.

Positives

• Resolution of a significant legal judgment with NYDIG, removing a substantial financial liability and uncertainty.
• Establishment of a new strategic hosting agreement with Canaan Inc., a prominent industry player, expanding Soluna's operational capacity.
• Deployment of 20 MW of next-generation Bitcoin miners at Project Dorothy, increasing Soluna's revenue-generating infrastructure.
• Utilization of primarily wind energy for the new deployment, reinforcing Soluna's commitment to renewable-powered computing and sustainability.
• The partnership contributes to monetizing Soluna's 2.8 GW+ pipeline of Renewable Computing projects.

Negatives

• The original judgment amount of $9,182,646.13 plus interest highlights a past financial obligation and legal dispute.
• Failure to adhere to the settlement payment schedule or other conditions could result in the revival and reinstatement of the full Agreed Judgment Amount.

Risks

• Failure by the Soluna Parties to make agreed-upon settlement payments or other specified defaults could revive, reinstate, and restore the original $9,182,646.13 judgment plus interest.
• Forward-looking statements regarding deployment timelines, operational performance, and market expansion involve inherent risks and uncertainties.
• Risks associated with the Bitcoin industry, including price volatility, competition, changing macroeconomic and geopolitical conditions, and evolving government policies and regulations.

Future Outlook

Soluna aims to continue scaling its renewable-powered digital infrastructure and monetize its 2.8 GW+ pipeline for Bitcoin mining and AI workloads. Canaan intends to expand its North American presence and strengthen its self-mining strategy by leveraging Soluna's infrastructure and sustainable energy sources.

Management Comments

• "Soluna is thrilled to develop this new partnership with an industry leader like Canaan. This agreement reflects our shared commitment to delivering high-performance computing solutions powered by renewable energy. With Project Dorothy 2 now online and operational, we're doubling down on our mission to make renewable energy a global superpower." John Belizaire, CEO of Soluna.
• "Our partnership with Soluna is another significant step in advancing our North American self-mining strategy. Each of the partnerships that we have entered into brings a new dimension to our efforts to expand within the region, and we are excited to work with Soluna and utilize their cutting-edge data center." Nangeng Zhang, Chairman and Chief Executive Officer of Canaan.
• "Coupling our efficient and resilient Avalon A15 XP miners with Soluna's infrastructure should be a win for both companies." Nangeng Zhang, Chairman and Chief Executive Officer of Canaan.

Industry Context

The partnership highlights the growing trend of integrating Bitcoin mining with renewable energy sources, particularly wind power, to enhance sustainability and reduce operational costs. It also reflects the ongoing expansion of major crypto mining players like Canaan into North America, leveraging specialized hosting providers like Soluna to secure reliable and cost-efficient energy for their operations.

Comparison to Industry Standards

• The deployment of 20 MW of Avalon A15 XP miners at Project Dorothy, utilizing behind-the-meter wind power, aligns with the industry trend towards sustainable and cost-efficient Bitcoin mining operations.
• Soluna's strategy of co-locating data centers with renewable power plants is a recognized best practice for reducing energy costs and carbon footprint in high-performance computing, comparable to leading green mining initiatives.
• Canaan's expansion into North America through strategic hosting agreements is consistent with other major ASIC manufacturers and mining companies seeking diversified geographic footprints and access to competitive energy markets, such as Marathon Digital Holdings or Riot Platforms.

Legal Proceedings

• NYDIG ABL LLC filed a complaint against Soluna MC Borrowing LLC 2021-1 and Soluna MC LLC regarding a series of loans (NYDIG Loans) made pursuant to a Master Equipment Finance Agreement dated December 30, 2021.
• A Stipulation and Agreed Judgment was approved by the Marshall Circuit Court on February 23, 2024, granting judgment to NYDIG for $9,182,646.13 plus interest, making the Soluna Parties jointly and severally liable.
• On September 29, 2025, the Soluna Parties and NYDIG entered into a Settlement Agreement to fully settle and resolve the Agreed Judgment Amount and all other matters relating to the NYDIG Loans.

Stakeholder Impact

• Shareholders: The resolution of a significant legal liability reduces financial uncertainty and risk. The new hosting agreement with Canaan could lead to increased revenue and operational scale, potentially enhancing shareholder value.
• Creditors: The settlement agreement provides a structured payment plan for the outstanding debt to NYDIG, offering clarity on repayment and mitigating the risk of further litigation.
• Customers (Canaan): Canaan gains access to reliable, low-cost, and sustainable energy for its mining operations, strengthening its North American footprint and operational efficiency.
• Employees: Continued operational expansion and strategic partnerships can provide job stability and growth opportunities within the company.

Next Steps

• Soluna Parties to make agreed-upon settlement payments to NYDIG as per the Settlement Agreement.
• Deployment of 20 MW of Avalon A15 XP Bitcoin miners at Project Dorothy in Briscoe County, Texas, expected in the first quarter of 2026.
• Canaan Inc. to continue expanding its North American presence and self-mining strategy.
• Soluna Holdings, Inc. to continue monetizing its 2.8 GW+ pipeline of Renewable Computing projects for Bitcoin mining and AI workloads.

Key Dates

Recommendation

The company has successfully settled a material legal judgment of over $9 million, removing a significant overhang and financial uncertainty. Concurrently, it has secured a strategic hosting agreement with Canaan Inc. to deploy 20 MW of Bitcoin miners, which is expected to come online in Q1 2026. This partnership expands Soluna's operational capacity, leverages its renewable energy infrastructure, and aligns with its growth strategy in high-performance computing. These developments collectively enhance the company's financial stability, operational scale, and future revenue potential, making it an attractive investment.

Keywords

Soluna Holdings, Canaan Inc., Bitcoin mining, renewable energy, Project Dorothy, NYDIG settlement, hosting agreement, digital infrastructure, wind power, ASIC miners, Texas, SLNH, CAN