Soluna Holdings, Inc., the parent company of Soluna Computing, Inc. (SCI), a developer of green data centers for cryptocurrency mining and other intensive computing, announced its subsidiary Soluna MC Borrowing 2021-1 LLC has entered into a master equipment financing agreement with NYDIG ABL LLC which outlined the framework for a financing for up to approximately $14.4 million.

Concurrent with this financing agreement, Soluna MC Borrowing entered into a purchase agreement for 110 PH/s of Bitmain S19 equipment that is expected to be delivered from February to June.

Michael Toporek, CEO of Soluna, said, “This equipment financing agreement with NYDIG gives us non-dilutive capital to continue scaling operations as we ramp up our hash rate.”

Soluna focuses on serving as a problem solver for the renewable energy sector. Soluna’s modular data centers convert excess renewable electricity into clean computing. In 2022, Soluna expects to address the significant market opportunity for batchable computing, which includes scientific research, artificial intelligence and video processing, to diversify its computing applications beyond cryptocurrency mining.

Under the terms of the agreement, the aggregate principal outstanding of such loans will bear interest between 12-14 percent and will be repaid over 15-60 months. The debt is guaranteed by the company’s indirect wholly owned subsidiary, Soluna MC LLC, formerly EcoChain Block LLC, and is collateralized by the assets purchased by Soluna MC Borrowing and certain digital assets of such borrower.

Subsequently, the parties negotiated the specific terms of each equipment financing transaction as well as the terms upon which the investors would consent to the transactions contemplated by the Master Agreement. On Jan. 14, Soluna MC Borrowing borrowed loans under the Master Agreement in the aggregate principal amount of approximately $4.6 million that will bear interest at 14 percent and will be repaid over 24 months.