Key Highlights

  • Shares are trading 10.48% higher at $0.72 on Wednesday, October 28, 2026.
  • Applied Digital is expected to hold 51% and Soluna 49% of a planned 50 MW AI data center at Dorothy 3 in Texas.
  • Soluna said on October 26 that it fully repaid its Generate Capital debt, cutting total debt principal 76% since June 30.
  • Second-quarter revenue was $15.1 million, up 145% from a year earlier, with unrestricted cash of $113.4 million.
  • Short interest was 25,272,654 shares at the October 15 settlement, equal to 2.87 days of average volume.

Soluna Rebound: Why Are Shares Up 10% After Two October Announcements?

Soluna Holdings (NASDAQ:SLNH) shares are trading 10.48% higher at $0.72 on Wednesday, October 28, 2026, an implied prior close of about $0.65 (calculated). The stock closed at $0.5197 on Monday, October 26, near its 52-week low of $0.5165.

No new company release is dated today. Recent news includes an October 21 partnership with Applied Digital (NASDAQ:APLD) and an October 26 statement that Soluna repaid its Generate Capital debt in full.

Soluna develops and runs data centers beside wind, solar or hydroelectric plants, hosting Bitcoin mining and AI workloads. The market capitalization is about $176 million at $0.72 (calculated from 244.59 million shares).

Dorothy 3 With Applied Digital: What Does the 51/49 Structure Involve?

The companies plan a jointly owned project company to build a 50 MW critical IT facility for AI and high-performance computing near Silverton, Texas. Applied Digital is expected to supply development capital and hold 51%, while Soluna contributes part of the Dorothy 3 site, including land and power-related assets, for 49%.

Power is expected to come from the 150 MW Briscoe Wind Farm, which Soluna bought on April 1 for a $53.0 million base price. ChronoScale Holdings (NASDAQ:CHRN), majority owned by Applied Digital, signed a non-binding letter of intent to lease the site.

Closing depends on a county tax abatement, title policies, an operating agreement, and definitive lease and power agreements, and is expected by the end of 2026.

Generate Capital Payoff and Q2 Figures: How Strong Is the Balance Sheet?

In August Soluna agreed to prepay about $19.1 million across two Generate Capital tranches. Total debt was $33.1 million at June 30, and the October 26 release says total debt principal is down 76% since then.

Second-quarter revenue was $15.1 million, up 145% year over year, with data hosting at $12.7 million. Gross profit was $766,000, the net loss was $22.6 million ($20.7 million attributable to Soluna, or $0.18 per share), and adjusted EBITDA was a loss of $1.6 million.

Unrestricted cash was $113.4 million at quarter-end, and about $23.6 million was raised through an at-the-market program afterward. About 192 MW was operating, with a development pipeline of roughly 6.3 GW.

Hosting Contracts and Short Interest: What Could Amplify the Move?

Kati 1 delivered 48 MW to Galaxy Digital (NASDAQ:GLXY) from April 1, and a September 28 amendment lifted the Bitdeer (NASDAQ:BTDR) agreement there to 35 MW.

Short-interest data for the settlement date of October 15, 2026 show 25,272,654 shares sold short, up 195,269 from the prior period, or about 10.3% of shares outstanding (calculated). Days to cover were 2.87, so a pickup in volume could shorten the time needed to close those positions.

What to Watch Next: Applied Digital Closing, October 30 Short Data and Third-Quarter Results

The next short-interest settlement is October 30, 2026, with publication expected around November 10. Soluna's next earnings report is scheduled for November 16, 2026, and the Applied Digital transaction is targeted to close by December 31, 2026, subject to the conditions above.