Crypto mining data center developer Soluna Holdings has seen its stock drop more than 40% since Friday when it put forward an equity capital raise.
The deal is priced at $1.44 per share, with the 1,388,889 shares totaling $2 million, the company said Monday.
The stock hit a low Monday morning at $0.88 (down from $1.81 on Friday), but later in the day recovered to $1.19.
The new capital will be put towards the “acquisition, development and growth of data centers, including cryptocurrency mining processors,” including its site in Texas.
The company is currently developing a 50-megawatt data center connected to a wind farm in that state, which is expected to go online in the last quarter of 2022, the company said on its website.
In addition to the $2 million in shares, Soluna is also issuing 593,065 shares to Spring Lane, which will raise at least an additional $850,000.