$SLNH | John Belizaire on McNallie Money: 20 Key Takeaways @jbelizaireCEO latest interview with @McnallieM and @power_analys1s provided an important update on the company's transition into AI infrastructure. One of the most notable points was the targeted delivery of Dorothy 3's first 50 MW in 2027. With preliminary development work already underway and Applied Digital joining as a development partner, Dorothy 3 could become Soluna's first operational AI data center, potentially ahead of Kati 2's initial 100 MW. The interview also provided valuable insight into Soluna's financing strategy, long-term ownership ambitions and opportunities beyond its existing development pipeline. Here are my main takeaways: 1. Applied Digital approached Soluna Belizaire confirmed that Applied Digital's interest was inbound, driven by Soluna's ability to provide access to land and power quickly. 2. Speed to power is Soluna's competitive advantage Its behind-the-meter model and existing energy infrastructure can shorten the time required to develop AI facilities. 3. Demand extends beyond gigawatt campuses John highlighted growing interest in smaller facilities supporting AI inference and targeted training workloads. 4. Dorothy 3 targets delivery in 2027 The first phase comprises 50 MW of critical IT capacity, representing approximately 75 MW of total facility power. 5. Applied Digital takes 51%; Soluna retains 49% The JV allows Soluna to retain substantial ownership while sharing development responsibilities and capital requirements. 6. Soluna contributes $18.75 million in project value Its initial contribution consists primarily of powered land and related project assets. 7. Applied Digital brings construction and financing capabilities The partnership provides access to established suppliers, engineering expertise, operating experience and institutional financing relationships. 8. Preliminary development work has already begun The transaction documents confirm certain development activities and eligible equipment-related expenditures ahead of the JV closing. 9. The JV is expected to close before year-end Soluna and Applied Digital are working toward completing the remaining transaction requirements during 2026. 10. ChronoScale is the prospective tenant Applied Digital's subsidiary has signed a nonbinding LOI for a triple-net lease at the planned Dorothy 3 facility. 11. Lease pricing depends on yield-on-cost John discussed how required infrastructure returns, lease duration and tenant credit quality influence rental economics. 12. Soluna is targeting infrastructure cash flows Rather than relying on GPU rental-price appreciation, the company intends to generate recurring income from data-center ownership and operations. 13. Project financing will combine debt and equity Belizaire illustrated a potential $600 million project financed with approximately $400 million in debt and $200 million in equity. Those figures were examples, not financing commitments. 14. Dorothy 3 could generate AI-related revenue in 2027 If the first phase enters service and lease payments commence during 2027, Soluna could begin earning AI infrastructure income before Kati 2 reaches commercial operation. 15. The first 50 MW is only the beginning of Dorothy 3 Soluna retains flexibility to pursue subsequent development phases through different JV arrangements or potentially greater direct ownership. 16. Kati 2 is advancing on a parallel development track Its initial approximately 100 MW represents a larger first phase, with the relevant delivery window extending into late 2027 or early 2028. 17. Soluna owns the 150 MW Briscoe Wind Farm That creates an opportunity to participate in the economics of both renewable power generation and the associated AI infrastructure.

$SLNH | Why Soluna's AI Revenue Could Arrive Much Sooner Than Investors Expect Much of the discussion surrounding Soluna's AI infrastructure transition has focused on the company's longer-term development pipeline and the substantial capacity expected to come online in 2028 and beyond. But following the recently announced Applied Digital partnership and John Belizaire's latest interview, I believe investors should take a closer look at what could happen during 2027. The first 50 MW at Dorothy 3 may arrive considerably sooner than many previously anticipated. One particularly important detail appeared in Soluna's October 21 SEC filing. Development work at Dorothy 3 had already begun when the partnership was announced. The filing also confirms that Applied Digital can fund development activities and procure long-lead equipment before the joint venture formally closes, with qualifying expenditures credited toward its initial capital contribution. This means the development process is already moving forward while the companies complete the remaining transaction documents. Applied Digital's involvement is particularly significant. The company brings extensive experience developing and operating large-scale AI infrastructure, established supply-chain relationships and access to capital markets. Soluna contributes the development land, its existing electrical infrastructure and access to renewable power from the company-owned 150 MW Briscoe Wind Farm. Another important addition is Ryan Carver, Soluna's recently appointed Chief Development Officer. Carver previously served as Microsoft's Senior Director of AI Construction & Site Development and led the construction program at the company's Fairwater AI campus in Wisconsin. In his latest Power Analysis interview, John Belizaire specifically highlighted the combined capabilities of Applied Digital and Carver, explaining that the objective is to accelerate construction and deliver an operating Dorothy 3 facility during 2027. Could that happen as early as Q2 2027? I believe an accelerated scenario deserves consideration. A possible development sequence would look like this: - Q4 2026: Complete the joint venture, finalize the ChronoScale lease and advance project financing. - Q1 2027: Accelerate construction, equipment procurement and installation. - Q2 2027: Target operational readiness for the initial 50 MW. - H2 2027: Begin generating AI-related rental income, assuming the facility is delivered and the lease has commenced. Q2 is my optimistic execution scenario. Management has communicated a 2027 delivery objective without specifying a quarter. The potential financial implications are substantial for a company at Soluna's current stage of development. Under the planned joint venture, Soluna will retain a 49% ownership interest in the data center, with Applied Digital holding 51%. ChronoScale has signed a letter of intent for a triple-net lease, a structure under which the tenant assumes a substantial portion of the property's operating costs. Once operational, the facility could begin generating recurring rental income for the joint venture, allowing Soluna to participate in the project's earnings and eventual cash distributions. Meanwhile, Briscoe Wind could benefit from supplying electricity to the new AI facility under long-term power arrangements. Soluna therefore has an opportunity to capture value from both its AI infrastructure investment and the renewable generation asset supporting it. But the first 50 MW could prove even more valuable as an operating reference project. Soluna has already demonstrated its ability to develop and operate substantial Bitcoin hosting capacity, including the successful completion of Kati 1 on schedule and within its infrastructure budget. Delivering an advanced AI data center would represent the next major step.

$SLNH | The Microsoft Trail: What ChronoScale's SEC Filings Reveal About Soluna's Dorothy 3 On October 14, ChronoScale disclosed plans to lease a Texas data center from a new joint venture involving Applied Digital and an unnamed third party that already controlled the development site. The facility was intended to support ChronoScale's existing GPU services agreement with Microsoft. Seven days later, Soluna announced a 50 MW AI data center joint venture with Applied Digital at Project Dorothy 3 in Texas, identifying ChronoScale as the prospective tenant. The similarities between these arrangements warrant a closer examination. The sequence of events is particularly revealing: - August 6: ChronoScale entered into an agreement to provide Microsoft with approximately 50 MW of AI computing capacity in Texas, using NVIDIA GB300 infrastructure. - October 11: ChronoScale entered into a term sheet with Applied Digital concerning a $50 million upfront advance for tenant fit-out costs at a third-party data center in Texas. - October 14: ChronoScale's SEC filing described the planned joint venture with Applied Digital and an existing site owner. - October 20–21: Soluna and Applied Digital formalized and announced their Dorothy 3 partnership. Applied Digital is expected to hold 51%, with Soluna retaining 49%. The most important detail comes directly from ChronoScale's SEC filing. The company states that the proposed lease is expected to: "provide the compute capacity necessary to fulfill the Company's deployment agreement with Microsoft." ChronoScale is therefore describing a specific infrastructure requirement connected to an existing Microsoft agreement, rather than simply outlining future demand. The disclosed structure closely resembles Soluna's newly announced partnership. Soluna owns the Dorothy 3 development land in Briscoe County, adjacent to its 150 MW Briscoe Wind Farm. Its existing Dorothy operations also provide an established electrical infrastructure footprint. Applied Digital brings its experience developing, financing and operating large AI data centers. ChronoScale, meanwhile, has signed a letter of intent to lease the proposed 50 MW facility. The alignment in location, capacity, ownership structure and commercial relationships makes Dorothy 3 a compelling candidate for the Texas facility described in ChronoScale's filing. The construction strategy strengthens that possibility. In his latest Power Analysis interview, Soluna CEO John Belizaire explained that the partners intend to accelerate development and deliver an operating Dorothy 3 facility during 2027. He emphasized the capabilities of Applied Digital alongside the experience Soluna has brought in through Ryan Carver, its recently appointed Chief Development Officer. Carver previously served as Microsoft's Senior Director of AI Construction & Site Development, where he led the construction program at Microsoft's Fairwater AI campus in Wisconsin. His background includes overseeing hyperscale development from power procurement and site selection through engineering, construction, commissioning and operational delivery. That experience is now being applied directly to Soluna's AI infrastructure platform. Combined with Applied Digital's construction organization, supply-chain relationships and capital-market capabilities, Soluna has assembled a development team familiar with the complexity and urgency of hyperscale AI projects. The precise delivery schedule has not yet been disclosed. ChronoScale's Microsoft agreement currently targets GPU deployment tranches in February and March 2027, with extensions possible, while John has identified 2027 as Dorothy 3's target delivery year. What is clear from his comments is that speed has become a central consideration in how the first facility will be developed. For Soluna, the potential commercial relationship is particularly attractive.

$SLNH | How Joint Ventures Could Accelerate Soluna’s 6.3 GW Development Pipeline Soluna's partnership with Applied Digital at Dorothy 3 offers a clearer picture of how the company intends to finance and develop its expanding AI infrastructure portfolio. With approximately 6.3 GW in its development pipeline, including around 1.6 GW in planning and development and another 4.5 GW being assessed with power partners, Soluna has opportunities extending far beyond its two flagship AI projects. Developing infrastructure on that scale requires considerable financial resources, specialized engineering expertise and extensive construction capabilities. Attempting to finance and build every campus independently would consume substantial capital and potentially limit how quickly the company could expand. Joint ventures offer a practical way to address those requirements. At Dorothy 3, Applied Digital brings substantial experience in hyperscale construction and capital formation, alongside established supplier relationships. Soluna contributes its site, renewable-power infrastructure and expertise in integrating large computing loads with the electricity grid. The proposed project also has a potential tenant, ChronoScale, which has signed a non-binding letter of intent for a triple-net lease. At Kati 2, Metrobloks contributes its own data center development and operational capabilities through a separately structured partnership. By combining resources with established industry partners, Soluna can pursue multiple developments without having to provide the full amount of capital or execute every aspect of construction independently. Rather than concentrating its resources on one major project and waiting for that facility to become operational before advancing the next, Soluna can pursue different construction schedules, financing arrangements and customer agreements across its portfolio. As individual facilities enter operation, they could begin generating recurring revenue while other projects remain under development. Over time, this approach could produce several important advantages: - Faster expansion: Multiple AI campuses can advance simultaneously instead of competing for the same limited financial and operational resources. - More efficient financing: Sharing project-level capital requirements can reduce the amount Soluna needs to raise directly, preserving financial flexibility for additional developments. - Growing recurring income: Completed facilities could progressively contribute new revenue streams and distributable cash flow. - Greater financial capacity: A larger portfolio of operating assets and established rental income could improve access to institutional financing and support reinvestment into subsequent projects. - Improved execution: Experience gained through successive developments could help standardize engineering, procurement and construction processes, potentially reducing costs and shortening delivery schedules. Soluna also enters this transition with an existing operating business. Its Bitcoin hosting facilities provide an established revenue base, while the acquisition of the 150 MW Briscoe Wind Farm and consolidation of Dorothy 1 have strengthened its ownership of energy and computing infrastructure. At Dorothy 3, the company's economic interests could extend beyond its equity stake in the proposed data center through its ownership of the adjacent wind generation asset, depending on the final power-supply agreements. Another important aspect of the strategy is the development of Soluna's internal hyperscale organization. The company has recruited Ryan Carver as Chief Development Officer following his experience leading major AI data center construction programs at Microsoft, including work on the Fairwater campus in Wisconsin. Neil Robinson subsequently joined as Vice President of Construction Management, also from Microsoft, where he served as Director of AI Construction.

$SLNH $APLD | Soluna and Applied Digital Strike 50 MW AI Data Center Deal — The ChronoScale Connection Is Now Confirmed (Impressive milestone for Soluna. Well done, @jbelizaireCEO!) On October 21, Soluna Holdings announced a definitive transaction agreement with Applied Digital ($APLD) to establish a joint venture for the development of a 50 MW critical IT AI/HPC data center at Project Dorothy 3 in Briscoe County, Texas. For those who have followed the ChronoScale developments we examined last week, today's announcement is particularly significant. What previously appeared through regulatory filings and corporate connections has now developed into a publicly announced commercial agreement. The transaction Under the proposed joint venture structure: - Applied Digital — 51% ownership: Expected to contribute development capital and bring its experience building and operating large-scale AI infrastructure. - Soluna — 49% ownership: Expected to contribute a portion of its Dorothy 3 site, including land and power-related project assets. - Initial development — 50 MW critical IT: A purpose-built AI/HPC facility drawing electricity from both the 150 MW Briscoe Wind Farm and the ERCOT grid. - Proposed tenant — ChronoScale ($CHRN): Applied Digital's majority-owned AI compute subsidiary has signed a non-binding letter of intent for a triple-net lease. - Expected closing — Q4 2026: Subject to the remaining approvals, definitive agreements and other closing conditions. The arrangement brings together two complementary capabilities. Soluna has spent years assembling renewable generation, land, interconnection infrastructure and operational experience at Dorothy. Applied Digital brings a track record in developing institutional-scale AI data centers, securing tenants and arranging construction financing. For Soluna, the proposed structure creates a route to participate in a capital-intensive AI development while bringing in a partner expected to fund its development. The ChronoScale connection: How we got here Several developments now form a revealing timeline. August 27: ChronoScale announced plans for a 50 MW AI computing deployment in North America in partnership with Microsoft. The deployment was expected to feature NVIDIA GB300 NVL72 systems and advanced liquid cooling. September 8: The Texas Comptroller's official data center registry recorded Project Dorothy 3A under STX-01 LLC, explicitly identifying ChronoScale Corporation as the occupant. September 14: Soluna announced that ERCOT had conditionally classified 100 MW at its existing Dorothy campus as Base Load under Batch Zero. The company also confirmed that an additional 50 MW interconnection request was under study. October 21: Soluna publicly confirmed its agreement with Applied Digital to develop the 50 MW Dorothy 3 project, alongside ChronoScale's letter of intent to lease the facility. The significance of today's announcement is that the ChronoScale–Dorothy 3 relationship is no longer merely an inference drawn from administrative records. It is now explicitly acknowledged by Soluna in a transaction announcement. There is still an important distinction concerning Microsoft. ChronoScale's previously announced 50 MW Microsoft deployment is documented, but today's release does not identify Microsoft as the ultimate customer at Dorothy 3 or establish that the two 50 MW developments are the same project. That remains an interesting connection to monitor. Why this matters for Soluna shareholders The economics of AI data center development are fundamentally different from Bitcoin hosting. A modern, high-density AI facility requires substantial investment in electrical infrastructure, cooling, buildings and supporting systems. Financing and development expertise are therefore as important as securing land and electricity. Today's agreement addresses an important part of that challenge.

$SLNH | Former Google Infrastructure Executive Dan Golding Joins Soluna’s Board as AI Development Advances Soluna Holdings announced today that shareholders have elected Dan Golding, a former Google infrastructure executive and a veteran of the global data center industry, to its Board of Directors following the company's October 16 annual meeting. The appointment deserves attention, particularly given Golding's background and his longstanding involvement with Soluna's AI infrastructure strategy. Golding has served on Soluna's Advisory Board since November 2023, meaning he has spent nearly three years working with management as the company developed its approach to renewable-powered AI data centers. His election now formalizes that relationship at the board level, giving Soluna greater access to his expertise in corporate oversight and strategic decision-making. His professional background is substantial: - Google (2014–2023): Held senior infrastructure leadership positions, including Managing Director of Global Infrastructure. His experience extended across Google's global networking and advanced data center technology teams. - $25 billion+ in data center infrastructure: According to his industry biographies, Golding participated in engineering, design and construction teams responsible for more than $25 billion in data center projects, representing thousands of megawatts of infrastructure. - $600 million+ in leasing transactions: His background includes negotiating, evaluating and participating in wholesale data center leasing transactions exceeding $600 million. - Iron Mountain and RagingWire (now NTT Data Centers): Previously held senior engineering and operational leadership positions at major data center operators. - ASG: Currently serves as Chief Technology Officer, advising on digital infrastructure, hyperscale development and technology strategy. What makes this appointment particularly relevant is the combination of engineering, commercial and operational experience. Developing a hyperscale AI campus requires considerably more than securing land and electricity. Developers must translate customer requirements into facilities capable of supporting increasingly demanding computing workloads, while coordinating electrical infrastructure, cooling, networking, construction schedules and financing. These are areas where Golding has spent much of his career. For Soluna, that expertise could be valuable across several priorities: 1. Project Kati 2: Supporting decisions around hyperscale campus architecture, high-density computing requirements, power resilience, technical specifications and phased development. 2. Project Dorothy 3: Providing additional technical and strategic oversight as Soluna advances its next major AI infrastructure campus. 3. Customer negotiations: Helping management understand how sophisticated hyperscale and AI infrastructure customers evaluate proposed facilities, including operational reliability, deployment timelines, technical flexibility and commercial requirements. 4. Project execution and financing: Applying experience with large-scale developments and leasing transactions to help Soluna structure projects that meet customer expectations and the requirements of infrastructure capital providers. An additional detail worth highlighting is Golding's public commentary on the data center industry. Through his Age of Fake Datacenters research series, he has emphasized the importance of understanding actual computing workloads and distinguishing executable infrastructure developments from speculative project announcements. That perspective is particularly relevant as the industry experiences unprecedented AI infrastructure investment and competition for available power.

$SLNH | The Selloff, the Fundamentals, and Why I Remain Conviction-Bullish on Soluna Last week, @jbelizaireCEO made it clear that nothing fundamental has changed in Soluna's business outlook. The company continues to execute its strategy, yet the stock has been trading as though its long-term opportunity has somehow deteriorated. I believe the recent selloff is the result of several factors converging at once, creating an almost perfect storm of negative sentiment. First, the macro environment. Rising Treasury yields and renewed concerns about interest rates have put considerable pressure on growth stocks, particularly smaller companies tied to capital-intensive AI infrastructure development. Soluna has not been immune to that broader market weakness. Second, disappointment over the Kati 2 tenant timeline. Many short-term investors expected a definitive agreement during Q3. When that did not materialize, frustration turned into speculation about substantial delays. But missing an anticipated announcement window does not necessarily mean negotiations have stalled or that the underlying project has deteriorated. Third, dilution concerns. Some investors expected a major tenant announcement before the shareholder vote to expand the company's authorized common shares to one billion. The approval has created additional anxiety about future dilution, even though increasing authorized shares is not the same as actually issuing them. Financing flexibility and dilution risk need to be evaluated separately. Fourth, the psychological impact of trading below $1. This has introduced another layer of uncertainty, with investors increasingly discussing potential Nasdaq compliance issues, delisting and reverse splits. These concerns can reinforce selling pressure even though trading below $1 does not trigger immediate delisting. Finally, short selling and momentum-driven trading. I suspect bearish positioning has contributed to the pressure, particularly in an environment where uncertainty makes less-informed shareholders more vulnerable to panic. The precise contribution of short sellers is difficult to establish, but the conditions have certainly been favorable for bearish speculation. What I find remarkable is how little attention is being paid to the progress Soluna has already made. Kati 1 has reached its full 83 MW operating capacity. The company has consolidated ownership of Project Dorothy 1 and acquired the 150 MW Briscoe Wind Farm. Its AI development pipeline has expanded, while Kati 2 and Dorothy 3 have secured important regulatory and development milestones. The company also reported $113.4 million in unrestricted cash at the end of Q2, providing a meaningful financial cushion as it advances its AI strategy. That figure is a historical balance, not a guarantee of today's available liquidity, but it demonstrates how significantly Soluna strengthened its balance sheet earlier this year. And then there is the part I believe the market is seriously underestimating. Kati 2 and Dorothy 3 are progressing in parallel, not sequentially. We are looking at two major AI campuses with approximately 650 MW of planned critical IT capacity combined. Kati 2 already has a tenant LOI, while Dorothy 3 has attracted considerable customer interest. My expectation is that the eventual commercial agreements for these developments could arrive much closer together than the market currently anticipates. Furthermore, the first definitive agreement would represent far more than an isolated milestone. It could validate Soluna's development model, strengthen its ability to secure project-level financing and create momentum for subsequent phases and additional tenant agreements. In my view, that is where the potential acceleration begins.