The facilities will be powered by the Briscoe wind farm; ChronoScale signs a tri-pure lease intention letter.

Albany, New York, October 21, 2026 / PRNewswire / — Green data center developers Soluna Holdings and Inc (Nasdaq ticker: SLNH, referred to as “Soluna”) announced today that they have signed a final agreement (“Transaction Agreement”) with Applied Digital Corporation (Nasdaq ticker: APLD, referred to as “Applied”) to jointly establish a jointly held company (“Project Company”). The purpose of this partnership is to develop a planned 50-megawatt data center at the Project Dorothy site near Silverton, Texas (Brisco County), as well as the Briscoe wind farm (“Briscoe Wind”), for artificial intelligence (“AI”) and high-performance computing (“HPC”) purposes (“the Project”).

According to the transaction agreement, Soluna is expected to inject a portion of the assets from 3 sites into the project company, including land and project assets related to electricity; Applied is expected to provide funding to support the development of the project. Upon completion of the transactions contemplated under the transaction agreement, Applied is expected to hold 51% of the equity in the project company, while Soluna is expected to hold the remaining 49% of the equity.

The delivery of the transaction contemplated under the transaction agreement still requires fulfillment of several prerequisites, including obtaining tax exemption approval for the project in Brewster County, Texas; acquiring property insurance; gaining approval at the corporate level; completing negotiations and signing the operating agreement for the project company; signing the final lease agreement, power agreement, and other final agreements; as well as meeting other customary conditions. The aforementioned transaction is expected to be completed by the end of this calendar year.

Soluna CEO John Belizaire stated: "We have long been saying that the constraint with AI lies in energy acquisition, not the chip itself. We have created Soluna precisely to bring the load to the power generation side, so that when demand arises, the electricity is already ready. Our collaboration with Applied in Dorothy 3 is a concrete implementation of this strategy: our site and wind power resources, combined with a proven partner in AI for data center construction and operation. We look forward to completing the remaining steps, including the tax incentive process in Bristol County, and working together with the local community to advance this project."

Project Dorothy 3

Dorothy 3 is a planned AI data center that will be constructed in conjunction with Briscoe Wind. Briscoe Wind is a 150-megawatt wind farm located in Brewster County, Texas, near the Dorothy 1 and Dorothy 2 projects of Soluna. According to the final plan, the first phase of Dorothy 3 (a 50-megawatt key IT) is expected to draw power from both Briscoe Wind and the grid simultaneously.

ChronoScale Letter of Intent

ChronoScale Holdings Corporation (Nasdaq ticker: CHRN) is an accelerated computing platform designed to support high-intensity AI workloads, and it is also a publicly traded company controlled by Applied. The company has signed a non-binding letter of intent to lease the facilities mentioned in the plan. However, negotiations and signing of the final lease agreement are still required, and there is no guarantee that the final lease agreement will be signed according to the terms outlined in the letter of intent, or that it will indeed be signed at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the ‘Safe Harbor’ provisions of the U.S. Private Securities Litigation Reform Act of 1995. Except for historical facts, all statements regarding Soluna’s current views and assumptions about future events related to its business are forward-looking statements, including but not limited to: the ability to complete the transactions contemplated under the transaction agreement according to the proposed terms and schedule; the ability to meet the relevant delivery prerequisites, including tax exemption approvals; the establishment of the project company and the negotiation of its operating agreements; obtaining lease property insurance; Soluna, Applied, and ChronoScale obtaining various company approvals; negotiations and signing of the final lease agreement and the final power supply agreement with ChronoScale; the development, financing, construction, power transmission, and operation of the project; whether the project development may be more difficult, time-consuming, or costly than anticipated; whether the expected project revenues can be realized; and the development project reserves of Soluna.

Such forward-looking statements can typically be identified by phrases such as “will”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate”, “confident”, etc. Soluna may also make forward-looking statements, either in writing or orally, in its periodic reports submitted to the U.S. Securities and Exchange Commission (SEC), press releases, and other written materials, as well as in oral statements made by its executives, directors, or employees to third parties. Any statements that are not historical facts, including but not limited to statements regarding Soluna's beliefs and expectations, are considered forward-looking statements.

Forward-looking statements carry inherent risks and uncertainties, including but not limited to: Soluna's ability to complete the construction of its data center campus as planned; changes in infrastructure requirements for AI and HPC and their impact on future plans; costs related to the operation and strategy of HPC; Soluna's ability to deliver services on time and complete installations under the lease agreement; Soluna's ability to raise additional funds for ongoing data center construction and operations; dependence on major customers; power or other supply interruptions and equipment failures; inability to comply with regulatory requirements, regulatory developments, and changes; cash flow and financing channels; maintenance of third-party relationships; as well as debt and equity capital market conditions. For more information regarding these risks and uncertainties, please refer to Soluna's most recent 10-K annual report and 10-Q quarterly reports. All information in this press release is as of the date of issuance of this press release, and unless required by applicable laws, Soluna assumes no obligation to update this information.

Regarding Soluna Holdings, Inc. (Nasdaq ticker: SLNH)

Soluna aims to use computing as a catalyst to turn renewable energy into a global superpower. The company designs, develops, and operates digital infrastructure to convert excess renewable energy into global computing resources. The data centers of Soluna are strategically located in conjunction with wind farms, solar power plants, or hydroelectric stations to support HPC applications, including Bitcoin mining, generative AI, and other compute-intensive applications. Its proprietary software MaestroOS ™ is designed to help build greener power grids while providing cost-effective and sustainable computing solutions with higher returns.