Soluna Holdings, Inc. (NASDAQ: SLNH) has fully repaid the $28.7 million in principal outstanding under its credit facility with Generate Capital, PBC, according to a press release from the company.

Soluna repaid $19.1 million of the debt in August 2026 and cleared the remaining balance in October 2026, resulting in the termination of the facility. Generate's liens on the related project assets have been released, which the company said allows for the transition of power to the Dorothy 3 AI campus.

With the repayment complete, Soluna's total debt principal fell from $37.9 million as of June 30, 2026, to $9.2 million, a reduction of approximately 76%.

"Repaying the Generate facility in full retires this portion of our debt and releases the liens on those project assets," said Michael Picchi, CFO of Soluna. "It simplifies our capital structure as we continue developing our AI and high-performance computing pipeline."

Soluna originally entered into the Generate credit facility in September 2025 to refinance its Dorothy 1A and Dorothy 2 projects and fund the completion of Dorothy 2. The financing also supported Soluna's April 2026 acquisition of the 150 MW Briscoe Wind Farm, the renewable generation asset powering Project Dorothy.

"Generate's support helped us unlock equity in our Dorothy projects, complete Dorothy 2 and acquire the Briscoe Wind Farm," said John Belizaire, CEO of Soluna.