Soluna (SLNH) stock plummeted on Wednesday after the crypto-related sustainable computing solutions company priced a public offering for its shares. The company will sell 9,090,909 units for 55 cents each. These units each contain one share of SLNH stock, one Series A warrant, and one Series B warrant.
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The Series A and Series B warrants can each be exercised to purchase an additional share of SLNH stock. The warrants both have a 55-cent exercise price. Both of these warrants are exercisable immediately, with the Series A ones expiring in five years and the Series B ones expiring in two years.
Soluna expects to generate $5 million in gross proceeds from the offering, not including the exercise of any warrants. It plans to use this money for working capital, project-level equity, and general corporate purposes.
Soluna Stock Movement Today
Soluna stock was down 41.13% in pre-market trading on Wednesday, following a 31.16% drop yesterday. Investors will note that SLNH stock was down 63.61% year to date and 88.15% over the past 12 months. Today’s fall came with heavy trading, as nearly 6 million shares changed hands, compared to a three-month daily average of about 1.73 million units.
The negative reaction from investors makes sense. The public offering is priced well below the prior closing price for SLNH stock. Additionally, the massive amount of shares in the offering and available through warrants would majorly dilute the stakes of current investors.
Is Soluna Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of Soluna is thin. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates SLNH stock a Neutral (48) with a $1 price target, suggesting a potential 30.87% upside for the shares. It said the company faces “significant financial challenges, with negative earnings and cash flows, heavily impacting its overall score.”
