The Future of Crypto Wallet Development: AI, DeFi & Beyond
Earlier, cryptocurrency wallets were primarily used to store, send, and receive digital assets. Nowadays, they are transforming into versatile platforms that facilitate DeFi lending, staking, NFTs, and token swaps within a single interface. The future suggests that wallets will evolve into comprehensive financial super-apps, allowing users to handle all their blockchain activities without the hassle of switching between different platforms.
AI is becoming a significant force in crypto wallet development. By incorporating AI algorithms, wallets can: Provide customized financial information by analyzing user transactions
Predict market trends for better trading options
Automate the portfolio rebalancing process
Identify and thwart fraudulent activities in real-time
With AI-powered wallets, users will receive intelligent investment suggestions, providing valuable analysis to seasoned professionals while simplifying the experience for new users.
The rise of decentralized finance (DeFi) is encouraging wallet developers to incorporate protocols directly into the wallet interface. Future wallets will: Provide direct access to decentralized exchanges (DEXs)
Facilitate instant staking, yield farming, and liquidity provision
Provide seamless lending and borrowing options with just one click
This change will streamline the user experience, making DeFi more accessible, secure, and friendly to beginners.
The future of cryptocurrencies is based on multi-chain functionality, and wallets are evolving to enable smooth asset transfers across different blockchains. Features that will soon become common include: Cross-chain swaps
Integrated asset dashboards
Layer-2 integration to reduce fees
Users will no longer be limited to just Ethereum, Bitcoin, or Solana; they will have the freedom to connect to any blockchain ecosystem through a single interface.
When it comes to security, it is always a major concern. Future wallets will use: Multi-party computation (MPC) to eliminate single points of failure
Biometric authentication for an additional layer of security
Hardware wallet integration for cold storage protection
Combined with AI-powered threat detection capabilities, these strategies will make it nearly impossible for wallets to be hacked.
Soon, wallets will serve as digital IDs in the Web3 landscape. They will feature decentralized identifiers (DIDs) and verifiable credentials, allowing users to: Log in to dApps without passwords
Verify their identity without exposing sensitive information
Maintain control over their personal data
This development will enhance privacy, trust, and decentralization.
AI is not just about boosting security and analytics; it is set to revolutionize the way users interact with their wallets. Look forward to these features: Voice-controlled transactions for a hands-free experience
Smart alerts for price fluctuations and market changes
Automated tax reports generated from transaction history
With AI, wallets will become more like personal blockchain assistants instead of just static storage solutions.
DeFi is really transforming when it comes to wallet innovation. Over the next few years, we can expect some exciting changes: Wallets will replace centralized exchanges for most crypto trading activities.
Users will have the ability to leverage liquidity pools, tokenized assets, and on-chain governance right from their wallets.
DeFi protocols will start incorporating real-world assets (RWAs), allowing wallets to handle tokenized real estate, stocks, and commodities.
This will signal a shift from wallets that deal with only crypto to wallets that manage a variety of digital assets.
Looking beyond AI and DeFi, there are several emerging technologies that will shape wallet development: Metaverse integration – Wallets will feature avatars, virtual land, and in-game items.
IoT payments – Smart devices will be able to initiate transactions through blockchain wallets.
Quantum-resistant encryption – preparing wallets for the security challenges of the post-quantum era.
The wallet of the future will serve as a versatile gateway to the decentralized internet, providing seamless access to blockchain-based services.
The future of wallet development is based on being smart, interconnected, and inclusive. With AI-powered personalization, DeFi-enabled financial freedom, and multi-chain interoperability, wallets are turning into comprehensive digital hubs for managing every aspect of blockchain life.
As the crypto landscape continues to evolve, wallet developers that prioritize usability, security, and innovation will be at the forefront. For users, this means more convenience, better security, and more control over their digital assets – bringing us closer to a true decentralized future.
If you are interested in building a next-generation crypto wallet with cutting-edge features like AI integration, DeFi compatibility, and multi-chain support, Coin Developer India offers expert wallet development services tailored to your business needs. With a solid track record in blockchain solutions, they can help you build a secure, scalable, and user-friendly wallet that's ready for the challenges ahead.
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Q2 2025 Revenue & Cost of Revenue by Project Site Q2 2024 Revenue & Cost of Revenue by Project Site Soluna Digital (Dollars in thousands) Project Dorothy 1B Project Dorothy 1A Project Dorothy 2 Project Sophie Other Total Cryptocurrency mining revenue $ 4,484 $ - $ - $ - $ - $ 4,484 Data hosting revenue - 3,567 - 1,331 - 4,898 Demand response services - - - - 293 293 Total revenue 4,484 3,567 - 1,331 293 9,675 Cost of cryptocurrency mining, exclusive of depreciation 1,883 - - - - 1,883 Cost of data hosting revenue, exclusive of depreciation - 1,758 - 418 - 2,176 Cost of cryptocurrency mining revenue- depreciation 1,065 - 1,065 Cost of data hosting revenue- depreciation 290 - 151 - 441 Total cost of revenue $ 2,948 $ 2,048 $ - $ 569 $ - $ 5,565 Gross Profit $ 1,536 $ 1,519 $ - $ 762 $ 293 $ 4,110 Gross Profit Margin % 34.3 % 42.8 % n/a 57.3 % 100.0 % 42.5 % Expand The audited financial statements and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ('SEC') on March 31, 2025, are available online. Our current Investor Presentation can be found here. Our 2025 Earnings Power Presentation can be found here. Soluna's glossary of terms can be found here. 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. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident' and similar statements. Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including the completion of Projects Kati 1, Dorothy 2, Hedy, Ellen, and Annie, and the closing of the land purchase for Project Kati, (ii) statements of future economic performance, and (iii) statements of assumptions underlying other statements about the Company or its business. Soluna may also make written or oral forward-looking statements in its periodic reports to the SEC , in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the SEC. All information provided in this press release is as of the date of the press release, and Soluna undertakes no duty to update such information, except as required under applicable law. Non-GAAP Measures In addition to figures prepared in accordance with generally accepted accounting principles ('GAAP'), Soluna from time to time may present alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow, both on a company basis and on a project-level basis, among others. EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation costs, provision for credit losses, loss on sale of fixed assets, impairment on fixed assets, fair value adjustment on Standby Equity Purchase Agreement draws, and loss (gain) on debt extinguishment and revaluation, net. Project-level measures may not take into account a full allocation of corporate expenses. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principles. Other companies may define these terms in different ways. See our annual report on Form 10-K for the year ended December 31, 2024, for an explanation of how management uses these measures in evaluating its operations. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company's business. About Soluna Holdings, Inc. (Nasdaq: SLNH) Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna's pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications, including Bitcoin Mining, Generative AI, and other compute-intensive applications. Soluna's proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions and superior returns. To learn more, visit and follow us on: Soluna regularly posts important information on its website and encourages investors and potential investors to consult the Soluna investor relations and investor resources sections of its website regularly. Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of June 30, 2025 (Unaudited) and December 31, 2024 (Dollars in thousands, except per share) December 31, 2024 Assets Current Assets: Cash $ 9,878 $ 7,843 Restricted cash 2,215 1,150 Accounts receivable, net (allowance for expected credit losses of $244 at June 30, 2025 and December 31, 2024) 2,649 2,693 Prepaid expenses and other current assets 2,236 1,781 Equipment held for sale - 28 Total Current Assets 16,978 13,495 Restricted cash, noncurrent 3,060 1,460 Other assets 1,107 2,724 Deposits and credits on equipment 1,046 5,145 Property, plant and equipment, net 56,521 47,283 Intangible assets, net 12,957 17,620 Operating lease right-of-use assets 283 313 Total Assets $ 91,952 $ 88,040 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 3,942 $ 2,840 Accrued liabilities 5,934 6,785 Accrued interest payable 3,286 2,275 Contract liability 19,348 20,015 Current portion of debt 13,255 14,444 Income tax payable 62 37 Customer deposits 1,962 1,416 Operating lease liability 63 61 Total Current Liabilities 47,852 47,873 Other liabilities 333 235 Long-term debt 10,021 7,061 Operating lease liability 220 252 Deferred tax liability, net 4,207 5,257 Total Liabilities 62,633 60,678 Commitments and Contingencies (Note 10) Stockholders' Equity: 9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 4,953,545 shares issued and outstanding as of June 30, 2025 and December 31, 2024 5 5 Series B Preferred Stock, par value $0.0001 per share, authorized 187,500; 62,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Common stock, par value $0.001 per share, authorized 75,000,000; 19,095,863 shares issued and 19,055,122 shares outstanding as of June 30, 2025 and 10,647,761 shares issued and 10,607,020 shares outstanding as of December 31, 2024 19 11 Additional paid-in capital 323,557 315,607 Accumulated deficit (329,242 ) (314,304 ) Common stock in treasury, at cost, 40,741 shares at June 30, 2025 and December 31, 2024 (13,798 ) (13,798 ) Total Soluna Holdings, Inc. Stockholders' (Deficit) Equity (19,459 ) (12,479 ) Non-Controlling Interest 48,778 39,841 Total Stockholders' Equity 29,319 27,362 Total Liabilities and Stockholders' Equity $ 91,952 $ 88,040 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Expand Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) For the Three and Six Months Ended June 30, 2025 and 2024 (Dollars in thousands, except per share) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Cryptocurrency mining revenue $ 2,861 $ 4,484 $ 5,860 $ 10,880 Data hosting revenue 3,136 4,898 5,538 10,176 Demand response service revenue 161 293 668 1,168 High-performance computing service revenue - - 28 - Total revenue 6,158 9,675 12,094 22,224 Operating costs: Cost of cryptocurrency mining revenue, exclusive of depreciation 1,767 1,883 3,721 3,724 Cost of data hosting revenue, exclusive of depreciation 1,617 2,176 2,945 4,427 Cost of high-performance computing services - - 7 - Cost of cryptocurrency mining revenue- depreciation 1,074 1,065 2,147 2,152 Cost of data hosting revenue- depreciation 512 441 913 877 Total costs of revenue 4,970 5,565 9,733 11,180 Operating expenses: General and administrative expenses, exclusive of depreciation and amortization 5,397 5,382 11,344 9,378 Depreciation and amortization associated with general and administrative expenses 2,403 2,403 4,807 4,805 Total general and administrative expenses 7,800 7,785 16,151 14,183 Impairment on fixed assets 12 - 12 130 Operating loss (6,624 ) (3,675 ) (13,802 ) (3,269 ) Interest expense (1,196 ) (449 ) (2,034 ) (873 ) (Loss) gain on debt extinguishment and revaluation, net - (5,600 ) 551 (8,698 ) Loss on sale of fixed assets (22 ) (21 ) (22 ) (21 ) Other expense, net (546 ) (49 ) (860 ) (25 ) Loss before income taxes (8,388 ) (9,794 ) (16,167 ) (12,886 ) Income tax benefit, net 608 649 1,033 1,197 Net loss (7,780 ) (9,145 ) (15,134 ) (11,689 ) (Less) Net (loss) income attributable to non-controlling interest (398 ) 1,728 (196 ) 4,438 Net loss attributable to Soluna Holdings, Inc. $ (7,382 ) $ (10,873 ) $ (14,938 ) $ (16,127 ) Basic and Diluted loss per common share: Weighted average shares outstanding (Basic and Diluted) 14,991,125 4,563,696 13,473,983 3,683,558 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Expand Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 2025 and 2024 Six Months Ended June 30, (Dollars in thousands) 2025 2024 Operating Activities Net loss $ (15,134 ) $ (11,689 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 3,121 3,091 Amortization expense 4,746 4,743 Stock-based compensation 3,789 2,029 Deferred income taxes (1,051 ) (1,259 ) Impairment on fixed assets 12 130 Provision for credit losses - 244 Amortization of operating lease asset 30 122 (Gain) loss on debt extinguishment and revaluation, net (551 ) 8,698 Amortization of deferred financing costs and discount on notes 338 59 SEPA fair value revaluation 118 - Loss on sale of fixed assets 22 21 Changes in operating assets and liabilities: Accounts receivable 44 (486 ) Prepaid expenses and other current assets (455 ) (10,767 ) Other long-term assets 1,607 1 Accounts payable 1,102 353 Contract liability (667 ) - Operating lease liabilities (30 ) (123 ) Other liabilities and customer deposits 644 (404 ) Accrued liabilities and interest payable 1,042 1,764 Net cash used in operating activities (1,273 ) (3,473 ) Investing Activities Purchases of property, plant and equipment (12,365 ) (278 ) Purchases of intangible assets (83 ) (64 ) Proceeds from sale of property, plant and equipment - 215 Deposits on equipment, net 4,099 (2,096 ) Net cash used in investing activities (8,349 ) (2,223 ) Financing Activities Proceeds from common stock warrant exercises - 2,304 Proceeds from sale of common stock on SEPA 2,005 - Proceeds from notes 5,269 13,220 Proceeds from sale of common stock on ATM 2,178 - Payments on notes and deferred financing costs (3,275 ) (1,910 ) Payments on ATM (132 ) - Contributions from non-controlling interest 11,852 - Distributions to non-controlling interest (3,575 ) (5,776 ) Net cash provided by financing activities 14,322 7,838 Increase in cash & restricted cash 4,700 2,142 Cash & restricted cash – beginning of period 10,453 10,367 Cash & restricted cash – end of period $ 15,153 $ 12,509 Supplemental Disclosure of Cash Flow Information Interest paid on debt 685 203 Warrant consideration in relation to convertible notes and revaluation of warrant liability - 7,648 Notes converted to common stock - 3,712 Noncash membership distribution accrual 323 456 Warrant consideration in relation to Soluna Cloud - 314 Fair value consideration for Green Cloud issuance of shares 810 - The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Expand Segment Information The following table details revenue, cost of revenues, and other operating costs for the Company's reportable segments for three months ended June 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations: For the three months ended June 30, 2024 Reconciliation of revenue Demand response revenue (a) - 293 9,675 Less: Segment cost of revenue Utility costs 1,322 1,363 - 2,685 Wages, benefits, and employee related costs 190 468 - 658 Facilities and Equipment costs 336 323 - 659 Cost of revenue- depreciation 1,065 441 - 1,506 Other cost of revenue* 127 92 - 219 Total segment cost of revenue 3,040 2,687 - 5,727 General and administrative expenses 106 146 58 310 Impairment on fixed assets - - - - Segment operating income $ 1,338 $ 2,065 $ (58 ) $ 3,345 Expand (a) Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss. * Other cost of revenue includes insurance, outside service costs and margins, and general costs. Expand The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes: (a) Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss (b) The reconciling general and administrative expense, exclusive of depreciation and amortization represent corporate and unallocated general and administrative expenses for the three months ended June 30, 2025 and 2024. Expand The following table details revenue, cost of revenues, and other operating costs for the Company's reportable segments for six months ended June 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations: For the six months ended June 30, 2024 Segment Revenue: Revenue from external customers $ 10,880 $ 10,176 $ - $ 21,056 Reconciliation of revenue Demand response revenue (a) - 1,168 22,224 Less: Segment cost of revenue Utility costs 2,699 2,720 - 5,419 Wages, benefits, and employee related costs 381 927 - 1,308 Facilities and Equipment costs 511 622 - 1,133 Cost of revenue- depreciation 2,152 877 - 3,029 Other cost of revenue* 304 309 - 613 Total segment cost of revenue 6,047 5,455 - 11,502 General and administrative expenses 107 153 58 318 Impairment on fixed assets 130 - - 130 Segment operating income (loss) $ 4,596 $ 4,568 $ (58 ) $ 9,106 Expand (a) Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss. * Other cost of revenue includes insurance, outside service costs and margins, and general costs. Expand The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes: (a) Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss (b) The reconciling general and administrative expense, exclusive of depreciation and amortization represent corporate and unallocated general and administrative expenses for the six months ended June 30, 2025 and 2024. Expand Gross Profit Breakout: The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the three months ended June 30, 2025: The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the three months ended June 30, 2024: The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the six months ended June 30, 2025: The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the six months ended June 30, 2024: EBITDA and Adjusted EBITDA Tables: Reconciliations of EBITDA and Adjusted EBITDA to net loss, the most comparable GAAP financial metric, for historical periods are presented in the table below: The following table represents the Adjusted EBITDA activity between each three-month period from January 1, 2025 through June 30, 2025. The following table represents the Adjusted EBITDA activity between each three-month period from January 1, 2024 through December 31, 2024.
Gizmodo
33 minutes ago
- Gizmodo
New Bitcoin Purchases by the U.S. Government Still on the Table, Bessent Says
Bitcoin recently hit an all-time high of $124,400 and is up 93% from over a year ago. But fans of the cryptocurrency think it can go even higher, and those folks experienced a rollercoaster of emotions on Thursday after Scott Bessent gave conflicting signals about what the U.S. government had planned for the world's most popular cryptocurrency. Initially, Bessent disappointed Bitcoin fans Thursday morning when he said the U.S. government's so-called strategic Bitcoin reserve, first announced by President Donald Trump in March, would not be stocked with newly purchased Bitcoin anytime soon. But the Treasury Secretary seemed to reverse course later in the day, sending mixed signals to crypto folks who know that it'll really help juice the price if the Trump regime buys a boat-load of digital money for no good reason. Bessent was asked about gold during an interview on Fox Business with Maria Bartiromo, and pivoted into talking about Bitcoin, which the White House has argued is important for the future. 'We've also started, to get into the 21st century, a Bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up. We're going to stop selling that,' Bessent said. The Treasury Secretary said that he believed the government's bitcoin holdings were somewhere between $15 billion and $20 billion, lower than previous estimates of $23 billion, as the crypto news outlet Protos notes. Why would any of this matter to crypto watchers? Because many were disappointed back in March when it turned out that rumors about a 'strategic reserve' of crypto meant that the U.S. government wouldn't be actually buying new Bitcoin. The U.S. Department of Justice often seizes crypto during criminal prosecutions, and rather than sell that crypto as it typically does, the Trump regime proposed holding onto it as a 'reserve.' Bessent's comments on Thursday morning seemed to confirm there were no plans to actually buy new Bitcoin, something he probably heard complaints about. Because by the afternoon, Bessent sent a tweet that seemed to contradict what he'd said on Fox Business. 'Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order,' Bessent tweeted. 'In addition, Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President's promise to make the United States the 'Bitcoin superpower of the world.'' What does 'budget-neutral pathways' mean? That's unclear. But it doesn't close the door on acquiring more Bitcoin in a way that would make the price rise, which is the only thing Bitcoin holders care about. Holding Bitcoin in a 'reserve' serves no purpose beyond making it more scarce, thus helping drive up the price. But the dream for crypto folks is for the U.S. government to inject real U.S. dollars into Bitcoin, artificially inflating the price even more and pushing a kind of free money into the crypto liquidity pool. Because none of this works without real dollars. When those dry up, you're left with little more than digital hopes and dreams. The U.S. dollar is literally backed by the U.S. military. Bitcoin? It's backed by your faith in its price to keep going up forever.
