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Soluna Reports Q2'25 Results
BUSINESS WIRE)--Soluna Holdings, Inc. ('Soluna' or the 'Company') (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the second quarter ended June 30, 2025. 'Second quarter results demonstrate continued Adjusted EBITDA improvement and margin strength in our operating sites. In Q2, we also welcomed our first customers into Project Dorothy 2, the expansion of our first major site in Texas. We rebuilt our capital raising toolkit, secured our first at-the-market offering issuance, and prepared for a successful equity offering in July. We expanded our partnership with Spring Lane Capital to help launch our next flagship data center, Project Kati. We are now focused on scale,' said John Belizaire, CEO of Soluna Holdings. 'We are pleased to report the fourth quarter in a row of Adjusted EBITDA growth, improving by 25.5% ($0.4M) in Q2 over the prior quarter amidst market softness in Hashprice, while maintaining a steady 19% gross margin,' said John Tunison, CFO of Soluna. Q2 2025 Operational and Corporate Highlights: Project Kati Land Secured and Subsequently Closed $20M to Launch 35 MW Kati 1 – Soluna has secured land and $20M in funding from Spring Lane Capital to begin construction on Kati 1, the first 35 MW phase of our 166 MW wind-powered data center. Construction is expected to begin in Q3, with initial energization targeted for early 2026. Expanded Hosting Deployments with Key Customers – Increased deployments of existing partners Blockware, Compass Mining, and other Top-tier Miners, as Dorothy 1 space became available and Dorothy 2 came online, deepening relationships with some of the industry's most established miners. Project Dorothy 2 Construction On Track – All three building phases progressing on schedule, with full energization anticipated in Q4. 295 MW of New Projects Launched in Q2, Including Our First Solar-Powered Data Center – Including wind-powered Projects Hedy and Ellen, and solar-powered Project Annie. We believe these additions mark a major step in scaling Renewable Computing and diversifying our energy mix across Texas. Increased Power Pipeline to 2.8 GW of Long-Term Capacity – With 2.8 GW of long-term clean energy capacity in our pipeline, Soluna anticipates that it will be positioned to meet the rising demand for sustainable computing infrastructure at scale. Second Quarter Finance and Operations Highlights: Net loss for the three months declined Q2 2024 to Q2 2025 by ($1.4 million) – driven by the above-mentioned Revenue, Gross Profit and SG&A drivers with a $2.9 million increase in Operating Loss, increased by $1.3 million combined higher Interest, Tax and Other Expenses which include consent fees to Preferred B holder and Kati wind farm loss generation fee offset by the prior year loss on convertible debt and warrant revaluation for $5.6 million. Adjusted EBITDA improved $0.4 million from Q1 2025 to Q2 2025, primarily driven by a steady 19% gross margin, controlling expenses, and no significant interconnection outages. This resilient progress was despite headwinds from average Hashprice declining by 5% to $51, dampening profit sharing. Adjusted EBITDA declined ($3.0 million) from Q2 2024 to Q2 2025, driven primarily by Bitcoin halving in April 2024 and Hashprice volatility ($0.6M) from fewer machines online and efficiency at Dorothy 1B. Professional fees were higher ($0.2M), including legal costs related to the Standby Equity Purchase Agreement and compliance costs. In connection with our successful ATM raise and related fundraising, we incurred ($255) thousand of consent fees paid to the Series B Preferred stockholder. As part of securing land for Project Kati, we incurred ($291) thousand fees for lost power generation on the wind farm. Gross profit for our operating sites in Soluna Digital remained steady compared to the prior quarter Q1 2025, Q2 2025 reported strong cost discipline and gross margin stability, despite a ($0.3M) decline in Demand Response Service gross profit from exiting the seasonally higher winter pricing period. Revenue for Q2 2025 is $6.2 million, a Net Decline of $3.5 million for the three months Year-over-year. Four factors drove the decrease. Bitcoin halving and subsequent Hashprice volatility ($2.0 million), the change in commercial model mix to more Profit Sharing (fully offset by decline in cost of revenue by ($0.8 million) for no Gross Profit impact), lower Prop Mining volume related to site availability and miner efficiency ($0.6 million), and lower Demand Response Services driven by increased participation rate within ERCOT ($0.1 million). Revenue Generation Poised for Growth – We expect Revenue to stabilize and grow as we continue to commission additional MW of Bitcoin Hosting capacity over the next two years, related to Dorothy 2 and Kati 1, as illustrated in the recently published 2025 Earnings Power Presentation. Robust Cash Reserves – Quarter-end unrestricted cash was $9.9 million, a $2.0 million rise since December 31, 2024. General and administrative expenses were flat year-over-year and improved from the prior quarter. Strong cost discipline has enabled these costs to be contained even as site development continues to grow substantially. 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.
Business Wire
08-08-2025
- Business
- Business Wire
Soluna Holdings Announces CFO Transition
ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. ('Soluna' or the 'Company'), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, today announced that it has accepted the resignation of its Chief Financial Officer and Treasurer, John Tunison, effective August 21st. Tunison is departing from his role at Soluna to accept a similar position with a privately held company. 'John Tunison has supported the company through several milestones and challenges over his tenure with Soluna,' said John Belizaire, CEO of Soluna. 'He has been a partner to our team and laid the foundation for our next phase of growth. We wish him the best of luck on his next adventure.' During his tenure, Tunison played a key role in: Overseeing key financing rounds totaling over $90 million of project and company debt and equity Reaching agreements with convertible noteholders Amending terms with Series B Preferred Stockholders Completing the final conversion and payoff of outstanding convertible notes Driving 80.5% revenue growth in 2024, reaching $38 million David Michaels, a longtime board member filling various roles at the Company over his tenure, including Chairman of the Board, Lead Independent Director, and Chairman of the Audit Committee, has assumed the role of Interim CFO and Treasurer. Michaels previously served as interim CFO of the Company in 2023 and brings more than 30 years of financial leadership experience, including senior roles at Albany International Corp. (NYSE: AIN), the American Institute for Economic Research, and Starfire Systems, Inc. Tunison's resignation is not the result of any dispute or disagreement with the Company, including any matters relating to the Company's practices, policies, accounting practices, or financial reporting. 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, statements of Soluna's plans and objectives. Soluna may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ('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. 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.
Business Wire
16-05-2025
- Business
- Business Wire
Soluna Reports Q1'25 Results
ALBANY, N.Y.--(BUSINESS WIRE)--Soluna Holdings, Inc. ('Soluna' or the 'Company') (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the quarter year ended March 31, 2025. 'Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy. First quarter results reflect operational stamina amidst challenges from market headwinds, commercial model shifts, weather events, and customer deployment delays,' said John Belizaire, CEO of Soluna. 'During the first quarter of 2025, we continued construction of Project Dorothy 2, which is expected to increase our Bitcoin Hosting capacity to 123MW. We also expanded our project pipeline in South Texas to meet future demand for sustainable AI compute and Bitcoin Hosting. We believe these milestones continue to demonstrate our growth potential.' 'We are focused on the growth of our substantial pipeline of projects into AI/HPC data centers during 2025, beginning with Project Kati,' said John Tunison, CFO of Soluna. 'Additionally, in recent months, we have made substantial progress towards simplifying our capital structure, including fully converting the outstanding convertible loan notes in Q4 2024, paying off the Navitas loan at Project Dorothy 1B and securing modifications to the terms of our Series B Preferred Stock, all of which we believe has strengthened our ability to raise the growth capital needed to execute on our strategic plan,' continued John Tunison. 2025 Operational and Corporate Highlights: We simplified our capital structure by fully converting Convertible Loan Notes last year, significantly restructuring the Preferred B equity, and paying off the Navitas loan at Project Dorothy 1B. We have continued construction of Project Dorothy 2, and the initial phase of powering up that facility is underway, which is expected to increase our Bitcoin hosting capacity by 64%, reaching a total of 123 MW (with an expected completion timeline of Q4 2025). Soluna AL CloudCo LLC ('CloudCo' or 'Project Ada') completed a strategic termination of the HP Enterprises ('HPE') contract – the strategic termination of the contract has enabled the Company to refocus on crypto-mining and the future development of AI data centers. Following CloudCo's notice of termination, HPE terminated the services in April of 2025. The financial impact of the termination on Soluna's consolidated financial statements as of and for the year ended December 31, 2024, was reported in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC') on March 31, 2025. Non-dilutive Financing Closed with Galaxy – Soluna SW LLC closed a $5 million debt facility with Galaxy Digital, secured by the assets of Project Sophie. Expanded Project Pipeline up to approximately 698MW in operations, construction, and development – as of today, the Company added two new projects (Hedy and Ellen) totaling 220MW. Project Kati (166MW) is now shovel-ready with capital formation underway. Project Rosa (187MW) land acquisition agreements were signed in February 2025. We now have a line of sight to 698MW of data center capacity (for AI and Bitcoin) to be in development over the next twenty-four months. Second Patent Awarded – Soluna's second utility patent was awarded (Patent #: US12250794B2) in April 2025, which broadens the scope of Soluna's Modular Data Center patent (Patent #: US11974415B2), focusing on the layout of modular data center buildings on a site. First Quarter Financial and Operational Highlights: Short term Revenue Decline – Revenue declined when compared to same period in 2024, due to four factors: 1) BTC halving and subsequent hash price volatility, 2) change in commercial model mix to more Profit Sharing (fully offset in cost of revenue for no Gross Profit impact; one-time impact), 3) data center downtime related to weather and customer change out, partially offset by strong operational performance, and 4) lower Demand Response Services driven by increased participation rate within ERCOT. Revenue Generation Poised for Growth – Given the one-time nature of the commercial model mix shift and data center downtime, and timing of the next BTC halving, we expect Revenue to stabilize and grow as we continue to commission additional MW of Bitcoin Hosting capacity over the next 2 years related to Dorothy 2 and Kati. Strong Cash Balance Continues – Unrestricted cash grew to $9.2 million, a $1.4 million increase, from December 31, 2024. Gross Profit Declined – excluding Project Ada / CloudCo, driven by the above-mentioned Revenue drivers and partially offset by lower cost of revenue related to the shift to more Profit Share contracts, gross profit declined by $5.7 million from Q1 2024 to $1.2 million. Selling, General & Administrative Expenses, excluding depreciation and amortization – increased by $2.0 million from Q1 2024 to Q1 2025 driven by higher Stock Compensation Expense and Professional Fees related to the Yorkville Advisors Standby Equity Purchase Agreement and compliance. Net Income declined Q1 2024 to Q1 2025 by ($4.8 million) – driven by the above-mentioned Revenue, Gross Profit and SG&A drivers of a decline of $7.6 million Operating Loss, plus the Extinguishment of Convertible Loan debt and gain – +$3.6 million – on the acquisition of Cloud Notes, which was partially offset by $0.8 million combined higher Interest, Tax and Other Expenses. Adjusted EBITDA Declined Q1 2024 to Q1 2025 – driven by the above-mentioned Revenue, Gross Profit, and SG&A drivers, Adjusted EBITDA declined by $6.8 million to a loss of $1.6 million. Adjusted EBITDA Improved Q4 2024 to Q1 2025 – $0.9 million improved over Q4 2024, primarily driven by the termination of Project Ada/CloudCo HPE contract and associated mitigation of expense, and also the above-mentioned hash price and outage drivers. Q1 2025 Revenue & Cost of Revenue by Project Site Digital Cloud Total Cryptocurrency mining revenue $ 2,999 $ - $ - $ - $ 2,999 $ - $ 2,999 Data hosting revenue - 1,371 1,031 - 2,402 - 2,402 High-performance computing service revenue - - - 507 507 - 507 Demand response services - - - - - 28 28 Total revenue 2,999 1,371 1,031 507 0 5,908 28 5,936 Cost of cryptocurrency mining, exclusive of depreciation $ 1,954 $ - $ - $ - $ 1,954 $ - $ 1,954 Cost of data hosting revenue, exclusive of depreciation - 885 372 70 1,327 - 1,327 Cost of high-performance computing service revenue - - - - - 7 7 Cost of cryptocurrency mining revenue- depreciation 1,074 - - - 1,074 - 1,074 Cost of revenue- depreciation - 295 106 - 401 - 401 Total cost of revenue $ 3,028 $ 1,180 $ 478 $ 70 $ 4,756 $ 7 $ 4,763 Gross Profit $ (29 ) $ 191 $ 553 $ 437 $ 1,152 $ 21 $ 1,173 Expand Q1 2024 Revenue & Cost of Revenue by Project Site Digital Cloud Total (Dollars in thousands) Project Dorothy 1B Project Dorothy 1A Project Sophie Other Digital Subtotal Project Ada Cryptocurrency mining revenue $ 6,396 $ - $ - $ - $ 6,396 $ - $ 6,396 Data hosting revenue - 3,542 1,736 - 5,278 - 5,278 High-performance computing service revenue - - - - - - - Demand response services - - - 875 875 - 875 Total revenue 6,396 3,542 1,736 875 0 12,549 - 12,549 Cost of cryptocurrency mining, exclusive of depreciation $ 1,841 $ - $ - $ - $ 1,841 $ - $ 1,841 Cost of data hosting revenue, exclusive of depreciation - 1,737 514 - 2,251 - 2,251 Cost of high-performance computing services - - - - - - - Cost of revenue- depreciation 1,084 284 150 5 1,523 - 1,523 Total cost of revenue $ 2,925 $ 2,021 $ 664 $ 5 $ 5,615 $ - $ 5,615 Gross Profit $ 3,471 $ 1,521 $ 1,072 $ 870 $ 6,934 $ - $ 6,934 Expand For more details on the HPE contract termination, see the 8-K filing online. 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 Project Dorothy 2, our expectations with respect to the development of Projects Hedy and Ellen, and the completion of the land purchase for Project Rosa, (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 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, loss on sale of fixed assets, loss on debt extinguishment and revaluation, placement agent release expense, loss on contract, provision for credit losses, convertible note inducement expense and 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 principle. 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 March 31, 2025 (Unaudited) and December 31, 2024 (Dollars in thousands, except per share) March 31, 2025 December 31, 2024 Assets Current Assets: Cash $ 9,161 $ 7,843 Restricted cash 2,227 1,150 Accounts receivable, net (allowance for expected credit losses of $244 at March 31, 2025 and December 31, 2024) 2,364 2,693 Prepaid expenses and other current assets 1,978 1,781 Equipment held for sale 28 28 Total Current Assets 15,758 13,495 Restricted cash, noncurrent 3,060 1,460 Other assets 1,124 2,724 Deposits and credits on equipment 4,932 5,145 Property, plant and equipment, net 49,585 47,283 Intangible assets, net 15,292 17,620 Operating lease right-of-use assets 298 313 Total Assets $ 90,049 $ 88,040 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 3,321 $ 2,840 Accrued liabilities 6,482 6,785 Accrued interest payable 2,674 2,275 Contract liability 19,348 20,015 Current portion of debt 13,848 14,444 Income tax payable 49 37 Customer deposits 1,776 1,416 Operating lease liability 62 61 Total Current Liabilities 47,560 47,873 Other liabilities 249 235 Long-term debt 10,190 7,061 Operating lease liability 236 252 Deferred tax liability, net 4,821 5,257 Total Liabilities 63,056 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 March 31, 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 March 31, 2025 and December 31, 2024 — — Common stock, par value $0.001 per share, authorized 75,000,000;12,548,786 shares issued and 12,508,045 shares outstanding as of March 31, 2025 and 10,647,761 shares issued and 10,607,020 shares outstanding as of December 31, 2024 13 11 Additional paid-in capital 319,575 315,607 Accumulated deficit (321,860 ) (314,304 ) Common stock in treasury, at cost, 40,741 shares at March 31, 2025 and December 31, 2024 (13,798 ) (13,798 ) Total Soluna Holdings, Inc. Stockholders' (Deficit) Equity (16,065 ) (12,479 ) Non-Controlling Interest 43,058 39,841 Total Stockholders' Equity 26,993 27,362 Total Liabilities and Stockholders' Equity $ 90,049 $ 88,040 Expand The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. For the three months ended March 31, (Dollars in thousands, except per share) 2025 2024 Cryptocurrency mining revenue $ 2,999 $ 6,396 Data hosting revenue 2,402 5,278 Demand response service revenue 507 875 High-performance computing service revenue 28 - Total revenue 5,936 12,549 Operating costs: Cost of cryptocurrency mining revenue, exclusive of depreciation 1,954 1,841 Cost of data hosting revenue, exclusive of depreciation 1,327 2,251 Cost of high-performance computing services 7 - Cost of cryptocurrency mining revenue- depreciation 1,074 1,087 Cost of data hosting revenue- depreciation 401 436 Total cost of revenue 4,763 5,615 Operating expenses: General and administrative expenses, exclusive of depreciation and amortization 5,946 3,994 Depreciation and amortization associated with general and administrative expenses 2,404 2,403 Total general and administrative expenses 8,350 6,397 Impairment on fixed assets - 130 Operating (loss) income (7,177 ) 407 Interest expense (838 ) (424 ) Gain (loss) on debt extinguishment and revaluation, net 551 (3,097 ) Loss on sale of fixed assets - (1 ) Other (expense) income, net (315 ) 23 Loss before income taxes (7,779 ) (3,092 ) Income tax benefit, net 425 548 Net loss (7,354 ) (2,544 ) (Less) Net income attributable to non-controlling interest, net (202 ) (2,710 ) Net loss attributable to Soluna Holdings, Inc. $ (7,556 ) $ (5,254 ) Basic and Diluted loss per common share: Basic & Diluted loss per share $ (0.88 ) $ (2.62 ) Weighted average shares outstanding (Basic and Diluted) 11,939,983 2,807,555 Expand Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, 2025 and 2024 Three Months Ended March 31, (Dollars in thousands) 2025 2024 Operating Activities Net loss $ (7,354 ) $ (2,544 ) Adjustments to reconcile net loss to net cash provided by (used in) by operating activities: Depreciation expense 1,506 1,554 Amortization expense 2,373 2,372 Stock-based compensation 1,847 661 Deferred income taxes (437 ) (548 ) Impairment on fixed assets - 130 Amortization of operating lease asset 15 61 (Gain) loss on debt extinguishment and revaluation, net (551 ) 3,097 Amortization on deferred financing costs and discount on notes 153 7 SEPA fair value revaluation 118 - Loss on sale of fixed assets - 1 Changes in operating assets and liabilities: Accounts receivable 329 (1,480 ) Prepaid expenses and other current assets (197 ) (138 ) Other long-term assets 1,606 1 Accounts payable 481 430 Contract liability (667 ) - Operating lease liabilities (15 ) (61 ) Other liabilities and customer deposits 374 (192 ) Accrued liabilities and interest payable 242 499 Net cash (used in) provided by operating activities (177 ) 3,850 Investing Activities Purchases of property, plant, and equipment (3,808 ) (524 ) Purchases of intangible assets (45 ) (38 ) Proceeds from disposal on property, plant, and equipment - 78 Deposits of equipment, net 213 (343 ) Net cash used in investing activities (3,640 ) (827 ) Financing Activities Proceeds from common stock warrant exercises - 300 Proceeds from SEPA 2,005 - Proceeds from notes 5,000 - Payments on notes and deferred financing costs (1,978 ) (616 ) Contributions from non-controlling interest 4,310 - Distributions to non-controlling interest (1,525 ) (1,680 ) Net cash provided by (used in) financing activities 7,812 (1,996 ) Increase in cash & restricted cash 3,995 1,027 Cash & restricted cash – beginning of period 10,453 10,367 Cash & restricted cash – end of period $ 14,448 $ 11,394 Supplemental Disclosure of Cash Flow Information Interest paid on NYDIG loans - 115 Interest paid on Navitas loan 3 57 Interest paid on June and July SPA notes 282 - Warrant consideration in relation to convertible notes and revaluation - 4,333 Notes converted to common stock - 1,023 Noncash deferred financing cost accrual 97 - Noncash membership distribution accrual 949 1,069 Expand For the three months ended March 31, 2025 Segment Revenue: Revenue from external customers $ 2,999 $ 2,402 $ 28 $ 5,429 Reconciliation of revenue Demand response revenue (a) 507 Total consolidated revenue 5,936 Less: Segment cost of revenue Utility costs 1,412 389 - 1,801 Wages, benefits, and employee related costs 219 470 7 696 Facilities and Equipment costs 207 365 - 572 Cost of revenue- depreciation 1,074 401 - 1,475 Other cost of revenue* 140 144 - 284 Total segment cost of revenue 3,052 1,769 7 4,828 General and administrative expenses 14 90 159 263 Segment operating income (loss) $ (67 ) $ 543 $ (138 ) $ 338 Expand For the three months ended March 31, 2024 Reconciliation of revenue Demand response revenue (a) - 875 12,549 Less: Segment cost of revenue Utility costs 1,377 1,357 - 2,734 Wages, benefits, and employee related costs 191 460 - 651 Facilities and Equipment costs 175 299 - 474 Cost of revenue- depreciation 1,087 436 - 1,523 Other cost of revenue* 178 217 - 395 Total segment cost of revenue 3,008 2,769 - 5,777 General and administrative expenses 29 35 - 64 Impairment on fixed assets 130 - - 130 Segment operating income $ 3,229 $ 2,474 $ - $ 5,703 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: 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 March 31, 2025: Soluna Digital Soluna Cloud (Dollars in thousands) Project Dorothy 1B Project Dorothy 1A Project Sophie Other Soluna Digital Subtotal Project Ada Total Cryptocurrency mining revenue $ 2,999 $ - $ - $ - $ 2,999 $ - $ 2,999 Data hosting revenue - 1,371 1,031 - 2,402 - 2,402 Demand response services - - - 507 507 - 507 High-performance computing services - - - - - 28 28 Total revenue 2,999 1,371 1,031 507 5,908 28 5,936 Cost of cryptocurrency mining, exclusive of depreciation $ 1,954 - - - 1,954 - 1,954 Cost of data hosting revenue, exclusive of depreciation - 885 372 70 1,327 - 1,327 Cost of high-performance computing service revenue - - - - - 7 7 Cost of cryptocurrency mining revenue- depreciation 1,074 - - - 1,074 - 1,074 Cost of data hosting revenue- depreciation - 295 106 - 401 - 401 Total cost of revenue 3,028 1,180 478 70 4,756 7 4,763 Gross (loss) profit $ (29 ) $ 191 $ 553 $ 437 $ 1,152 $ 21 $ 1,173 Expand 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 March 31, 2024: Soluna Digital Soluna Cloud (Dollars in thousands) Project Dorothy 1B Project Dorothy 1A Project Sophie Other Soluna Digital Subtotal Project Ada Total Cryptocurrency mining revenue $ 6,396 $ - $ - $ - $ 6,396 $ - $ 6,396 Data hosting revenue - 3,542 1,736 - 5,278 - 5,278 Demand response services - - - 875 875 - 875 High-performance computing services - - - - - - - Total revenue 6,396 3,542 1,736 875 12,549 - 12,549 Cost of cryptocurrency mining, exclusive of depreciation $ 1,841 - - - 1,841 - 1,841 Cost of data hosting revenue, exclusive of depreciation - 1,737 514 - 2,251 - 2,251 Cost of high-performance computing service revenue - - - - - - - Cost of cryptocurrency mining revenue- depreciation 1,084 - - 3 1,087 - 1,087 Cost of data hosting revenue- depreciation - 284 150 2 436 - 436 Total cost of revenue 2,925 2,021 664 5 5,615 - 5,615 Gross profit $ 3,471 $ 1,521 $ 1,072 $ 870 $ 6,934 $ - $ 6,934 Expand 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 EBITDA and Adjusted EBITDA activity between each three-month period from January 1, 2024 through March 31, 2025 (unaudited). Net loss from continuing operations $ (2,544 ) $ (9,145 ) $ (8,093 ) $ (38,518 ) $ (7,354 ) Interest expense, net 424 449 821 833 838 Income tax benefit from continuing operations (548 ) (649 ) (547 ) (743 ) (425 ) Depreciation and amortization 3,926 3,909 3,916 3,889 3,879 EBITDA 1,258 (5,436 ) (3,903 ) (34,539 ) (3,062 ) Adjustments: Non-cash items Stock-based compensation costs 661 1,368 1,257 2,025 1,847 Loss on sale of fixed assets 1 21 - 9 - Provision for credit losses - 244 367 149 - Convertible note inducement expense - - - 388 - Placement agent release expense - - - 1,000 - Loss on contract - - - 28,593 - Impairment on fixed assets 130 - - - - Fair value adjustment on SEPA draws - - - - 118 Loss (gain) on debt extinguishment and revaluation, net 3,097 5,600 (1,203 ) (145 ) (551 ) Adjusted EBITDA $ 5,147 $ 1,797 $ (3,482 ) $ (2,520 ) $ (1,648 ) Expand
