John Belizaire, CEO, and David Michaels, interim CFO of Soluna Holdings, Inc., present Soluna’s 2025 Annual Results and Q4 Business Update. Read the full update announcement here.
Presentation Transcript
Speaker: John Belizaire, CEO
Hello and welcome to the 2025 Annual and Q4 Results and Business Update for Soluna Holdings. I’m John Belizaire, CEO of Soluna Holdings, and I’m joined today by our CFO, David Michaels. This will be David’s last 10-K and Q presentation as he heads off back to his seat on the board, and he’ll be replaced by Mike Picchi, who will be starting shortly as CFO, taking over the reins for our next quarter presentation.
As always, before we begin, I’d like to start with some legal preamble. The following content is completely qualified by the legal disclosures on the slide following this one. Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business. The content is in line with our principles of being accountable and transparent with shareholders.
We operate in a hyper-dynamic economic environment — that’s a fancy way of saying things change quickly. What we are telling you here is based on our estimates and assumptions, which are our best guess. We reserve the right to revise our point of view based on new information and changes in the business environment. Despite an uncertain, dynamic environment, we must plan and make operating and investment decisions. This presentation lays some of that out for your review. We’ll pause here for a moment for the legal disclosure and disclaimer.
Before we begin, it’s best to introduce those of you who are new to Soluna to our business model and where we fit into the world. The way to look at our company is that we are really bridging the gap between two major confluences happening in the world.
On one side, you have AI’s momentum as it drives and grows exponentially — its demand is growing. From a computing perspective, Bitcoin is also scaling and becoming a mature, enterprise and institutional-level asset, and the miners securing that network prefer scalable, well-managed, and cost-advantaged hosting partners. On the other side, you have clean energy which goes to waste due to curtailment. It is a large industry, and despite recent changes in the marketplace, many of these assets have excess power that doesn’t have sufficient load to allow them to generate revenue.
What we do is bridge these two gaps — developing co-located data centers behind the meter at renewable power generation facilities, which enables us to bypass long interconnection queues, improving power economics and accelerating time to market for next-generation data centers.
Our business strategy is to transform that clean energy into high-performance computing infrastructure. We do that in two ways. On one hand, we develop and operate Bitcoin hosting data centers where large, hyperscale, and creditworthy customers can place their equipment to be hosted by our best-in-class team at our best-in-class facilities, taking advantage of top-tier power costs that enable them to ride the economic swings in the Bitcoin market. The second prong is AI. This year we entered a whole new push with a definitive focus on AI — developing AI-centric projects, forming joint ventures with data center operators, and delivering those facilities to creditworthy tenants, hyperscalers, and neo-clouds to support the next generation of intelligence.
This is all powered by an ever-growing pipeline. We now have over 4.3 GW — more than a 54% increase from last year — where we signed PPAs and acquired land co-located with renewable energy projects with high curtailment, which feeds this entire business strategy. We call this strategy Renewable Computing, driving our mission to make renewable energy a global superpower using computing as a catalyst.
Last year was a banner year for Soluna. I’d like to take you through the operational highlights for 2025. Last year I wrote a letter to you, our shareholders, outlining four key focus areas for our team.
The first was growing our pipeline. We were focused on increasing the number of curtailment assessments completed with our partners, advancing projects to shovel-ready status, and executing additional project term sheets, which allows us to grow the number of projects that can feed our strategy.
We focused on optimizing our projects — completing the initiation of Project Dorothy 2, enhancing the profitability and operational efficiency and customer mix of our operating data centers, while also improving overall customer satisfaction at those facilities.
We were focused heavily on capital formation, pursuing financing opportunities to support key growth initiatives including Project Kati, which broke ground last year, as well as Rosa — leveraging several of our strengths in areas such as cash flows and refinancing some of our projects. As you’ll see, we were very successful in capital formation in that area.
And then, of course, we developed a clear, focused strategy on getting into the AI business. Our strategy was to form partnerships to harness the value of our considerable pipeline by leveraging partners that have AI and HPC data center expertise through joint ventures. We announced one at the end of the year with Metrobloks, and we are driving more expertise onto our board and into our activities in that regard.
As I said at the beginning of the presentation, last year was a banner year for Soluna. We raised over $142 million, including a $100 million credit facility with Generate Capital. We also raised capital from Galaxy Digital. We launched an upsized ATM program. We restructured the business and exited certain debt relationships. We regained our Nasdaq compliance, exited partnerships that weren’t as profitable, and grew partnerships that have been extremely profitable, like Bit Digital and Compass Mining. We exceeded 5 EH/s for the first time last year. We expanded our long-term pipeline significantly, growing it by over 50% to 4.3 GW, and monetized a considerable amount of curtailed energy.
Our project milestones were no less significant. We launched Project Dorothy 2 — we had a successful groundbreaking attended by our community partners, employees, and others, and we are very proud of that. We signed a 48 MW Galaxy Digital partnership at Kati. Dorothy 2’s 48 MW was completed. We signed a 12 MW Cormint deal, a 3.3 MW partnership with Blockware — a new type of structure in our licensing and leasing models — and several additional term sheets. Rosa, Hedy, Ellen, Annie, and Gladys combined allowed us to exceed one gigawatt of clean computing projects in development, construction, or operation.
Let’s take a look at our key operational metrics and highlights. I mentioned our hash rate is over 5.2 EH/s. We now have 123 MW in operation, and as Kati 1 starts to ramp up, as you’ll see in our future quarters, we may have a good chance of doubling that this year. Revenue for Q4 was $9.2 million, continuing an upward trend with a 17% rise quarter-over-quarter over the last several quarters. Power costs hovered around $34 per megawatt hour on average, with lots of curtailed energy consumed. Our 4.3 GW pipeline is growing, and our fleet efficiency in joules per terahash continued to stay well below 25 joules per terahash. We now have 55 strong employees helping us to continue to grow the business. And in Q4 alone, we raised over $57.5 million.
Here’s a look at our clean project pipeline. Dorothy 1A and 1B — over 50 MW in partnership with Spring Lane and Generate — are our operating projects. Sophie rounds out the fleet, and Dorothy 2, which was completed last year, brings the full operational footprint to 123 MW. Kati 1, as it ramps up, will add another 83 MW to that footprint. And Kati 2 — our new AI campus — will drive our entry into the AI business and expand our footprint. We are developing that project as we speak. The rest of the projects are all in development. As you can see, Grace, Rosa, and Hedy represent hundreds of megawatts ready to move into either Bitcoin hosting or AI. As we develop and mature those, we will announce which direction each one takes.
Now let’s look at our development pipeline. As I said earlier, our pipeline grew significantly in 2025. We now have over 4.3 GW of projects in our long-term pipeline that we’re working to develop as either Bitcoin hosting opportunities or new AI data center opportunities. Over 3.3 GW of that is in our assessed category — meaning we are working with IPPs and power partners, completing curtailment assessments, which sets us up for commercial arrangements and gets those projects into the planning process. We have over 800 MW in the planning and development process, including PPA negotiations, ERCOT planning submissions, AI feasibility studies to determine which projects are best suited for AI versus Bitcoin, and land acquisition processes. We have one project under construction — that 83 MW Kati 1 — and of course 123 MW operating. As Kati 1 ramps up, we will approach over 200 MW of operating capability. Together, that brings us to the 4.3 GW total.
Let’s look at the project highlights for Q4 2025 and beyond. Before we jump in, here are key metrics across all of our operating sites. We have 123 MW in operation — all related to Bitcoin operations — and of course Project Grace at 2 MW. Of the 123 MW, 21 MW is focused on proprietary mining at Dorothy 1B. The remaining 98 MW is hosting across a number of leading partners — all hyperscale miners, creditworthy counterparties, and long-time partners who have grown with us over time. We have deployed over 38,000 mining rigs across our sites. We had over 4.4 EH/s as of December 31st, and that number has continued to grow. Our fleet efficiency is at the 25 joules per terahash level. Uptime is 92% in operational hours, and 28 full-time roles have been created across the communities where our sites are deployed. And of course, with the Project Dorothy site now including the Briscoe Wind Farm, the amount of wind power integrated into our infrastructure will grow and increase as well.
At Project Dorothy 1A, we deployed 20 MW of Cormint and Blue Square at the site, replacing existing customers and setting up the site for new performance benchmarks. We delivered strong weather reliability, sustaining over 90% uptime through extreme cold and ERCOT demand response periods, and we completed power infrastructure upgrades for next-generation miner installations.
At Project Dorothy 1B, we streamlined the proprietary mining fleet to maximize capacity and improve utilization. We also completed hosting agreements in Q1 to support 3.3 MW of Blockware expansion in place of proprietary mining, as part of consolidation efforts at the site. We also delivered strong weather reliability and high uptime in the face of cold and extreme ERCOT demand response periods.
At Project Dorothy 2 — the newest member of the Dorothy fleet — we maintained 100% hosting capacity with existing partners including Blue Square, Compass Mining, and another major hyperscale miner. We delivered strong weather reliability, and we executed Phase 3 integration of the site, bringing it to full operation in October 2025.
Now, Project Kati 1 is our largest project to date — over 83 MW, under construction in southeast Texas. We received ERCOT approval to energize in February of this year and began commissioning. We reached substantial completion of Kati 1 Phase 1 and Phase 2 — the first 36 MW — in Q1. We completed a 48 MW hosting deployment with Galaxy Digital, one of Soluna’s largest to date. Kati 1 broke ground in the summer of 2025 and initiated commissioning toward the latter part of the year and into early 2026. It is our fastest deployment to date and our largest project to date.
Now let’s talk about Project Kati 2. This is an exciting project — an AI facility we are developing in partnership with Metrobloks to co-develop 100 MW or more of AI and HPC capacity, with a path to over 300 MW at that location. We have completed a test fit for the data center design for the latest NVIDIA GPUs, and we have attracted strong inbound interest from neo-clouds and hyperscalers, validating that the site is well-suited as an AI infrastructure destination — and further validating our behind-the-meter model integrated with renewables as a destination for next-generation computing.
And last but not least, Sophie — our first greenfield project and the platform from which everything you have seen grow over the last few years was built. We achieved a record hash rate of 1.1 EH/s following fleet expansion, setting a new performance benchmark. We added 6.6 MW through new partnerships, diversifying the customer base and expanding the site’s renewable-powered computing footprint. We also completed annual preventative maintenance and electrical infrastructure upgrades to enhance safety and help prevent future downtime.
Before we move on, I want to dig in more on the AI campus we’re building at Project Kati 2. As I mentioned earlier, it is a joint venture between Soluna and Metrobloks — a co-development joint venture combining Soluna’s renewable-powered Texas campus with Metrobloks’ scaled AI design and operations platform. We’ll start with an initial 100 MW target, growing to a full campus of over 350 MW. Because of how we are structuring power access — drawing from the wind farm and other sources, as well as the grid — we are able to keep power costs in the range of approximately $0.043 per kilowatt hour, or $43 per megawatt hour. The project is in Willacy County near McAllen, Texas — an exciting location for data centers given network connectivity, power profile, wind resources, and land availability. It uses a dual-fed power and clustering model. I’ve talked about the concept of clustering in previous presentations, and now you can see the benefits of that strategy taking shape in Kati 2.
So how do we get to a 350 MW-plus, Tier 3 AI campus? There are four key elements to the plan.
First, a two-phase, AI-optimized data center design — approximately 100 MW of critical IT load targeted for service in 2027, with at least 200 MW more anticipated in 2028. The master plan includes up to seven 50 MW data center buildings designed for high-density racks and the latest NVIDIA chips, supported by a hybrid liquid and air cooling architecture.
Second, on-site power generation. The campus power plan is expected to include at least 50 to 180 MW of gross on-site natural gas generation for primary and backup power, supplemented by diesel backup as part of the resiliency design.
Third, a renewable clustering strategy — using grid power from other wind farms in the area, starting with the Las Hadas wind facility and integrating other wind generation facilities operated by IPP partners within transmission range of the site.
And fourth, grid stabilization infrastructure. The campus design will include utility-scale battery energy storage systems to support grid stability and provide supplemental backup power.
It is a 50 MW block design — each building is 50 MW — with at least two buildings in the initial phase, growing over time to over seven blocks on a 500-plus-acre site.
I’ll now turn the presentation over to David Michaels, who will take us through the financial highlights for 2025 — both for the full year and for Q4. David.
Speaker: David Michaels, CFO
Thank you, John.
2025 was a year of transformation aimed at building a strong foundation for growth. We focused our efforts in two broad areas: our balance sheet and our revenue base. We’ll get into more detail shortly, but there is no better place to see the results of those efforts than our balance sheet. It has been transformed from weak to strong, and the turnaround has been nothing short of remarkable. We accomplished this through a combination of attracting new project-level equity and credit partners, new sources of public equity, and settling a few legacy liabilities. We also took a hard look at our revenue portfolio and made some tough decisions designed to enhance, diversify, and de-risk our revenue stack.
Bitcoin hash price declined more than 30% during the year, negatively impacting our revenue. We adapted. We invested a portion of our new capital in improving existing operations, completing Project Dorothy 2, and investing in our newest projects — Kati 1 and Kati 2.
Now let’s take a closer look at our revenue portfolio. Starting with Bitcoin mining — this is where we started, where we built the core competencies and strategies that ultimately enabled us to diversify our revenue streams, and it remains an important source of revenue for us. As the Bitcoin mining economic environment evolved, we adapted. We leveraged our core competencies and added hosting services, diversifying our revenue stream, reducing our capital requirements, and lowering our exposure to Bitcoin volatility. Those same competencies in project development, infrastructure, behind-the-meter power sourcing, and flexible load operations also uniquely positioned us for another high-margin revenue source: providing demand response and ancillary services to the grid — and ultimately, high-performance computing and AI.
Pivoting to the balance sheet. Note that the bar chart on the left represents total assets and on the right, total liabilities. Looking at total assets first — current assets jump off the page. The bulk of this change results from an increase in cash from our capital formation activities, which provided significant resources for future investments. But not all of the capital we raised was reserved for future investments. As illustrated by the next two bars, a significant share was invested in property, plant, and equipment for existing and new projects.
Total liabilities also increased, but by a much lower amount, primarily due to increases in project-level debt, offset in part by the elimination of a warrant liability.
Let’s take a look at where that capital came from. The smaller chart on the left shows the size and mix of our 2024 capital formation activities — most of which came from project-level equity partners and debt. Now look at the larger chart on the right. The size is obviously bigger and the dollars are larger, but more importantly, the mix of sources is meaningfully different. The primary source of capital raised during 2025 was from public equity investments in Soluna Holdings, Inc. This is important because it means we will be able to own more of our project equity and future cash flows.
Now what did we do with all this new capital? We invested $49 million in our active projects — bringing Dorothy 2 to full capacity and making substantial progress on Kati 1 — with smaller amounts invested in Dorothy 1A and 1B. The balance will be used for new pipeline project development and other investment opportunities.
The change in gross profit by quarter is a good measure of the impact of our revenue enhancement and diversification efforts. Look at the first two columns on this slide and note that in Q4 2024, revenue, while high, was lower than the cost of generating it — resulting in negative gross profit. This was obviously not sustainable and was a catalyst for change. We accelerated our transition to hosting, restructured our existing hosting contracts, and the results were dramatic. In Q1 2025, revenue dropped considerably, but the cost of generating that revenue fell more, and gross profit went from negative to positive. As the transition accelerated, revenue began to grow again at a 17% rate — faster than our cost of revenue — resulting in higher gross profit.
2025 Adjusted EBITDA declined overall due to a combination of higher SG&A expenses — including stock compensation, employee costs, and legal fees — and a decline in revenue, partially offset by a $6 million decline in cost of revenue, driven mainly by the absence of costs for high-performance computing services during 2025. Q3 and Q4 were also negatively impacted by financing costs associated with our equity raise and people costs associated with growth initiatives.
With this next slide, we take a deeper dive to project-level results to illustrate the impact of market forces and the changes made to our revenue and profit mix. Dorothy 1B is our proprietary mining site. Dorothy 1A, Dorothy 2, and Sophie are hosting sites. Downward pressure on revenue due to the significant decline in Bitcoin hash price continued throughout the year, resulting in a decline in total revenue from $38.0 million in 2024 to $29.7 million in 2025 — nearly 22%. The decline was mitigated in part by a $6 million reduction in cost of revenue, but still had a significant impact on gross profit.
Two key takeaways from this slide: one, despite declining hash price conditions, all projects were profitable. And two, hosting projects were more profitable than our proprietary mining projects — demonstrating the effectiveness of reduced exposure and sensitivity to Bitcoin volatility.
This last slide, a summary balance sheet, fleshes out that discussion with more detail and a year-over-year comparison. Compared to the prior year, total assets increased 213%, liabilities increased 24%, and shareholders’ equity increased 397%. And that’s not all — we finished 2025 with total assets 2.4 times greater than total liabilities, and a current ratio of 1.9 times. This is a strong balance sheet positioned for growth. Mission accomplished.
Thank you for listening to this review of Soluna’s 2025 financial highlights. For more information, I encourage you to read our press release and Form 10-K. John, back to you.
Speaker: John Belizaire, CEO
If you’d like more information on Soluna, I encourage you to download this slide and click through to our core investor presentation. Follow the links in the show notes and download the deck — there is a lot more content there. We have much more to share about the future of our business, so definitely keep in touch with us.
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Thank you.