John Belizaire, CEO, and Michael Picchi, CFO of Soluna Holdings, Inc., present Soluna’s First Quarter 2026 Results and Business Update. Read the full announcement here.
Presentation Transcript
Hello and welcome to Soluna’s review of Q1 2026 Highlights and Business Update. We look forward to talking through a two-part presentation today. I am John Belizaire, CEO of Soluna Holdings, and I’ll cover the business highlights. I’m joined today by our new CFO, Mike Picchi, who will be covering the financial highlights.
[Pausing for those legal disclosures and disclaimers.]
First, as always, let’s begin with a short company overview. Soluna is in the business of building data centers. We live at the confluence between two major technological waves taking place in the space. On the left side, AI is driving exponential growth and demand for compute, and in the Bitcoin mining space, miners prefer scalable, well-managed, and cost-advantaged hosting partners. On the right side, you have clean energy. Clean energy goes to waste due to curtailment in a number of big power markets like ERCOT in Texas. We bridge the gap between these two worlds by co-locating our data centers behind the meter at renewable power generation facilities, which enables us to bypass long interconnection queues, improve the power economics, and accelerate time to market. In essence, we’re delivering speed to market to these big markets, and at the same time addressing a major challenge for the renewable energy space: wasted energy. Wasted energy becomes the power to drive the future of computing.
So let’s look at some of the corporate highlights and metrics. We have now exceeded 7 EH/s — a record for the company as of Q1. We have over 147 MW managed by the company, up from 123 MW at the end of 2025, and we exited the quarter with $9.4 million in revenue. Our average power cost is staying within our range of $30 per megawatt hour. We continue to drive curtailed energy monetization, approaching — or more than — 49,000 megawatt hours consumed. Project equity contributed in Q1 exceeded $10.9 million. We now have 58 employees, our pipeline continues to sit at a healthy 4.3 GW, and our average fleet efficiency on the equipment in our Bitcoin mining facilities is 23 joules per terahash or under.
I want to remind you about our strategy as a company, which drives all of our implementation. Our strategy is to transform stranded clean energy — as I referenced earlier — into high-performance computing infrastructure. We are doing that in two important ways. We’re taking that 4.3 GW pipeline I referred to — where we sign PPAs and acquire land co-located with renewable energy projects; in fact, we also now acquire renewable energy projects themselves, as with the acquisition of Briscoe Wind — and monetizing that pipeline by turning those power assets into vertical data center infrastructure projects. On the Bitcoin side, we develop, own, and operate Bitcoin hosting data centers that we lease to very large hyperscale mining companies and creditworthy counterparties. On the AI side, we’re now developing AI data centers and projects around joint ventures with data center operators that will allow us to go vertical as well, building data center operations that will be leased by hyperscale or neo-cloud customers. We call this strategy Renewable Computing, and it helps position us around our mission to make renewable energy a global superpower, using computing as a catalyst.
Now let’s take a look at the business highlights for Q1 2026. Our focus this year is around four major areas.
The first, of course, is developing AI by advancing Project Kati — our data center project in Southeast Texas. We aim to get that project to shovel readiness and tenant readiness, and build a pipeline of AI-ready campuses designed for rapid deployment. Out of that 4.3 GW pipeline, through a series of joint ventures to date, we have two that we’ve announced: Kati 2 and Dorothy 3, the latter taking place as a subsequent event after the acquisition of Briscoe. So we have over 600 MW of potential projects for the AI side, and we’re making good progress there.
Second is optimizing our current projects as we energize and ramp up Kati 1 — our largest Bitcoin facility to date. That will help enhance our profitability across our operating data centers through higher uptime, operational efficiency, and disciplined cost management, thereby strengthening the long-term asset value and improving overall customer satisfaction. We continue to be sought after by leading players in the space. We have a number of customers that continue to expand their footprint with us, as you’ll see, and that gives us confidence that our execution in this area is progressing well.
Third is capital formation. We have been focused on a disciplined capital strategy to fund pipeline growth, AI data center development, and construction. We’re leveraging a combination of project-level financing and strategic capital partnerships to scale the data center development opportunities we have while maintaining balance sheet flexibility.
And fourth, of course, is our pipeline. We continue to focus on the growth of this core asset. We like to say power is the asset and compute follows — that’s the Soluna way: seek out opportunities where we can help power plant owners convert their stranded energy into revenue. We have amassed over 4.3 GW in the pipeline to date. Our goal is to convert a healthy portion — we have over 1.5 GW of projects under development — into shovel-ready status, securing behind-the-meter access to that energy through the various processes we’re involved in, and then use that to scale our capacity and accelerate speed to power.
We’ve accomplished a lot in the first three months of this year. We reported record 2025 growth: the pipeline reached 4.3 GW, we raised $142 million, and we launched our AI infrastructure plans. The development pipeline surpassed 4.3 GW through new and existing partnerships — that’s over 20 projects. We’ve partnered with Metroblocks to unlock 300 MW-plus of AI and HPC capacity at Project Kati 2. We’ve partnered with Siemens to address GPU power volatility in behind-the-meter AI deployments. We’ve expanded our partnership with Blockware, where they added 6 MW at Project Dorothy 1. We also appointed our new CFO — who is joining me on the call — effective April 1st, and we named a new auditor: KPMG is now our independent registered public accounting firm.
On the project side: Kati 1A — the Galaxy portion of the Project Kati 1 data center — all three phases, 48 MW in total, reached completion ahead of schedule. Project Kati 1B — the corporate partnership — had containers received on site, with the first 12 MW of installation underway. Kati 2, referenced a few times, secured another 500 acres of additional land, allowing us to advance into Phase One and begin the design process — which will take us to 30% schematic design — and begin the procurement of long-lead equipment, and likely begin partnerships with general contractors for the eventual construction of that site. Project Dorothy 1A also completed a 20 MW fleet upgrade, returning the site to full capacity.
As I referenced earlier, there were a couple of other key milestones just after the end of the quarter that should be noted here. The first is we acquired the 150 MW Briscoe Wind Farm, achieving full vertical integration at Project Dorothy and securing the energy foundation for Project Dorothy 3 — an AI expansion or conversion of that project. The Briscoe Wind Farm is powered by GE Vernova turbines, and we’re now in the process of upgrading those. The purchase price was approximately $53 million, which acquired all the shares of the wind farm company. As I mentioned, this allows us to expand into a 300 MW potential development for Dorothy 3, which will be on a campus not too far from the wind farm — a new 300-acre land site close to Dorothy 1 and 2. We did use some capital from our debt partner, Generate Capital, and cash from our balance sheet to finance the transaction, and we expect this acquisition to be accretive. We project somewhere around $6 to $11 million in adjusted EBITDA from this asset and $20 to $24 million in revenue on an annualized basis.
Another big update that took place right after the close of Q1 was the acquisition of Dorothy 1A, which follows a series of deliberate steps, including that vertical integration I referenced at this campus. The acquisition brings us to 100% ownership of D1A, eliminating shared equity and giving the company unilateral authority over site decisions. The ownership of D1A strengthens our ability to advance the deployment and development of Project Dorothy 3, essentially optimizing the existing site for AI applications. Dorothy is already powered and interconnected via the Briscoe Wind Farm, which Soluna now owns outright — allowing us to own all of the key elements to accelerate the conversion into this AI opportunity. The transaction provides liquidity to Spring Lane Capital’s Fund One and opens the door to new equity partners aligned with the AI infrastructure buildout.
Okay, before I turn it over to Mike Picchi, I’d like to take you through some project highlights for Q1 as well.
Starting with Dorothy 1A: we completed a 6 MW deployment for Blockware and a 14 MW deployment for Canaan with new-generation equipment. We worked through a transformer equipment failure, which impacted two data centers for a period of about 45 days. We successfully completed the ERCOT ERS period, participating in the demand response programs in the ERCOT market, and we continue to maintain an LCOE — or cost of power — of about $28 per megawatt hour for the quarter.
At Dorothy 1B: we executed a 3.3 MW expansion with Blockware and a 3 MW deployment with Saz Mining, a new customer added to our network of partners. We consolidated and optimized proprietary mining fleets in order to create capacity for these new hosting deployments at Dorothy 1B. As a reminder, Dorothy 1B was primarily proprietary mining, and we’ve been slowly shifting that to hosting. We also successfully completed the ERS program there and maintained a power cost of $28 per megawatt hour for the quarter.
Dorothy 2 — that’s the expansion of Dorothy we completed last year — maintained strong, steady operations throughout Q1 with existing customers. All customers are at full capacity at Dorothy 2. We completed the ERS program there, and our LCOE held steady at Dorothy 2 as well.
I mentioned Dorothy 3 earlier. That’s scheduled to be somewhere around 150 to 300 MW gross power envelope for this site. It’s going to be powered by the wind farm, sitting on 300 acres, and focused on AI. With full ownership of the wind farm and the Dorothy 1A footprint, we’re able to do that conversion fairly quickly. Stay tuned for more updates on this. We’ll be keeping you posted every quarter on the progress for Dorothy 3, along with Kati 2, as we develop those projects into AI data center opportunities.
Project Grace — our technology partnership with Siemens — is advancing as well. We advanced design optimization for microgrid electrical architecture, which supports AI load integration. This architecture and some of this work we’re doing will certainly benefit Dorothy 3. We partnered with Siemens to evaluate high-fidelity technical solutions for AI load integration, really with a focus on voltage ride-through performance — shielding the grid from fluctuations in power — and sub-synchronous oscillation mitigation, where frequencies can be affected by drops in load variables at the site. We are using AI — believe it or not — to model this and essentially create a digital twin of a potential data center to analyze the benefits of these specific designs.
Project Kati is one of our largest deployments to date. Kati 1, as you may recall, is an 83 MW Bitcoin hosting facility. Kati 1A — the Galaxy portion — is a 48 MW footprint. We achieved completion and transitioned to steady-state operations. Corporate containers landed, they looked fantastic — Soluna-branded — and Phase One installation has made a lot of progress. We’ve installed and done power commissioning on 23 MW of those Soluna-designed MDCs, the air-cooled solutions, as you can see in the picture. We are working on Phases Two and Three of K1B, and that continues to progress ahead of schedule. The site operations teams have been hired locally and are fully trained, so we already have people on the ground starting to ramp up that site and manage it.
Now let’s talk about Project Kati 2. This is our AI site being built just across the street from Kati 1. This is now a very large campus being contemplated that would exceed 350 MW — a critical IT Tier 3 AI campus. We announced a joint venture with Metroblocks, a group of highly capable people from hyperscalers who are helping us develop the site. We secured 500 acres of additional land to support expansion of the campus. We advanced Phase One of Kati 2 — the first ~100 MW or so — to 30% schematic design, and selected architecture and engineering firms to support that process. We also signed an LOI for long-lead gas generation equipment. Procurement of data center equipment is underway as well, and we’re also looking at some inside-the-building equipment to help accelerate this project.
So those were our Texas sites. Now let’s talk about Project Sophie. This is our site in Kentucky — one of our first greenfield sites in the corporate portfolio. We maintained strong, steady operations there in Q1 with existing customers. All customers remained at full capacity at the site. We completed a network upgrade to enhance security and increase reliability, and we also completed a host of preventative maintenance on critical electrical infrastructure at these sites.
Now, of the 4.3 GW pipeline, we have a number of projects that are either operating, under construction, or under development. I touched on all of the operating sites and one of the projects under construction — that takes us all the way to number 41 on this list. If you add up the numbers here, we’re well on our path to exceed 200 MW of assets under management. We’re currently at 147 MW and expect to exceed 200 by the middle of this year. The gray areas are the projects in development: Dorothy 3 (300-plus MW), Kati 2 (300-plus MW), Grace, Hedy, Ellen, Rosa, Annie, Fei, and Gladys — all continue to make good progress in their progression through the development process. Stay tuned for more updates on those projects. Some of them are getting closer to a determination of whether they’ll be Bitcoin hosting or AI projects, but as a rule of thumb, the larger projects will most likely be AI and the smaller projects will most likely be Bitcoin. “Smaller” is less than 100 MW; “larger” is more than 100 to 150 MW.
This is a map of our projects from that table you just saw, laid out across the great state of Texas. We have over 1.5 GW of projects in the state. The proximity of those projects — and if you were to map the entire 4.3 GW, you’d see a lot more dots here — gives us a special strategic capability that allows us to advance and grow those projects as they mature in the process. The combination of those projects into a single, large AI data center campus is an approach we call clustering. This creates opportunities for much larger campuses at our sites, and we’re starting to use that approach for the Kati 2 project, and will likely use it for other projects as well.
Okay, let’s take a look at some key metrics across all of our operating sites as of the end of Q1. As I mentioned, energized capacity is 147 MW, up from 123 MW at the close of 2025. From a business perspective: 145 MW Bitcoin, 2 MW AI technology development at Grace. Of the 147 MW, 122 MW is hosting and 25 MW is proprietary — but that proprietary share is shrinking. Seven leading industry partners have partnered with us on projects. Almost 50,000 mining rigs are deployed throughout our facilities. We have an operating hash rate of over 7 EH/s. Fleet efficiency is 23 J/TH. Uptime is north of 91% — industry-leading. On the operational side, we’ve added about 11 new staff. We now have the Briscoe Wind Farm, so we have an energy asset in our portfolio. We continue to consume power through the curtailed energy category: as of Q1, 49,000 MWh consumed. And our power price is industry-leading at $30 per megawatt hour on average.
Okay, let’s take a look at some upcoming catalysts for the remainder of this year. You should expect more of Kati 2 to be energized. We’ll have some new energy partnership announcements coming up in the next quarter or so. We’ve kicked off design of Kati 2, as I mentioned earlier, and that will continue to advance and progress into activities related to construction. PPAs on projects Rosa, Hedy, Ellen, Annie, and new projects are certainly underway as well. My earlier comment about the new energy announcements was really about the Briscoe acquisition, which was in our original catalyst plan — so that one certainly hit. New Bitcoin hosting announcements will be coming up as well — stay tuned for those. Kati 2 AI announcements: we’ve been in discussions with potential lease firms at Kati 2, and as that progresses later this year, you’ll see those as well. Dorothy 3 AI announcements, as those progress, will be important. And potentially new AI-related announcements will happen this year as well.
We have a lot going on. This is probably one of the most exciting periods for the company in a long time, and we encourage you to stay tuned as we publish these important developments.
Okay, let’s talk about how we finance our projects. I’ve been getting a lot of questions — especially on the AI side — about how we’re going to finance these billion-dollar projects. As a reminder, we’ve developed a capital formation structure that allows us to take investment, both equity and debt, at both the project level and the parent level. Bitcoin stays separate from AI. Each project is a project company, which allows us to take in capital — equity and debt — from those partners. On the Bitcoin hosting side, we’ve done that over the last few years with great partners: Galaxy, Generate Capital, Spring Lane Capital, and Navitas as well. On the AI side, the goal is to use project-level joint ventures and partners to give us the expertise and capital to power these projects. So as we develop Kati 2, Dorothy 3, and some of these other projects — as they become shovel-ready and we start capital formation — you can expect us to raise capital: debt and equity at those projects, and also equity at the parent company to inject into those projects.
By way of example: let’s say we’ve got an AI project, it’s a $1 billion build, and we’re somewhere in the 70–80% debt ratio. Then $700 to $800 million would be raised at the project level, debt backed and collateralized by the data center itself. And then we would have a $200 to $300 million equity check to raise — coming from a combination of project-level and Soluna Holdings-level equity raises.
All right, that’s the business update. I’d now like to turn it over to our new CFO, Mike Picchi, to take you through the financial highlights for the quarter.
Thanks, John. Soluna does have diverse revenue streams. Our Bitcoin mining operation had $2.2 million of revenue in the first quarter of 2026 — down 28% compared to the first quarter of 2025 — reflecting hash price compression in the industry. However, our Bitcoin hosting operation had $6.7 million of revenue in Q1 2026, up 178% compared to Q1 2025. Our grid ancillary services business was flat year-over-year at roughly $500,000 in revenue, and our high-performance computing business had no revenues in the first quarter of 2026. We remain in development on the 350 MW Kati 2 site and the new 300 MW Dorothy 3 site.
Turning to the balance sheet, Soluna continues to show a strong cash position of $68.6 million, reflecting all the capital-raising efforts of fiscal year 2025. Net property, plant, and equipment increased $4.7 million, reflecting additional build-out of Kati 1. On the liability side, long-term debt decreased from scheduled principal repayments. In the equity section, noncontrolling interest increased $8.4 million, primarily from our partner Spring Lane Capital funding the K1 build-out cost.
Looking at the revenue trend over the last four quarters, Soluna has increased revenues for four consecutive quarters, notwithstanding hash price headwinds. Kati 1 will continue to ramp up as we look forward to Q2 2026. The year-over-year revenue increase of 58% for Q1 2026 compared to Q1 2025 was driven in large part by having Dorothy 2 energized in 2026 — Dorothy 2 wasn’t yet active in Q1 2025.
Gross profit dollars have also grown for four consecutive quarters. We have shifted our Bitcoin model toward more hosting rather than Bitcoin mining. Bitcoin hosting is more profitable and less volatile than Bitcoin mining. In Q1 2026, Bitcoin hosting was 71% of our total revenues, compared to 40% of total revenues in Q1 2025. This change in revenue mix benefited gross profit.
Adjusted EBITDA removes the impact of non-cash charges such as non-cash compensation expense. While adjusted EBITDA improved in Q1 2026 compared to the most recent quarter — Q4 2025 — the comparison to the year-earlier period, Q1 2025, was a decrease of $444,000, as we were working in Q1 2026 to complete the Briscoe Wind Farm acquisition and were incurring professional fees to get that done, which we did on April 1st.
Looking at revenue and gross profit by site really illustrates the impact of bringing our Bitcoin hosting site, Dorothy 2, online in the second half of 2025. Dorothy 2 was 37% of total revenue and 73% of total gross profit. As Kati 1 ramps up in Q2 2026, revenues and gross profit will increase at that location. And finally, looking back at last year, Dorothy 1A was up nicely in Q1 2026 compared to Q1 2025 — and you’ll notice there are no revenues in the prior year for Dorothy 2.
In summary, the Soluna management team is working to improve forward visibility and reduce earnings volatility from exposure to Bitcoin, while also simplifying the capital structure and improving returns. We look forward to updating you on a momentous Q2 2026. Back to you, John.
Thanks, Mike. Okay, that’s it for Q1. We look forward to telling you about the upcoming quarters. If you want to learn more or download some of this information, you can go to solunacomputing.com and visit the Investor Center — you’ll find this presentation and a host of other materials, our filings, etc., to support your continued learning on Soluna.
Again, thanks for connecting with us. If you want to stay connected on our updates and what’s happening with the company, please follow us on X — we are @SolunaHoldings. We’re also on LinkedIn: find the Soluna Holdings page, and you’ll find our stream there. And if you haven’t subscribed to our newsletter, please do — it’s bit.ly/solunasubscribe. Join thousands of folks who get regular updates and interesting content about the company to stay connected to our journey to make renewable energy a global superpower, using computing as a catalyst.