May 16, 2025

Soluna Reports Q1’25 Results

Q1 Revenue of $5.9 Million and 220MW of New Projects in Development 

ALBANY, NY, May 16, 2025 – 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.
  • 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.
  • 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 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

Q1 2024 Revenue & Cost of Revenue by Project Site

For more details on the HPE contract termination, see the 8-K filing dated March 28, 2025. The audited financial statements and Annual Report on Form 10-K filed with the SEC on March 31, 2025 are available 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 solunacomputing.com and follow us on: 

LinkedIn: https://www.linkedin.com/company/solunaholdings/

X (formerly Twitter): x.com/solunaholdings

YouTube: youtube.com/c/solunacomputing

Newsletter: bit.ly/solunasubscribe

Resource Center: solunacomputing.com/resources

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. 

Contact Information

John Tunison

Chief Financial Officer

Soluna Holdings, Inc.

jtunison@soluna.io

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

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

Soluna Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

 

  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

 

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

 

For the three months ended March 31, 2025

  Cryptocurrency Mining   Data Center Hosting   High-Performance Computing Services   Total
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

 

For the three months ended March 31, 2024

    Cryptocurrency Mining   Data Center Hosting   High-Performance Computing Services   Total
Segment Revenue: Revenue from external customers   $ 6,396   $ 5,278   $ –   $ 11,674
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

 

(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.

 

The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes: 

    For the three months ended March 31,
    2025   2024
Segment operating income   $ 338   $ 5,703
             
Reconciling Items:            
Elimination of intercompany costs     65     162
Other revenue (a)     507     875
General and administrative, exclusive of depreciation and amortization (b)     (5,683)     (3,930)
General and administrative, depreciation and amortization     (2,404)     (2,403)
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
Net loss before taxes   $ (7,779)   $ (3,092)

 

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  

 

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

 

Reconciliations of EBITDA and Adjusted EBITDA to net loss, the most comparable GAAP financial metric, for historical periods are presented in the table below:

(Dollars in thousands) Three months ended

March 31,
  2025   2024
       
Net loss from continuing operations $ (7,354)   $ (2,544)
Interest expense   838     424
Income tax benefit   (425)     (548)
Depreciation and amortization   3,879     3,926
EBITDA   (3,062)     1,258
           
Adjustments: Non-cash items          
           
Stock-based compensation costs   1,847     661
Loss on sale of fixed assets   –     1
(Gain) loss on debt extinguishment and revaluation, net   (551)     3,097
Fair value adjustment on SEPA draws   118     –
Impairment on fixed assets   –     130
Adjusted EBITDA $ (1,648)   $ 5,147

 

The following table represents the EBITDA and Adjusted EBITDA activity between each three-month period from January 1, 2024 through March 31, 2025 (unaudited).

(Dollars in thousands)   Three months ended

March 31,

2024

   Three months ended

June 30,

2024

   Three months ended

September 30,

2024

   Three months ended

December 31,

2024

   Three months ended March 31, 2025
                     
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)

 

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