Strong Capital Formation, Expanded Operations Position Company for an Accelerated 2026 Despite Q4 Hashprice Headwinds
ALBANY, N.Y.--(BUSINESS WIRE)--March 30, 2026--
Soluna Holdings, Inc. ("Soluna Holdings" or the "Company") (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced financial results for the full year ended December 31, 2025.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260330987013/en/
Soluna Reports 2025 Gross Profit by Quarter
"2025 was a transformational year for Soluna. We doubled our operating capacity, grew our power pipeline to 4.3GW, added two new project-level capital partners, and launched our AI infrastructure initiative -- all while building a strong balance sheet to fund our next phase of growth," said John Belizaire, CEO of Soluna Holdings.
"The completion of Dorothy 2, the commissioning of Kati 1, and our co-development partnership for Kati 2 are clear proof points of our ability to execute. We enter 2026 as Soluna 2.0 with significant momentum and a platform built to scale," continued John Belizaire.
2025 Operational and Corporate Highlights:
-- Surpassed 1 GW of Renewable-Powered Computing -- With the addition of
Projects Gladys and Fei in August, Soluna crossed 1 GW of
renewable-powered computing in operation, construction, and development,
a notable milestone reflecting the scalability of its behind-the-meter
model.
-- Dorothy 2 Completed, Powered Up, and Operational -- We completed and
fully energized Project Dorothy 2 (48MW) in November 2025, enhancing the
profitability and operational efficiency of our operating data centers,
while diversifying our customer mix and improving overall customer
satisfaction. Dorothy 2 is now fully marketed and contracted.
-- Construction of Kati 1 started in the third quarter of 2025 -- In
February 2026, we received approval from ERCOT to commence the initial
energization and phased commissioning of Project Kati 1. We expect to
begin generating revenue from this 83MW facility as capacity is ramped up
throughout the first half of 2026.
-- Kati 2 AI Development Underway -- Soluna is advancing Project Kati 2 in
Texas as a planned AI and HPC data center campus. In 2025, the Company
signed an MOU with Metrobloks for an initial 100+ MW critical IT
development, with a roadmap to expand to over 300 MW.
-- Power Pipeline Grows to 4.3+ GW -- The long-term power pipeline
expanded to 4.3+ GW, driven by new curtailment assessments, active term
sheet discussions, and launches of six new development-stage projects,
positioning Soluna as a scalable infrastructure platform.
"Our 2025 financial results reflect the significant investment we made in building the foundation for long-term growth. We raised approximately $142 million in capital, grew our total cash position by 750% to $88.8 million, and added two new project-level financing partners," said David Michaels, interim CFO of Soluna Holdings.
"While Bitcoin headwinds negatively impacted revenue, our balance sheet strengthened. Our current ratio improved to 1.9x, and we are well-capitalized to execute on our pipeline development and AI infrastructure initiatives heading into 2026," continued David Michaels.
Fourth Quarter 2025 Financial Results
-- Revenue in Q4 2025 grew sequentially from Q3 -- it grew by 9% from $8.4
million to $9.2 million on volume growth from operational expansion,
offset by headwinds on lower hashprice.
-- Q4 2025 gross profit decreased sequentially from $2.3 million to $1.8
million -- driven by a softening of hashprice due to the challenging
Bitcoin environment offset, in part, by an increase in volume from
completing Dorothy 2.
-- Stronger liquidity position in Q4 2025 -- Total cash grew $28.4 million
(47%) from $60.5 million in Q3 to $88.8 million in Q4 from equity raises,
further bolstering our reserves for future investment opportunities.
Fiscal Year 2025 Financial Results:
-- Significant Capital Formation in 2025 -- totaling $142 million from
debt issuances, SEPA draws, RDOs, and ATM transactions. We added two new
project-level financing partners: Generate Capital ($17M) and Galaxy
Digital, LLC ($5M). Spring Lane Capital ($30M) continues its support of
our data center projects. The Generate Credit Facility is Soluna's
largest and most strategically significant financing arrangement to date,
providing up to $100M of scalable, project-level capital to fund
construction across the pipeline.
-- Outstanding Unrestricted Cash Growth -- Unrestricted cash reached $76
million at the end of FY 2025. Total cash increased 750% from $10.5
million to $88.8 million. The significant cash infusion enabled us to
expand our pipeline, optimize our current Bitcoin assets, and initiate a
launch into AI.
-- PP&E growth reflects project investments -- Our net PP&E increased from
$47.3 million to $74.8 million (+58%) in 2025, echoing the current
development of our pipeline projects. For example, the energization of D2
has doubled the capacity at our Dorothy campus, and construction of Kati
1 is currently underway.
-- Revenue negatively impacted by Bitcoin hashprice -- 2025 Revenue
declined by -21.8%, to $29.7 million, compared to $38.0 million in 2024
($6 million was directly related to hash price impacting prop mining;
with $2 million indirectly related to hashprice from contract mix).
Hashprice declined 30.8% in 2025, from $54.45 at the start of the year to
$37.68 at the end.
-- 2025 Cost of Revenue, including electricity, overhead, and depreciation,
decreased by $5.4 million from $28.6 million to $23.3 million -- driven
by the termination of the HPE contract, which accounted for $5.7 million
in year-over-year savings. Power costs decreased by approximately $2
million. These savings were partially offset by an $0.8 million increase
in personnel and overhead expenses, reflecting our ongoing operational
expansion.
-- 2025 Gross Profit declined -- The $2.9 million decline in gross profit
in 2025 was primarily driven by weaker hashprice. Capacity expanded
significantly following the completion of the Dorothy 2 facility. While
gross margin dropped from 25% in 2024 to 22% in 2025, primarily due to a
softening of hashprice in late 2025, our core operations continued to
generate positive gross margins despite the hashprice environment,
resulting in gross profit of $6.5 million and maintaining positive
profitability throughout the year.
-- SG&A Spend for Growth -- SG&A increased $11.9 million year-over-year,
with spending strategically directed toward future growth. The increase
was driven by $5.2 million in stock-based compensation, $4.3 million in
people costs, $1.7 million in legal fees related to Project Kati
financing, and $0.7 million for enhancing our investor relations
engagement and business development.
FY 2025 Revenue & Cost of Revenue by Project Site
Soluna
Soluna Digital Cloud
-------------------------------------------------------- -------
Project Project Project Soluna
Dorothy Dorothy Dorothy Project Digital Project
(Dollars in thousands) 1B 1A 2 Sophie Other Subtotal Ada Total
----------------------- -------- -------- -------- -------- ------ -------- ------- -------
Cryptocurrency mining
revenue $ 11,406 -- -- -- -- $ 11,406 -- $11,406
Data hosting revenue -- 6,176 5,662 5,160 - 16,998 - 16,998
High-performance
computing services -- -- -- -- -- -- 28 28
Demand response services 561 579 145 -- -- 1,285 -- 1,285
------- ------- ------- ------- ---- ------- ------ ------
Total revenue $ 11,967 $ 6,755 $ 5,807 $ 5,160 - $ 29,689 $ 28 $29,717
Cost of cryptocurrency
mining, exclusive of
depreciation $ 7,411 -- -- -- -- $ 7,411 -- $ 7,411
Cost of data hosting
revenue, exclusive of
depreciation -- 3,064 3,852 1,629 559 9,104 -- 9,104
Cost of high-performance
computing service
revenue -- -- -- -- -- -- 7 7
Cost of cryptocurrency
mining revenue-
depreciation 4,304 -- -- -- -- 4,304 -- 4,304
Cost of data hosting
revenue- depreciation -- 1,099 864 470 -- 2,433 -- 2,433
------- ------- ------- ------- ---- ------- ------ ------
Total cost of revenue 11,715 4,163 4,716 2,099 559 23,252 7 23,259
------- ------- ------- ------- ---- ------- ------ ------
Gross profit (loss) $ 252 $ 2,592 $ 1,091 $ 3,061 $(559) $ 6,437 $ 21 $ 6,458
------- ------- ------- ------- ---- ------- ------ ------
FY 2024 Revenue & Cost of Revenue by Project Site
Soluna
Soluna Digital Cloud
------------------------------------------------------- --------
Project Project Project Soluna
Dorothy Dorothy Dorothy Project Digital Project
(Dollars in thousands) 1B 1A 2 Sophie Other Subtotal Ada Total
----------------------- -------- -------- ------- -------- ------ -------- -------- -------
Cryptocurrency mining
revenue $ 17,027 - - - - $ 17,027 - $17,027
Data hosting revenue - 13,742 - 5,096 - 18,838 - 18,838
High-performance
computing services - - - - - - 16 16
Demand response services 152 139 - - 1,849 2,140 - 2,140
------- ------- ------- ------- ----- ------- ------ ------
Total revenue $ 17,179 $ 13,881 - $ 5,096 $1,849 $ 38,005 $ 16 $38,021
Cost of cryptocurrency
mining, exclusive of
depreciation $ 7,499 - - - - $ 7,499 - $ 7,499
Cost of data hosting
revenue, exclusive of
depreciation - 7,252 - 2,059 66 9,377 - 9,377
Cost of high-performance
computing service
revenue - - - - - - 5,724 5,724
Cost of cryptocurrency
mining revenue-
depreciation 4,292 - - - - 4,292 - 4,292
Cost of data hosting
revenue- depreciation - 1,162 - 573 - 1,735 - 1,735
------- ------- ------- ------- ----- ------- ------ ------
Total cost of revenue 11,791 8,414 - 2,632 66 22,903 5,724 28,627
------- ------- ------- ------- ----- ------- ------ ------
Gross profit (loss) $ 5,388 $ 5,467 - $ 2,464 $1,783 $ 15,102 $(5,708) $ 9,394
------- ------- ------- ------- ----- ------- ------ ------
-- Revenue decreased by $8.3 million YoY -- Hashprice declined 21.5%
year-over-year, and Bitcoin mined fell sharply from 274 in 2024 to 113.2
in 2025. A 20MW client exit in December 2024 added further headwinds, as
the replacement with profit-sharing clients generated lower baseline
yields than the prior fixed-fee contracts. These impacts were partially
offset by the energization and ramp-up of Dorothy 2 throughout 2025.
-- Net loss in 2025 was $57.0 million compared to net loss in 2024 of
$58.3 million.
-- Adjusted EBITDA declined -- 2025 EBITDA decreased $14.2 million from
+$942k to -$13.2 million. The decrease was driven by a $8.3 million
year-over-year drop in revenue due to the challenging Bitcoin hashprice.
In addition, increases in SG&A expenses due to higher personnel costs,
professional/legal fees, and investor relations costs.
The audited financial statements and 10K are available online. A narrative overview of our 2025 highlights is available on our website.
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 and commissioning of Project Kati 1 and Project Kati 2, our expectations regarding the timing and amount of revenue generation from these projects, the expected amount of renewable energy capacity Projects Kati 1 and Kati 2 will deliver, the development and growth of our AI data center business, and our business strategy with respect to Bitcoin mining and AI infrastructure, (ii) statements of future economic performance, and (iii) statements of assumptions underlying other statements about the Company or its business. Soluna Holdings 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. 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 Holdings 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 Holdings from time to time presents alternative non-GAAP performance measures, e.g., EBITDA and Adjusted EBITDA. 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 and credit on equipment deposit, loss on debt extinguishment and revaluation, fair value adjustment losses, placement agent release expense, fair value on placement agent warrant, loss on contract, provision for credit losses, convertible note inducement expense and impairment on fixed assets. Management believes EBITDA and Adjusted EBITDA are useful to investors because they provide a supplemental measure of operating performance that excludes non-cash charges and items that are not indicative of the Company's core recurring operations, facilitating period-over-period comparisons. EBITDA and Adjusted EBITDA are provided in addition to and should not be considered to be substitutes for, or superior to net income, the comparable measure calculated in accordance with GAAP. Further, EBITDA and Adjusted EBITDA should not be considered as alternatives to revenue growth, net income, or any other performance measure calculated in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. 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, 2025, 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((TM)) 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.
Soluna Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025, and December 31, 2024
(Dollars in thousands, except
per share) December 31, 2025 December 31, 2024
------------------- ---------------------
Assets
Current Assets:
Cash $ 76,423 $ 7,843
Restricted cash 4,500 1,150
Accounts receivable, net
(allowance for expected
credit losses $244 as of
December 31, 2025 and
December 31, 2024) 5,522 2,693
Loan commitment assets 3,018 --
Prepaid expenses and other
current assets 2,664 1,781
Equipment held for sale -- 28
-------------- --------------
Total Current Assets 92,127 13,495
Restricted cash, noncurrent 7,920 1,460
Other assets 978 2,724
Deposits and credits on
equipment 1,377 5,145
Property, plant and equipment,
net 74,783 47,283
Intangible assets, net 8,261 17,620
Operating lease right-of-use
assets 252 313
Financing lease right-of-use
assets 2,246 --
-------------- --------------
Total Assets $ 187,944 $ 88,040
-------------- --------------
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable $ 4,859 $ 2,840
Accrued liabilities 13,182 6,785
Accrued interest 303 2,275
Contract liability 19,348 20,015
Current portion of debt 8,858 14,444
Income tax payable 123 37
Customer deposits-current 1,913 1,416
Deferred revenue 518 --
Operating lease liability 65 61
Financing lease liability 20 --
-------------- --------------
Total Current
Liabilities 49,189 47,873
Other liabilities 743 235
Customer deposits- long-term 2,533 -
Long-term debt 17,899 7,061
Operating lease liability 187 252
Financing lease liability 2,236 --
Deferred tax liability, net 2,911 5,257
-------------- --------------
Total Liabilities 75,698 60,678
-------------- --------------
Commitments and Contingencies
(Note 13)
Mezzanine equity:
Placement agent warrants 1,313 --
Stockholders' Equity:
9.00% Series A Cumulative
Perpetual Preferred Stock,
par value $0.001 per
share, $25.00 liquidation
preference; authorized
6,040,000; 4,928,545 and
4,953,545 shares issued
and outstanding as of
December 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 December
31, 2025 and December 31,
2024 -- --
Common stock, par value
$0.001 per share,
authorized 375,000,000;
102,617,684 shares issued
and 102,531,089 shares
outstanding as of December
31, 2025 and 10,647,761
shares issued and
10,607,020 shares
outstanding as of December
31, 2024 103 11
Additional paid-in capital 435,030 315,607
Accumulated deficit (367,715) (314,304)
Common stock in treasury,
at cost, 86,595 shares at
December 31, 2025 and
40,741 shares at December
31, 2024 (13,873) (13,798)
-------------- --------------
Total Soluna Holdings,
Inc. Stockholders'
Equity (Deficit) 53,550 (12,479)
Non-Controlling Interest 57,383 39,841
-------------- --------------
Total Stockholders'
Equity 110,933 27,362
-------------- --------------
Total Liabilities,
Mezzanine Equity, and
Stockholders' Equity $ 187,944 $ 88,040
-------------- --------------
The accompanying notes are an integral part of these consolidated financial statements.
Soluna Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
As of December 31, 2025 and December 31, 2024
Year Ended
December 31,
---------------------------
(Dollars in thousands, except per share) 2025 2024
------------ -------------
Cryptocurrency mining revenue $ 11,406 $ 17,027
Data hosting revenue 16,998 18,838
High-performance computing service
revenue 28 16
Demand response service revenue 1,285 2,140
---------- ---------
Total revenue 29,717 38,021
Operating costs:
Cost of cryptocurrency mining revenue,
exclusive of depreciation 7,411 7,499
Cost of data hosting revenue,
exclusive of depreciation 9,104 9,377
Cost of high-performance computing
services 7 5,724
Cost of cryptocurrency mining revenue-
depreciation 4,304 4,292
Cost of data hosting revenue-
depreciation 2,433 1,735
---------- ---------
Total cost of revenue 23,259 28,627
Operating expenses:
General and administrative expenses,
exclusive of depreciation and
amortization 30,519 18,581
Depreciation and amortization
associated with general and
administrative expenses 9,608 9,613
---------- ---------
Total general and administrative
expenses 40,127 28,194
Loss on contract -- 28,593
Impairment on fixed assets 12 130
---------- ---------
Operating loss (33,681) (47,523)
Interest expense (4,835) (2,527)
Gain (loss) on debt extinguishment and
revaluation, net 10,658 (1,644)
Fair value adjustment loss (23,681) (5,705)
Loss on sale of fixed assets and credit
on equipment deposit (1,151) (31)
Other financing expense (5,917) (3,661)
Other (expense) income, net (700) 304
---------- ---------
Loss before income taxes (59,307) (60,787)
Income tax benefit, net 2,316 2,487
---------- ---------
Net loss (56,991) (58,300)
(Less) Net loss (income) attributable to
non-controlling interest, net 3,580 (5,034)
---------- ---------
Net loss attributable to Soluna Holdings,
Inc. $ (53,411) $ (63,334)
---------- ---------
Basic and Diluted loss per common share:
Basic & Diluted loss per share $ (2.38) $ (14.94)
Weighted average shares outstanding
(Basic and Diluted) 29,048,848 5,109,339
The accompanying notes are an integral part of these consolidated financial statements.
Soluna Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Year Ended December 31, 2025 and 2024
(Dollars in thousands)
Year Ended December 31,
-------------------------------
(Dollars in thousands) 2025 2024
----------------- ------------
Operating Activities
Net loss $ (56,991) $ (58,300)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation expense 6,852 6,152
Amortization expense 9,493 9,488
Stock-based compensation 10,566 5,311
Deferred income taxes (2,339) (2,522)
Impairment on fixed assets 12 130
Provision for credit losses -- 760
Amortization of operating lease asset
and financing lease 189 133
Debt issuance costs -- 2,011
(Gain) loss on debt extinguishment and
revaluation, net (10,658) 1,644
Loss on contract -- 28,593
Amortization on deferred financing
costs and discount on notes 1,114 351
Fair value adjustments, including SEPA 23,680 5,705
Fair value on placement agent warrant
financing cost 146 --
Loss on sale of fixed assets and
credit on equipment deposit 1,151 31
Conversion inducement expense -- 388
Changes in operating assets and
liabilities:
Accounts receivable (2,829) (505)
Prepaid expenses and other current
assets (884) (3,296)
Other long-term assets 1,704 (4,842)
Accounts payable 2,012 741
Contract liability (667) --
Deferred revenue 1,012 --
Operating lease liabilities (61) (138)
Other liabilities and customer
deposits 3,044 (1,671)
Accrued liabilities and accrued
interest payable 4,305 4,767
--------- --------
Net cash used in operating activities (9,149) (5,069)
--------- --------
Investing Activities
Purchases of property, plant, and
equipment (28,065) (8,853)
Purchases of intangible assets (134) (101)
Proceeds from disposal on property,
plant, and equipment -- 215
Deposits of equipment (3,654) (4,424)
--------- --------
Net cash used in investing activities (31,853) (13,163)
--------- --------
Financing Activities
Proceeds from common stock warrant
exercises 10,272 2,332
Proceeds from sale of common stock on
SEPA 6,176 --
Proceeds from notes and debt issuance 23,885 14,470
Net proceeds from sale of common stock
on ATM 34,153 --
Net proceeds from July equity issuance 4,364 --
Net proceeds from December equity
issuance 29,748 --
Payments on notes (6,676) (2,675)
Payments on debt issuance costs (2,790) (899)
Payments on other financing costs -- (1,375)
Payments on warrant redemptions (452) --
Payments on financing lease
liabilities (118) --
Costs on treasury stock (75) --
Contributions from non-controlling
interest 29,559 14,735
Distributions to non-controlling
interest (8,654) (8,270)
--------- --------
Net cash provided by financing activities 119,392 18,318
--------- --------
Increase in cash & restricted cash 78,390 86
Cash & restricted cash -- beginning of
period 10,453 10,367
--------- --------
Cash & restricted cash -- end of period $ 88,843 $ 10,453
--------- --------
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for:
Interest paid on debt 1,976 527
Non-cash investing and financing
activities:
Fair value consideration for Green
Cloud issuance of shares 810 --
Noncash financing cost accrual 766 --
Noncash deferred financing cost
accrual 828 --
Warrant consideration in relation to
Generate Common Warrant 2,635 --
Warrant consideration in relation to
convertible notes, Cloud notes, and
revaluation of warrant liability -- 6,362
Notes converted to common stock -- 9,001
Noncash membership distribution
accrual 3,637 1,179
SEPA commitment payment -- 275
Placement agent release payment -- 1,000
Fair value consideration on placement
agent warrants 1,313 --
Noncash non-controlling interest
contributions 2,675 2,160
Noncash activity right-of-use assets
obtained in exchange for lease
obligations 2,303 146
The accompanying notes are an integral part of these consolidated financial statements.
Segment Information
The following table details revenue, cost of revenues, and other operating costs for the Company's reportable segments for years ended December 31, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:
For the year ended December 31, 2025
Data
Cryptocurrency Center High-Performance
Mining Hosting Computing Services Total
------------------ -------- -------------------- -------
Segment Revenue:
Revenue from
external customers $ 11,406 $ 16,998 $ 28 $28,432
Reconciliation
of revenue
Demand response
revenue (a) 1,285
------
Total consolidated
revenue 29,717
Less: Segment cost of
revenue
Utility costs 5,418 3,492 -- 8,910
Wages, benefits,
and employee
related costs 873 2,853 7 3,733
Facilities and
Equipment costs 862 2,141 -- 3,003
Cost of revenue-
depreciation 4,304 2,433 -- 6,737
Other cost of
revenue* 517 1,355 -- 1,872
------- ----- ------- --- ------ ------- ------
Total segment cost
of revenue 11,974 12,274 7 24,255
General and
administrative
expenses 62 2,035 270 2,367
Loss on contract -- -- -- --
Impairment on
fixed assets -- 12 -- 12
------- ----- ------- --- ------ ------- ------
Segment operating
(loss) income $ (630) $ 2,677 $ (249) $ 1,798
------- ---- ------- --- ------ ------ ------
For the year ended December 31, 2024
Data
Cryptocurrency Center High-Performance
Mining Hosting Computing Services Total
--------------- -------- -------------------- -----------
Segment Revenue:
Revenue from
external
customers $ 17,027 $ 18,838 $ 16 $ 35,881
Reconciliation
of revenue
Demand response
revenue (a) 2,140
-------
38,021
Less: Segment cost
of revenue
Utility costs 5,381 5,437 -- 10,818
Wages,
benefits, and
employee
related costs 849 2,087 6 2,942
Facilities and
Equipment
costs 944 1,406 5,718 8,068
Cost of
revenue-
depreciation 4,292 1,735 -- 6,027
Other cost of
revenue* 623 779 -- 1,402
-------------- ------- --- --------- ---- -------
Total segment
cost of
revenue 12,089 11,444 5,724 29,257
General and
administrative
expenses 169 1,058 410 1,637
Loss on
contract -- -- 28,593 28,593
Impairment on
fixed assets 130 -- -- 130
-------------- ------- --- --------- ---- -------
Segment
operating
income (loss) $ 4,639 $ 6,336 $ (34,711) $(23,736)
-------------- ------- --- --------- --- -------
(a) Demand 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:
Year ended December 31,
-------------------------------
2025 2024
----------------- ------------
Segment operating income (loss) $ 1,798 $ (23,736)
Reconciling Items:
Elimination of intercompany costs 996 630
Other revenue (a) 1,285 2,140
General and administrative, exclusive
of depreciation and amortization (b) (28,152) (16,944)
General and administrative,
depreciation and amortization (9,608) (9,613)
Interest expense (4,835) (2,527)
Gain (loss) on debt extinguishment and
revaluation, net 10,658 (1,644)
Loss on sale of fixed assets and
credit on equipment deposit (1,151) (31)
Fair value adjustment loss (23,681) (5705)
Other financing expense (5,917) (3,661)
Other (expense) income, net (700) 304
--------- --------
Net loss before taxes $ (59,307) $ (60,787)
--------- --------
(a) Demand 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 year.
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 year ended December 31, 2025:
Soluna
Soluna Digital Cloud
-------------------------------------------------------- -------
Project Project Project Soluna
Dorothy Dorothy Dorothy Project Digital Project
(Dollars in thousands) 1B 1A 2 Sophie Other Subtotal Ada Total
----------------------- -------- -------- -------- -------- ------ -------- ------- -------
Cryptocurrency mining
revenue $ 11,406 $ -- $ -- $ -- $ -- $ 11,406 $ -- $11,406
Data hosting revenue -- 6,176 5,662 5,160 -- 16,998 -- 16,998
High-performance
computing services -- -- -- -- -- -- 28 28
Demand response services 561 579 145 -- -- 1,285 -- 1,285
------- ------- ------- ------- ---- ------- ------ ------
Total revenue 11,967 6,755 5,807 5,160 -- 29,689 28 29,717
Cost of cryptocurrency
mining, exclusive of
depreciation $ 7,411 $ -- $ -- $ -- $ -- $ 7,411 $ -- $ 7,411
Cost of data hosting
revenue, exclusive of
depreciation -- 3,064 3,852 1,629 559 9,104 -- 9,104
Cost of high-performance
computing service
revenue -- -- -- -- -- -- 7 7
Cost of cryptocurrency
mining revenue-
depreciation 4,304 -- -- -- -- 4,304 -- 4,304
Cost of data hosting
revenue- depreciation -- 1,099 864 470 -- 2,433 -- 2,433
------- ------- ------- ------- ---- ------- ------ ------
Total cost of revenue 11,715 4,163 4,716 2,099 559 23,252 7 23,259
------- ------- ------- ------- ---- ------- ------ ------
Gross profit (loss) $ 252 $ 2,592 $ 1,091 $ 3,061 $(559) $ 6,437 $ 21 $ 6,458
------- ------- ------- ------- ---- ------- ------ ------
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 year ended December 31, 2024:
Soluna
Soluna Digital Cloud
-------------------------------------------------------- --------
Project Project Project Soluna
Dorothy Dorothy Dorothy Project Digital Project
(Dollars in thousands) 1B 1A 2 Sophie Other Subtotal Ada Total
----------------------- -------- -------- -------- -------- ------ -------- -------- -------
Cryptocurrency mining
revenue $ 17,027 $ -- $ -- $ -- $ -- $ 17,027 $ -- $17,027
Data hosting revenue -- 13,742 -- 5,096 -- 18,838 -- 18,838
High-performance
computing services -- -- -- -- -- -- 16 16
Demand response services 152 139 -- -- 1,849 2,140 -- 2,140
------- ------- ------- ------- ----- ------- ------ ------
Total revenue 17,179 13,881 -- 5,096 1,849 38,005 16 38,021
Cost of cryptocurrency
mining, exclusive of
depreciation $ 7,499 $ -- $ -- $ -- $ -- $ 7,499 $ -- $ 7,499
Cost of data hosting
revenue, exclusive of
depreciation -- 7,252 -- 2,059 66 9,377 -- 9,377
Cost of high-performance
computing service
revenue -- -- -- -- -- -- 5,724 5,724
Cost of cryptocurrency
mining revenue-
depreciation 4,292 -- -- -- -- 4,292 -- 4,292
Cost of data hosting
revenue- depreciation -- 1,162 -- 573 -- 1,735 -- 1,735
------- ------- ------- ------- ----- ------- ------ ------
Total cost of revenue 11,791 8,414 -- 2,632 66 22,903 5,724 28,627
------- ------- ------- ------- ----- ------- ------ ------
Gross profit (loss) $ 5,388 $ 5,467 $ -- $ 2,464 $1,783 $ 15,102 $(5,708) $ 9,394
------- ------- ------- ------- ----- ------- ------ ------
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:
Years Ended
(Dollars in thousands) December 31,
------------------------------------------- ----------------------
2025 2024
--------- -----------
Net loss from continuing operations $(56,991) $(58,300)
Interest expense 4,835 2,527
Income tax (benefit) expense (2,316) (2,487)
Depreciation and amortization 16,345 15,640
------- -------
EBITDA (38,127) (42,620)
------- -------
Adjustments: Non-cash items
Stock-based compensation costs 10,566 5,311
Loss on sale of fixed assets and credit on
equipment deposit 1,151 31
(Gain) loss on debt extinguishment and
revaluation, net (10,658) 1,644
Placement agent release expense -- 1,000
Fair value on placement agent warrant 146 --
Fair value adjustment loss 23,681 5,705
Loss on contract -- 28,593
Provision for credit losses -- 760
Convertible note inducement expense -- 388
Impairment on fixed assets 12 130
------- -------
Adjusted EBITDA $(13,229) $ 942
------- -------
The following table represents the EBITDA and Adjusted EBITDA activity between each three-month period from January 1, 2025 through December 31, 2025.
Three Three Three months Three months
months months ended ended Year ended
ended March ended June September December 31, December
(Dollars in thousands) 31, 2025 30, 2025 30, 2025 2025 31, 2025
----------- ----------- ------------ ------------ -----------
Net loss from
continuing operations $(7,354) $(7,780) $(25,787) $(16,070) $(56,991)
Interest expense, net 838 1,196 1,212 1,589 4,835
Income tax (benefit)
expense from
continuing operations (425) (608) (666) (617) (2,316)
Depreciation and
amortization 3,879 3,989 4,119 4,358 16,345
------ ------ ------- ------- -------
EBITDA (3,062) (3,203) (21,122) (10,740) (38,127)
------ ------ ------- ------- -------
Adjustments: Non-cash
items
Stock-based
compensation costs 1,847 1,942 1,882 4,895 10,566
Loss on sale of fixed
assets and credit on
equipment deposits -- 22 780 349 1,151
Fair value on placement
agent warrant and
financing fees -- -- 146 -- 146
Fair value adjustment
loss 118 -- 22,047 1,516 23,681
Impairment on fixed
assets -- 12 -- -- 12
Gain on debt
extinguishment and
revaluation, net (551) -- (10,107) -- (10,658)
------ ------ ------- ------- -------
Adjusted EBITDA $(1,648) $(1,227) $ (6,374) $ (3,980) $(13,229)
------ ------ ------- ------- -------
The following table represents the EBITDA and Adjusted EBITDA activity between each three-month period from January 1, 2024 through December 31, 2024.
Three
Three Three months Three months
months months ended ended Year ended
ended March ended June September December 31, December
(Dollars in thousands) 31, 2024 30, 2024 30, 2024 2024 31, 2024
----------- ----------- ----------- ------------ -----------
Net loss from
continuing operations $(2,544) $(9,145) $(8,093) $(38,518) $(58,300)
Interest expense, net 424 449 821 833 2,527
Income tax (benefit)
expense from
continuing operations (548) (649) (547) (743) (2,487)
Depreciation and
amortization 3,926 3,909 3,916 3,889 15,640
------ ------ ------ ------- -------
EBITDA 1,258 (5,436) (3,903) (34,539) (42,620)
------ ------ ------ ------- -------
Adjustments: Non-cash
items
Stock-based
compensation costs 661 1,368 1,257 2,025 5,311
Loss on sale of fixed
assets 1 21 -- 9 31
Provision for credit
losses -- 244 367 149 760
Convertible note
inducement expense -- -- -- 388 388
Placement agent release
expense -- -- -- 1,000 1,000
Loss on contract -- -- -- 28,593 28,593
Impairment on fixed
assets 130 -- -- -- 130
Fair value loss (gain)
adjustment 4,333 1,600 (328) 100 5,705
(Gain) loss on debt
extinguishment and
revaluation, net (1,236) 4,000 (875) (245) 1,644
------ ------ ------ ------- -------
Adjusted EBITDA $ 5,147 $ 1,797 $(3,482) $ (2,520) $ 942
------ ------ ------ ------- -------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260330987013/en/
CONTACT: Contact Information
Investor Relations
Soluna Holdings, Inc.
ir@soluna.io
(END) Dow Jones Newswires
March 30, 2026 07:31 ET (11:31 GMT)
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