Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 88

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 88
---

    $1,072  
    $870  
    $6,934  
    $-  
    $6,934 

44

Cryptocurrency Mining Revenue: Cryptocurrency
mining revenue decreased between the three months ended March 31, 2025 compared to the three months ended March 31, 2024 related to the
Bitcoin halving event that occurred in April 2024, which reduced the block reward by 50%, which was offset by a change in bitcoin price.
We were rewarded 32.5 Bitcoins for the three months ended March 31, 2025 compared to 119.6 Bitcoins for the three months ended March 31,
2024.

Data Hosting Revenue: Cryptocurrency
hosting services provide energized space and operating services to third-party mining companies who locate their mining hardware at our
mining locations- D1A and Project Sophie. Services include fees for hosting the miners which could be fixed fees or profit sharing, as
well as potential additional fees for services provided such as installation charges or other services fees. The decrease for the three
months ended March 31, 2025 compared to the three months ended March 31, 2024 relate to the Bitcoin halving event that occurred in April
2024, which drove down the dollar Petahash (“PH”) per day. Also, in December 2024, one of our largest customers exited leaving
20 MW of capacity to fill that was ultimately filled slowly over December 2024 and into March 2025.

Demand Response Service: Demand response
service revenue was lower in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to the ERCOT
Clearing price decreasing by approximately $30 per MW between the comparable periods, in addition to the capacity that we bid on was reduced
by 7 MW from 38 MW capacity for the first quarter of 2024 compared to 31 MW capacity for the first quarter of 2025.

Cost of Cryptocurrency Mining Revenue, exclusive
of depreciation: Cost of cryptocurrency mining revenue includes direct utility costs, site overhead expenses, and overhead
costs that relate to the operations of our cryptocurrency mining facilities in Kentucky and Texas.

The increase in costs for the three months ended March
31, 2025 compared to three months ended March 31, 2024 relate mainly to slight increases in operating and electricity costs.

Cost of Data Hosting Revenue, exclusive of depreciation