Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 273

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 273
---
, these factors could materially impact our business, financial condition, and the long-term sustainability of our operations.

25

Because
most of our and our hosted customers’ miners are designed specifically to mine Bitcoin and may not be readily adaptable to mining
other cryptocurrencies, a sustained decline in Bitcoin’s value could adversely affect our business and results of operations.

We
and our hosted customers have invested substantial capital in acquiring miners designed specifically to mine Bitcoin as efficiently and
as rapidly as possible on our assumption that we will be able to use them to mine Bitcoin and generate revenue from our operations. Therefore,
our mining and hosting operations focus primarily on mining Bitcoin, and our revenue is largely based on the value of Bitcoin. Accordingly,
if the value of Bitcoin declines and fails to recover, for example, because of the development and acceptance of competing blockchain
platforms or technologies, including competing cryptocurrencies which our miners or our customers’ miners may not be able to mine,
the revenue we generate from our operations will likewise decline. Moreover, we may not be able to successfully repurpose our operations
in a timely manner, if at all, if we or our customers decide to switch to mining a different cryptocurrency (or to another purpose altogether)
following a sustained decline in Bitcoin’s value or if Bitcoin is replaced by another cryptocurrency. This could have a material
adverse effect on our business, prospects, operations, and financial condition, as well as on the market value of our securities.

Our
data center business could be harmed by prolonged power outages, power and fuel shortages, capacity constraints and increases in power
costs.

Our
data centers rely on consistent, high-capacity electricity supply, and any disruption—planned or unplanned—could negatively
impact our operations and customer experience. Power outages caused by storms, fires, cyberattacks, utility failures, or infrastructure
issues may lead to downtime and revenue loss. In some leased facilities, we may depend on landlords or utility providers to restore power,
limiting our control in an outage.

While
we may use backup generators and other measures to reduce downtime, they may not always be sufficient. Additionally, as customer equipment
becomes more power-intensive, total energy consumption at our facilities may exceed original design expectations, potentially limiting
available capacity and future growth.

We
also face rising electricity costs driven by global energy market volatility, including supply disruptions from the Russia-Ukraine conflict,
increased seasonal demand, and broader macroeconomic pressures. Over time, electricity prices may continue to rise due to climate change
imp