Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2624

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2624
---
 power purchase agreements and land leases through a series of service subsidiaries.

During
fiscal year 2021, the Company commenced mining operations at its Murray, Kentucky location (“Project Sophie”) and Calvert
City, Kentucky site (“Project Marie”). Project Marie was decommissioned in February 2023, while Project Sophie transitioned
its focus from proprietary Bitcoin mining to hosting customers’ Bitcoin mining operations in the second quarter of 2023. All 25 MW of Project Sophie now perform data hosting services. The Company has since sold all Bitcoin miners at Project
Sophie and redeployed the capital.

The
Company’s Texas site (“Project Dorothy”), located at a wind farm, holds the potential for up to 100 MW of power generation.
By June 2024, SHI had energized 50 MW of the site across two phases, Project Dorothy 1A and 1B. As of December 31, 2024, SHI holds a
15% ownership interest in Soluna DVSL ComputeCo, LLC (“DVSL”), owner of Project Dorothy 1A, and a 51% ownership interest
in Soluna DV ComputeCo, LLC (“DVCC”), owner of Project Dorothy 1B. On July 22, 2024, the Company closed financing for the
48 MW modular data center (the “Project Dorothy 2”). Project Dorothy 2 is financed by Soluna2 SLC Fund II Project Holdco
LLC, an investment vehicle of Spring Lane Capital (“SLC”) and SDI. As of December 31, 2024, SDI has a 15% ownership interest
in Project Dorothy 2.

On
June 18, 2024, Soluna AL CloudCo, LLC (“CloudCo”), a subsidiary of Soluna Cloud, entered into an agreement (the
“HPE Agreement”) with Hewlett Packard Enterprise Company (“HPE”). Under this agreement, HPE provided
datacenter and cloud services for AI and supercomputing applications utilizing NVIDIA H100 Graphic Processing Units
(“GPUs”). This agreement involved an initial pre-payment of $10.3
million, with a total commitment of $34
million over a 36-month period and offered the potential for expansion based on mutual agreement. On March 24, 2025, CloudCo notified
HPE of its termination of the HPE Agreement in accordance with the provisions of Section 8(d), and, on March 26, 2025, H