Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 78

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 allowing us to benefit
from improved income once the facility is operational.

Project Grace

Project Grace is a 2 MW project located at the D2
site focused on next generation data center designs for AI. It contemplates new direct liquid cooling technologies, proprietary building
and power designs – called Helix.

Project Sophie

Project Sophie is a 25 MW data center, based in Murray,
Kentucky connected to the grid (“Sophie”). The project has a Power Purchase Agreement (“PPA”) that requires the
curtailment of the site during certain hours of the day to help balance the Kentucky grid. We own 100% of the facility, which was completed
in 2021.

Sophie is focused on Bitcoin Hosting of multiple large
customers. The data center generates revenue via a combination of fixed services fees and profit share, while energy cost is passed through.
As of March 31, 2025, there are approximately 8,600 Bitcoin miners installed or contracted to be installed, resulting in an installed
hashrate of approximately 1.07 EH/s and achieved a PUE of 1.03.

Project Kati

We are developing Project Kati in Willacy County,
Texas, which is expected to be developed into 166 MW of data centers for HPC, Bitcoin Hosting and other computing-intensive applications.
It is co-located with a 272.6MW wind farm in Texas. We have completed the necessary studies for the ERCOT planning phase, which is the
last formal step to secure approvals by regulatory agencies or grid operators, such as ERCOT in Texas, to proceed with project construction
and commissioning. We have also completed the necessary amendments to the interconnection agreements with American Electric Power, the
transmission service provider. We have also secured land, contingent on reaching final agreement with local government and schools regarding
taxation, for the project and have started capital formation activities.

Project Rosa

We are developing Project Rosa in Snyder, Texas, which
is expected to be up to 187 MW of data center capacity for AI and Bitcoin Hosting and other computing-intensive applications. It will
be co-located with a 242.5 MW wind farm in Texas. We have signed term sheets for both power and land purchase agreements in connection
with this project.

Our Growth Strategy

Our growth strategy is focused on expanding our pipeline
of renewable energy-powered data center projects and accelerating their development through joint ventures, co-ownership structures, and
other strategic partnerships. Over time, we intend