Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 7

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 7
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Kati

We
are developing Project Kati in Willacy County, Texas, which is expected to be up to 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 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.

Competition

We
operate in a highly competitive sector characterized by a growing number of participants and increasing capital investment. Our approach
to sourcing renewable energy focuses on curtailed or underutilized power, which is typically priced below market rates. This enables
us to offer competitively priced, sustainability-aligned computing solutions.

We
believe one of our key strategic advantages is our model of co-locating data centers directly with renewable power generation assets.
By building behind the meter, we are able to bypass long interconnection queues and source electricity directly from the generation site.
This structure not only improves power economics, but also accelerates time-to-market—an increasingly important factor for companies
with large, time-sensitive computing workloads such as AI and HPC.

We
believe this combination of low-cost power access, grid efficiency, and sustainability focus positions us as a differentiated provider
in the digital infrastructure space.

11

Our emerging HPC Business competes
with leading NeoCloud companies such as Crusoe, CoreWeave, Lambda, and Nebius. While these companies are much larger than we are today,
we believe our competitive advantage lies in our ability to source renewable energy for the growth of this business faster and at better
costs than our competitors.

Our Bitcoin Hosting Business competes with
a large number of other hosting operators. We compete with public and private companies including: BitFuFu, Border,