Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 24

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 24
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 continue to obtain sufficient electrical power on a cost-effective basis, we may not realize the anticipated
benefits of our significant capital investments.

Global economic and geopolitical events, policies
and conflicts may adversely affect our business, financial condition, and results of operations. 

We may be exposed to price volatility and uncertainty
in our supply chain due to geopolitical crises and economic downturns such as recessions, rising inflation, tariffs, social, political,
and economic risks, conflicts and acts of war, sanctions and other restrictive actions by the United States and/or other countries. Changes
in policy positions and priorities from the new U.S. government administration could increase this price volatility and uncertainty. Such
crises will likely continue to influence our ability to do business in a cost-effective manner. Inflationary pressures, as well
as disruptions in our supply chain, have increased the costs of goods, services, and personnel, which have in turn caused our capital expenditures
and operating costs to rise. Additionally, these crises may discourage investment in Bitcoin and investors may shift their investments
to less volatile assets. The effects of such global economic shifts, worsening inflationary issues, changes in policy, and geopolitical
events could adversely affect our ability to access the capital and other financial markets, as such, we may be required to consider alternative
sources of funding for our growth and operations which may increase our cost of capital. Such events and conditions could have a materially
adverse effect on our business, operations, or financial results and the value of the Bitcoin we mine.

21

We may not be able to continue to develop our technology and keep pace
with technological developments, or otherwise compete with other companies, many of which have greater resources and experience.

We currently lack the financial resources to compete directly with larger,
well-funded companies in cryptocurrency mining and advanced data processing, including cloud, AI, and HPC data center operators. These
markets attract major players with far greater capital and scale, making it difficult for us to expand or introduce new offerings.

Rapid changes in technology further increase this challenge. We may not
be able to keep up with new developments, adopt new technologies quickly, or do so in a cost-effective way. Some of our equipment may
become outdated, and upgrading or replacing it—especially mining hardware or advanced AI infrastructure—could be costly and
time-consuming. Supply chain constraints, long lead times, and competition for key components like semiconductors could further limit
our ability to stay current.

Implementing new technology may also lead