Company: SLNH
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001641172-25-006194
Chunk: 8

Company: Soluna Holdings, Inc
Filing Date: 2025-04-25
Form: 424B3
Chunk 8
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 Packard Enterprise Company (“HPE”), offering GPU resources
to startups, enterprises, and GPU marketplaces for a fee. In March 2025, we terminated our agreement with HPE.

We are currently developing new infrastructure projects
intended to support AI and HPC workloads. These efforts include engagement with potential joint venture partners, conducting site and
feasibility studies, securing access to power and land, and performing other early-stage development activities.

Our first planned AI/HPC colocation project is Project Kati, which is in advanced development. Additional projects, including the announced Project Rosa, are also in progress. For
the year ended December 31, 2024, we generated minimal revenue from our HPC Business.

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Demand Response Business

We provide demand response services to grid operators
and utilities by leveraging our data centers as dispatchable energy resources. In select states where we operate, our data centers are
enrolled in ancillary services programs that support grid reliability.

Under these programs, we commit to reducing a facility’s
power consumption to a predetermined level when called upon by the grid operator. In return, we receive compensation for maintaining this
dispatch capability, provided we meet specific performance criteria. For example, to qualify for compensation in a given period-typically
monthly-the data center must meet minimum uptime and availability requirements.

For the year ended December 31, 2024, our Demand Response
Business represented approximately 6% of total revenue.

Standby Equity Purchase Agreement with the Investor

On August 12, 2024, we entered into the SEPA with
the Investor. Pursuant to the terms of the SEPA, the Company agreed to issue and sell to the Investor, from time to time, and the Investor
agreed to purchase from the Company, up to $25 million of the Company’s shares of Common Stock. As of April 18, 2025, we
have issued and sold 1,512,872 shares of our Common Stock to the Investor pursuant to the SEPA. We are registering hereunder the resale
of 1,487,128 shares of Common Stock that we may, at our discretion, elect to issue and sell the Investor from time to time after the
date of this prospectus, pursuant to the SEPA.

Under the SEPA, shares of Common Stock may be issued
and sold to the Investor under one of two pricing options, at the election of the Company. Under the first option (“Pricing Option