Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 230

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 230
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egan planning for the 48 MW expansion of Project Dorothy in 2023 – known as Project Dorothy 2. We partnered with SLC who agreed
to finance up to $30 million of the project cost. We closed the initial financing contribution and operation agreement with SLC in July
2024 and broke ground in the third quarter of 2024. Initial energization and ramp-up began as of May 2025. This has enabled the commencement
of the commissioning of the first of 3 phases, of 16 MW, that began in May 2025 and was completed at the end of October 2025, as the site is now fully operational. As each phase was commissioned, it began to generate revenue, both due to Bitcoin Hosting
and Demand Response Services. D2 features a superior financial waterfall structure and enhanced management and development fees for Soluna
compared to D1A, 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 to customers. As of September 30, 2025, there are approximately 9,400 Bitcoin miners
installed or contracted to be installed, resulting in an installed hashrate of approximately 1.23 EH/s.

Project
Kati

We
are developing Project Kati in Willacy County, Texas, which is expected to be developed into 166 MW (broken out in 2 phases) of data
centers for HPC, Bitcoin Hosting and other computing-intensive applications. It is co-located with a 272.6MW wind farm. 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