Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 73

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 on proprietary Bitcoin Mining. There are approximately 6,900 Bitmain Antminer S19s, S19j Pro and S19j Pro+ machines installed,
resulting in an installed hashrate of 817 PH/s. For the year ended December 31, 2024, D1B consumed over 44,500 MWh of Curtailed Energy
and for the three and six months ended June 30, 2025, D1B consumed over 11,300 MWh and 24,400 MWh of Curtailed Energy. D1B is co-owned
by Navitas, which owns approximately 49% of D1B, while we own the remaining 51%.

In
November 2023, we completed registration of Project Dorothy in one of the ERCOT’s Demand Response Services (“DRS”)
programs. This designation positioned Project Dorothy as a contributor to grid flexibility and resilience in the Texas power market,
while also enabling us to diversify our revenue streams.

Under
the DRS program, we commit to maintaining a specified level of curtailment capacity—measured as load reduction availability—on
a monthly basis. When called upon by ERCOT, we are required to reduce the facility’s power consumption by the committed amount.
In exchange, we receive compensation for maintaining this curtailment readiness, regardless of whether an actual dispatch occurs.

Participation
in the program allows us to generate incremental revenue and offset power costs at Project Dorothy, enhancing its cost-efficiency. As
a result, the facility ranks among the lowest-cost operators in the sector. Since registration, Project Dorothy has successfully fulfilled
its obligations in the Winter, Spring, and Summer DRS periods, and is currently enrolled in the Fall standby period.

Project
Dorothy 2

We
began 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, each of 16MW, that began in May 2025 and is expected to continue through October 2025 when the
site is expected to be fully operational. As each phase is