Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 82

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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30, 2025 compared to the three
months ended June 30, 2024 related to the Bitcoin halving event that occurred in April 2024, resulting in a $1.0 million decrease
from price and a $583 thousand decrease due to  volume driven primarily by aging of miners and higher curtailment in
2025 which resulted in  fewer available hours.

Data
Hosting Revenue: Cryptocurrency hosting services provide energized space and operating services to third-party mining companies
who locate their mining hardware at our mining locations- D1A, D2 and Project Sophie. Services include fees for hosting the miners
which could be fixed fees or profit sharing, as well as potential additional fees for services provided such as installation charges
or other services fees. The decrease for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 related
mainly in December 2024, in which one of our largest customers who was on a fixed fee charge exited, and  the replacement
customers were on a profit-sharing fee structure,thereby causing a contract mix change.

Demand
Response Service: Demand response service revenue was lower in the three months ended June 30, 2025 compared to the three
months ended June, 2024 due to the fact that the capacity of MWs that we bid on were less due to known outages in the Texas area, as
well as the aging of machines for D1B.

Cost
of Cryptocurrency Mining Revenue, exclusive of depreciation: Cost of cryptocurrency mining revenue includes direct utility
costs, site overhead expenses, and overhead costs that relate to the operations of our cryptocurrency mining facilities in Kentucky and
Texas.

The
decrease in costs for the three months ended June 30, 2025 compared to three months ended June 30, 2024 relate mainly to slight decreases
in operating and electricity costs due to slight decrease in electricity usage.

Cost
of Data Hosting Revenue, exclusive of depreciation: Cost of data hosting revenue includes utility charges, site overhead expenses,
and other charges.

Cost
of data hosting decreased for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 mainly due to a change
in hosting contracts mix, in which contracts were entered that included electricity passthrough contracts replacing fixed rate volume
contracts.

General
and Administrative Expenses, exclusive of depreciation and amortization: General and administrative expenses, exclusive of depreciation