Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1
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ates time-to-market—an increasingly important factor for companies with large,
time-sensitive computing workloads such as AI and HPC.

With
a repeatable strategy and a growing pipeline of projects, we are scaling a new category of digital infrastructure—one that energizes
the grid, lowers computing costs, and advances a more sustainable future.

We
operate across multiple business lines and generate revenue from four primary sources, as described below:

●Bitcoin
                                            Mining Business – We mine Bitcoin through proprietary operations and joint ventures
                                            located at our data centers.

●Bitcoin
                                            Hosting Business – We provide hosting services to third-party Bitcoin mining customers
                                            at our data centers.

●High
                                            Performance Computing (HPC) Business – We offer colocation and hosting services
                                            for companies seeking to train large language models (LLMs), fine-tune existing artificial
                                            intelligence models, and deploy other compute-intensive AI or HPC workloads.

●Demand
                                            Response Business – We leverage our data center infrastructure to provide demand
                                            response services to grid operators.

6

In
2024, our execution strategy was centered around four key initiatives:

1.Project
                                            Optimization – Enhancing the profitability, operational efficiency, and customer
                                            mix of our operating data centers, while improving overall customer satisfaction.

2.Pipeline
                                            Expansion – Increasing the number of curtailment assessments completed with power
                                            partners, advancing more projects to shovel-ready status, and executing additional project
                                            term sheets.

3.Launch
                                            AI – Initiating the entry into the AI market, by starting project development activities
                                            focused on supporting artificial intelligence workloads, and the formation of strategic partnerships
                                            with major HPC original equipment manufacturers.

4.Capital
                                            Formation – Pursuing financing opportunities to support key growth initiatives,
                                            including Project Dorothy 2 (“D2”) and Project Kati.

Lines
of Business

Bitcoin
Mining Business

We
engage in proprietary Bitcoin mining, a process that verifies transactions and secures the Bitcoin blockchain. This process involves
the use of specialized computing equipment to solve complex cryptographic algorithms. Miners compete to solve these algorithms; the first
to do so is awarded a predetermined number of newly issued Bitcoins (the “Block Reward”) and any transaction fees associated
with that block.

We
participate in one or more mining pools—collaborative networks of miners who combine computing power to improve the probability
of earning rewards. Block Rewards earned by the pool are distributed among participants based on each member’s proportional contribution.