Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 312

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 312
---
,387

    1,905

    10

    17,209

    2,859

    20,068

    Gross
    profit
     
    $
    4,784

    $
    4,236

    $
    1,918

    $
    1,602

    $
    12,540

    $
    (2,859)

    $
    9,681

Cryptocurrency
Mining Revenue: Cryptocurrency mining revenue decreased between the nine months ended September 30, 2025 compared to the
nine months ended September 30, 2024 related to the Bitcoin halving event that occurred in April 2024, which reduced the block
reward by 50%, in addition to aging miners, which was offset by a change in bitcoin price. We were rewarded 85.8 Bitcoins for the
nine months ended September 30, 2025 compared to 233.6 Bitcoins for the nine months ended September 30, 2024. The number of coins
decreased by 63.3% but the BTC price of a Bitcoin increased 70.2%, therefore offsetting the difference between the nine
months.

Data
Hosting Revenue: Cryptocurrency Hosting Services involve providing energized space and comprehensive operating support to third-party
mining companies that locate their hardware at our dedicated facilities, including D1A and Project Sophie. Revenue for these services
is derived from hosting fees, which utilize either a fixed-fee or a profit-sharing fee structure, along with additional service fees
such for equipment installation.

Hosting
revenue decreased for the nine months ended September 30, 2025, compared to the same period in 2024. This decline was primarily attributable
to the following factors: (i) Bitcoin Halving Event: The industry-wide Bitcoin Halving event, which occurred in April 2024, inherently
drove down the effective dollar value per Petahash (“PH”) per day, impacting revenue generated from both fixed-fee and profit-sharing
contracts; and (ii) Customer Contract Mix Shift: In December 2024, one of our largest customers exited, creating a temporary gap of 20
MW of vacant capacity. Although this capacity was successfully refilled gradually between December 2024 and March 2025, the replacement
customers were onboarded under the profit-sharing fee structure. This shift reduced the revenue yield compared to the fixed-fee model
previously in place