Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 270

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 270
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and influenced by factors beyond our control. These include market speculation, global economic and political events, regulatory changes,
energy prices, activity by large holders (“whales”), and technical or operational issues at major exchanges.

Digital
asset exchanges—where Bitcoin and other cryptocurrencies are traded—are relatively new and largely unregulated. Many lack
transparency in ownership, management, and compliance practices. This has led to market instability, particularly when major exchanges
have collapsed, faced hacking incidents, or become subject to regulatory investigations. Notable examples include the collapse of FTX
and scrutiny of Binance, which contributed to sharp price declines and increased negative publicity across the cryptocurrency industry.
In 2022 and 2023, average Bitcoin prices were $27,796 and $29,870, respectively. While the price rebounded to $93,429 by the end of 2024,
it remains unpredictable.

A
lack of trust in digital asset exchanges or their closure—whether due to fraud, government action, or business failure—can
further undermine public confidence in Bitcoin, increase market volatility, and negatively impact our business. These risks may continue
to evolve in ways we cannot fully anticipate.

In
addition, Bitcoin has a fixed supply of 21 million coins, with about 19.8 million already mined. As block rewards decline through scheduled
“halvings” and eventually phase out, our revenue from mining will increasingly rely on transaction fees. While these fees
have grown, there is no guarantee they will be sufficient to support profitability in the long term.

Volatility
also affects how much revenue we realize from converting mined Bitcoin into U.S. dollars and makes financial planning more difficult.
A prolonged decline in Bitcoin prices could also affect the ability of our co-hosting customers to pay for services, reducing our revenue
and delaying expansion.

If
Bitcoin prices fall or fail to meet our expectations, or if instability in the broader digital asset market increases, our financial
condition and results of operations could be materially and adversely affected.

23

Regulatory
changes or actions may alter the nature of an investment in us or restrict the use of cryptocurrencies in a manner that adversely affects
our business, prospects, or operations.

The
regulatory environment for cryptocurrencies is evolving and uncertain. Governments around the world have taken varied approaches—some
banning cryptocurrencies entirely, others permitting them with little restriction, and many (including the U.S.) applying complex and
changing rules to mining, ownership, and trading.

In
the U.S