Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 29

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 29
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 broadly. Further, we may
be subject to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties as a result of any
regulatory enforcement actions, all of which could harm our reputation and affect the value of our securities.

24

Security
breaches and irreversible transactions could result in the loss of our cryptocurrencies.

Our
operations rely on third-party platforms such as the Luxor mining pool and exchanges like Coinbase to store and manage our cryptocurrencies.
Like others in the industry, we face risks from security breaches, including hacking, malware, or insider error. A successful attack
on our systems or those of our partners could result in the theft or loss of our digital assets, compromise confidential information,
disrupt operations, and damage our reputation.

Additionally,
cryptocurrency transactions are typically irreversible. If coins are accidentally sent to the wrong address or stolen through fraud or
theft, we may have no way to recover them. Any such losses—whether from security incidents or transactional errors—could
negatively affect our business, financial condition, and results of operations, and may also impact investor confidence.

Uncertainty
around the adoption, use, and global demand for cryptocurrencies could adversely affect our business.

Our
business depends on the continued demand for, and value of, cryptocurrencies—particularly Bitcoin—which is influenced by
a variety of factors, including adoption, usability, and global economic and geopolitical events. However, the future of cryptocurrency
as a widely used payment method remains uncertain.

Despite
growing awareness, cryptocurrencies face major adoption and scaling challenges. High transaction costs, slow processing times, and limited
throughput have restricted their use in everyday transactions. Although efforts are underway to address these issues through protocol
upgrades and second-layer technologies, there is no assurance that such solutions will succeed or gain broad acceptance. If these problems
persist, demand for cryptocurrencies may decline, reducing the viability of mining and the need for services like ours.

Additionally,
most cryptocurrency demand today is driven by investment and speculation rather than retail or commercial use. Widespread acceptance
as a medium of exchange has not occurred—and may never occur. If adoption stalls or declines, the value of the cryptocurrencies
we or our hosted customers mine could drop, impacting our revenues and growth prospects.

Geopolitical
and economic events also create uncertainty. Crises can lead to sudden surges in demand, driving up prices temporarily, but also increasing
the risk of sharp price declines once the crisis subsides. Alternatively, in times of global instability or economic downturn