Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 218

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 218
---
 Mining Business represented
approximately 51% of total revenue.

Bitcoin Hosting Business

We provide colocation and hosting services for third-party
Bitcoin mining customers at our data centers. Customers contract space based on their power requirements. Our current customer base includes
several large-scale (“Hyperscale”) Bitcoin miners. Contracts typically range from 12 to 24 months in duration.

37

We offer two primary commercial structures:

    1.
    Fixed-Fee Model – Customers pay a fixed fee based on the volume of energy consumed.

    2.
    Profit-Share Model – Customers pay a share of the profits from their mining activity, with power costs passed through.

For the three months ended March 31, 2025, our Bitcoin
Hosting Business accounted for approximately 40% of total revenue. Revenue in this business was concentrated among a small number of customers.
For the three months ended March 31, 2025, three customers made up approximately 83% of hosting revenue and 33% of total revenue.

High Performance Computing (HPC) Business

In June 2024, we began providing GPU-as-a-Service
in partnership with Hewlett Packard Enterprise Company (“HPE”), offering GPU resources to startups, enterprises, and GPU marketplaces
for a fee. As further described below in “Recent Developments”, we terminated our agreement with HPE.

We are currently developing new infrastructure projects
intended to support AI and HPC workloads. These efforts include engagement with potential joint venture partners, conducting site and
feasibility studies, securing access to power and land, and performing other early-stage development activities.

Our first planned AI/HPC colocation project is Project
Kati, which is in advanced development. Additional projects, including the announced Project Rosa, are also in progress. For
the fiscal year 2024 and the three months ended March 31, 2025, we generated minimal revenue from our HPC Business.

Demand Response Business

We provide demand response services to grid operators
and utilities by leveraging our data centers as dispatchable energy resources. In select states where we operate, our data centers are
enrolled in ancillary services programs that support grid reliability.

Under these programs, we commit to reducing a facility’s
power consumption to a predetermined level when called upon by the grid operator. In return, we receive compensation for maintaining this
dispatch capability, provided we meet specific performance criteria. For example, to qualify for compensation in a given period—typically
monthly—the data