Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 285

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 285
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 or HPC workloads.

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

44

In
2024 and into 2025, 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.

Revenue
Sources

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.
This model helps reduce revenue volatility compared to solo mining operations.

Our
mining operations are energy-intensive and require significant computational resources. We operate data centers equipped with both proprietary
and third-party hardware and software. Our proprietary data center operating system, MaestroOS, is used to optimize performance,
manage power consumption, and increase operational efficiency.

Revenue
from Bitcoin mining consists of Block Rewards and transaction fees and is recognized upon receipt in accordance with applicable accounting
guidance. Upon receipt, all digital assets are promptly converted into U.S. dollars through the Coinbase cryptocurrency exchange.

The
profitability of this business is affected by several variables, including the market price of Bitcoin, global network hash rate, mining
difficulty, electricity and infrastructure costs, and mining pool fees. In addition, Bitcoin undergoes a periodic “halving”
event approximately