Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 269

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 269
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 centers in Texas, which generated the majority of our revenue in both 2023 and 2024. Our growth plans also focus
on new projects in Texas, making our business highly dependent on the state’s regulatory environment, market conditions, and exposure
to weather events or natural disasters.

Texas
has supported Bitcoin mining through favorable regulations and economic incentives, but this has also led to increased competition for
suitable sites and skilled labor. Our operations could be impacted by construction delays, rising costs for equipment or labor, supply
chain disruptions, or disputes with contractors.

In
2022, ERCOT—the operator of Texas’ power grid—began requiring large-scale digital asset miners to apply for grid connection
approval and established a task force to review how large flexible loads (like Bitcoin data centers) interact with the grid. This has
led to delays for some miners in getting energized, and we could face similar delays in the future.

If
Texas were to change its policies, increase taxes, or reduce its support for Bitcoin mining, our concentration in the state could significantly
affect our business, financial condition, and results of operations.

22

Risks
Related to our Bitcoin Mining and Hosting Business

Our
success depends on external factors affecting the Bitcoin industry.

Our
success is closely tied to the health of the Bitcoin market, which is influenced by factors beyond our control. Historically, Bitcoin
ownership has been concentrated among a small number of holders, often called “whales.” Although ownership has become more
distributed, large holders still exist and could impact the market by selling large amounts of Bitcoin, which may reduce demand and drive
down prices.

While
more regulated and transparent exchanges have emerged, the Bitcoin market remains relatively new and less regulated than traditional
financial markets. Some trading platforms may be more prone to technical issues, fraud, or unethical practices such as:

●Wash
                                            trading (creating artificial trading volume),

●Front-running
                                            (using early access to trade information for unfair advantage), and

●Lack
                                            of transparency in ownership, governance, and compliance.

These
issues may erode public trust in Bitcoin markets and lead to price volatility. A significant drop in the price or perceived reliability
of Bitcoin could negatively impact our business and financial results.

Our
profitability depends on Bitcoin prices and the stability of Digital Asset markets, which are highly volatile and largely unregulated.

Our
ability to achieve and maintain profitability is closely tied to the market price of Bitcoin, which has historically been highly volatile