Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 72

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 our proprietary operating system
(“MaestroOS”), which continuously analyzes signals like local power pricing, weather, grid demand, and market conditions to
optimize performance and economics.

This intelligent orchestration enables long-term asset
monetization and attractive returns on invested capital. Our approach is purpose-built for the energy transition. We specialize in curtailment
solutions, working closely with leading renewable energy developers to access underutilized, low-cost power. Our behind-the-meter model
allows us to draw energy directly from the plant or the grid, while also providing demand response services—reducing costs and enhancing
grid resilience.

A key strategic advantage is our model of co-locating
data centers directly with renewable power generation assets. By building behind the meter, we are able to bypass long interconnection
queues and source electricity directly from the generation site. This structure not only improves power economics, but also accelerates
time-to-market—an increasingly important factor for companies with large, time-sensitive computing workloads such as AI and HPC.

With a repeatable strategy and a growing pipeline
of projects, we are scaling a new category of digital infrastructure—one that energizes the grid, lowers computing costs, and advances
a more sustainable future.

We operate across multiple business lines and generate
revenue from four primary sources, as described below:

    ●
    Bitcoin Mining Business – We mine Bitcoin through proprietary operations and joint ventures located at our data centers.

    ●
    Bitcoin Hosting Business – We provide hosting services to third-party Bitcoin mining customers at our data centers.

    ●
    High Performance Computing (HPC) Business – We offer colocation and hosting services for companies seeking to train large language models (LLMs), fine-tune existing artificial intelligence models, and deploy other compute-intensive AI or HPC workloads.

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

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In 2024, 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