Company: SLNH
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001641172-25-005429
Chunk: 13

Company: Soluna Holdings, Inc
Filing Date: 2025-04-18
Form: POS AM
Chunk 13
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 include such shares in the Company’s next registration statement. The number of shares issued was calculated
based on the five-day VWAP ending October 1, 2024. The Release Shares were issued in a private placement exempt from registration pursuant
to Section 4(a)(2) of the Securities Act. Pursuant to the Release Agreement, the shares were issued to settle all financial matters between
the Company and Univest, including any payment obligations that the Company had towards Univest in connection with the services that Univest
provided, in exchange for a mutual release. Also under the Release Agreement, Univest agreed, during the Leak-Out Period, to not sell
such shares in excess of 1/3 of the shares of Common Stock beneficially owned by Univest and its affiliates on the day immediately prior
to the first day of the Leak-Out Period.

Recent Developments

Soluna Cloud - Termination of HPE Agreement

Soluna launched Project Ada- its GPU-as-a-Service
business, via Soluna Cloud, Inc. (“Soluna Cloud”), a subsidiary of the Company, earlier in 2024, in order to achieve two primary
goals:

| 1. | Gain commercial experience in the AI/HPC market in support of future data center development focused on LLMs and other AI workloads. |
| 2. | Capitalize on lower-cost capital to pursue high-growth revenue opportunities in the compute infrastructure market.                   |

As a point of entry into Project Ada, Soluna AL CloudCo,
LLC (“CloudCo”), a subsidiary of Soluna Cloud, entered into the HPC & AI Cloud Services Agreement and HPE Greenlake Services
Custom Statement of Work with HPE on June 18, 2024, that provided data center and cloud services for AI and supercomputing applications,
utilizing NVIDIA H100 GPUs (together with the associated Statement of Work, the “HPE Agreement”).

At the time of launch, the market for NVIDIA H100
GPUs was characterized by constrained supply and strong pricing, which aligned with the economics of the fixed-cost HPE Agreement. However,
by the end of 2024, the GPU market shifted significantly. Lead times for NVIDIA H100 GPUs shortened from over 50 weeks in 2023 to 8-12
weeks by the end of 2024, easing supply constraints and reducing urgency among buyers. At the same time, market demand shifted toward
larger GPU clusters than those available under the HPE Agreement