Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 286

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 286
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 every four years, reducing the Block Reward and potentially impacting future revenue. For the three and nine months
ended September 30, 2025, our Bitcoin Mining Business represented approximately 33% and 42% of total revenue. For the three and nine
months ended September 30, 2024, our Bitcoin Mining Business represented approximately 37% and 46% of total revenue.

45

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.

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 and nine months ended September 30, 2025, our Bitcoin Hosting Business accounted for approximately 62% and 53% of total revenue.
For the three and nine months ended September 30, 2024, our Bitcoin Hosting Business accounted for approximately 57% and 49% of total
revenue. Revenue in the Bitcoin Hosting Business was concentrated among a small number of customers. For the three months ended September
30, 2025, two customers made up approximately 63% of hosting revenue and 40% of total revenue. For the nine months ended September 30,
2025, three customers made up approximately 80% of hosting revenue and 42% 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 in our Annual Report, 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 active construction, and breaking ground near the end of
the third quarter