Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 182

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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 quarter of 2025. This will enable the commencement of the commissioning
of the first of 3 phases, each of 16MW, that will occur between May and October 2025 when the site is expected to be fully operational.
As each phase is commissioned, it will begin to generate revenue, both due to Bitcoin Hosting and Demand Response Services. D2 features
a superior financial waterfall structure and enhanced management and development fees for Soluna compared to D1A, allowing us to benefit
from improved income once the facility is operational.

Project Grace

Project Grace is a 2 MW project located at the D2
site focused on next generation data center designs for AI. It contemplates new direct liquid cooling technologies, proprietary building
and power designs – called Helix.

Project Sophie

Project Sophie is a 25 MW data center, based in Murray,
Kentucky connected to the grid (“Sophie”). The project has a Power Purchase Agreement (“PPA”) that requires the
curtailment of the site during certain hours of the day to help balance the Kentucky grid. We own 100% of the facility, which was completed
in 2021.

Sophie is focused on Bitcoin Hosting of multiple large
customers. The data center generates revenue via a combination of fixed services fees and profit share, while energy cost is passed through.
As of March 31, 2025, there are approximately 8,600 Bitcoin miners installed or contracted to be installed, resulting in an installed
hashrate of approximately 1.07 EH/s and achieved a PUE of 1.03.

Project Kati

We are developing Project Kati in Willacy County,
Texas, which is expected to be developed into 166 MW of data centers for HPC, Bitcoin Hosting and other computing-intensive applications.
It is co-located with a 272.6MW wind farm in Texas. We have completed the necessary studies for the ERCOT planning phase, which is the
last formal step to secure approvals by regulatory agencies or grid operators, such as ERCOT in Texas, to proceed with project construction
and commissioning. We have also completed the necessary amendments to the interconnection agreements with American Electric Power, the
transmission service provider. We have also secured land, contingent on reaching final agreement with local government and schools regarding
taxation, for the project and have started capital formation activities.

Project Rosa

We are developing Project Rosa in Snyder, Texas, which
is expected to be up to 187 MW of