Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 90

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 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.

44

In
2024 and into 2025, 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 partnerships with major HPC original equipment manufacturers.

    4.
    Capital
    Formation – Pursuing financing opportunities to support key growth initiatives, including Project Dorothy 2 (“D2”)
    and Project Kati.

Revenue
Sources

Bitcoin
Mining Business

We
engage in proprietary Bitcoin mining, a process that verifies transactions and secures the Bitcoin blockchain. This process involves
the use of specialized computing equipment to solve complex cryptographic algorithms. Miners compete to solve these algorithms; the first
to do so is awarded a predetermined number of newly issued Bitcoins (the “Block Reward”) and any transaction fees associated
with that block.

We
participate in one or more mining pools—collaborative networks of miners who combine computing power to improve the probability
of earning rewards. Block Rewards earned by the pool are distributed among participants based on each member’s proportional contribution.
This model helps reduce revenue volatility compared to solo mining operations.

Our
mining operations are energy-intensive and require significant computational resources. We operate data centers equipped with both proprietary
and third-party hardware and software