Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 1

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 1
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 was decommissioned in February 2023, while Project Sophie transitioned
its focus from proprietary Bitcoin mining to hosting customers’ Bitcoin mining operations in the second quarter of 2023. All 25
MW of Project Sophie now perform data hosting services. The Company has since sold all Bitcoin miners at Project Sophie and redeployed
the capital.

The
Company’s Texas site (“Project Dorothy”), located at a wind farm, holds the potential for up to 100 MW of power
generation. By June 2024, SHI had energized 50 MW of the site across two phases, Project Dorothy 1A and 1B. As of June 30, 2025, SHI
holds a 15%
Class B membership interest in Soluna DVSL ComputeCo, LLC (“DVSL”), owner of Project Dorothy 1A, and a subsidiary of SHI
holds a 100%
Class A membership interest in DVSL. SHI also holds a 51%
ownership interest in Soluna DV ComputeCo, LLC (“DVCC”), owner of Project Dorothy 1B. On July 22, 2024, the Company
closed financing for the 48 MW modular data center (the “Project Dorothy 2”). Project Dorothy 2 is financed by Soluna2
SLC Fund II Project Holdco LLC, an investment vehicle of Spring Lane Capital (“SLC”) and SDI. As of June 30, 2025, SDI
has 100%
Class A membership and 0%
Class B membership interest in Project Dorothy 2. 

Going
Concern and Liquidity

The
Company’s condensed consolidated financial statements as of June 30, 2025 have been prepared using generally accepted
accounting principles in the United States of America (“U.S. GAAP”) applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. As shown in the accompanying condensed
consolidated financial statements, the Company was in a net loss position, has negative working capital, and has significant
outstanding debt as of June 30, 2025. In addition, Soluna MC Borrowings, LLC 2021-1 (“Borrower”), a
subsidiary of Soluna MC, LLC (“Soluna MC”), a subsidiary of Soluna Digital, Inc. (“Soluna Digital” or
“SDI”), a subsidiary of the Company, has a litigation matter with NYDIG A