Company: SLNH
Filing Date: 2025-05-22
Form Type: S-1
Source: 0001641172-25-012098
Chunk: 13

Company: Soluna Holdings, Inc
Filing Date: 2025-05-22
Form: S-1
Chunk 13
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 data centers as dispatchable energy resources. In select states where we operate, our data centers are
enrolled in ancillary services programs that support grid reliability.

Under these programs, we commit to reducing a
facility’s power consumption to a predetermined level when called upon by the grid operator. In return, we receive compensation
for maintaining this dispatch capability, provided we meet specific performance criteria. For example, to qualify for compensation in
a given period-typically monthly-the data center must meet minimum uptime and availability requirements.

For the year ended December 31, 2024, our Demand
Response Business represented approximately 6% of total revenue.

Recent Developments

ATM Agreement

On April 29, 2025, we
entered into an At the Market Offering Agreement (the “ATM Agreement”) with the placement agent, pursuant to which we may
offer and sell, from time to time, through the placement agent, up to $3.75 million of shares of common stock. We will pay the placement
agent a commission of 3.0% of the aggregate gross proceeds from each sale of shares and have agreed to provide the placement agent with
customary indemnification and contribution rights.

The shares of common
stock sold under the ATM Agreement will be offered and sold pursuant to our effective shelf registration statement on Form S-3 (File
No. 333-286638) filed by us with the SEC on April 18, 2025, and declared effective by the SEC on April 29, 2025.

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, in November 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