Company: SLNH
Filing Date: 2025-05-22
Form Type: S-1
Source: 0001641172-25-012098
Chunk: 11

Company: Soluna Holdings, Inc
Filing Date: 2025-05-22
Form: S-1
Chunk 11
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A key strategic advantage is our model of co-locating
data centers directly with renewable power generation assets. By building behind the meter, we are able to bypass long interconnection
queues and source electricity directly from the generation site. This structure not only improves power economics, but also accelerates
time-to-market-an increasingly important factor for companies with large, time-sensitive computing workloads such as AI and HPC.

With a repeatable strategy and a growing pipeline
of projects, we are scaling a new category of digital infrastructure-one that energizes the grid, lowers computing costs, 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 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.                                                                                                                           |

| 1 |

Lines of Business

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.
Our proprietary data center operating system, MaestroOS, is used to optimize performance, manage power consumption, and increase
operational efficiency. Revenue from Bitcoin mining consists of Block Rewards and transaction fees and is recognized upon receipt in accordance
with applicable accounting guidance. Upon receipt, all digital assets are promptly converted into U.S. dollars through the Coinbase