Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 279

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 279
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, one of our hosting customers accounted for 56% of our hosting revenue and 28% of our total revenue in 2024
and such customer terminated its contract with us during the fourth quarter of 2024. Although we were able to quickly address the loss
of this customer without a substantial impact on our revenue, there can be no assurance that if we lose a major customer in the future,
we will be able to successfully replace such customer in a timely manner, or at all, without any significant impact to our results of
operations.

We expect that the limited
number of customers will continue to account for a high percentage of our revenue for the foreseeable future. In addition, demand for
our services generated by these customers may fluctuate significantly from quarter to quarter. The concentration of our customer base
increases risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer
or the failure of a single customer to perform its obligations could have a material adverse effect on our results of operations and cash
flow. If a subset or all of our customers were to experience harm or loss due to unforeseen circumstances, it could negatively impact
their businesses. In the event that any of our customers experience a decline in their equipment usage for any reason, or decide to discontinue
the use of our facilities, we may be compelled to lower our lease prices or risk losing a significant customer. Such developments could
adversely affect our profit margins and financial position, leading to a negative impact on our revenue and operating results.

30

Failure to attract,
grow and retain a diverse and balanced customer base, including key magnet customers, could harm our business and operating results.

Our ability to attract, grow
and retain a diverse and balanced customer base, consisting of enterprises, cloud service providers, network service providers, and digital
economy customers, some of which we consider to be key magnets drawing in other customers, may affect our ability to maximize our revenues.
Dense and desirable customer concentrations within a facility enable us to better generate significant interconnection revenues, which
in turn increases our overall revenues. In the future, our ability to attract customers to our data centers will depend on a variety of
factors, including our product offerings, the presence of carriers, the overall mix of customers, the presence of key customers attracting
business through ecosystems, the data center’s operating reliability and security and our ability to effectively market our product
offerings. Our inability to develop, provide or effectively execute any of