Soluna Reports Q1’25 Results
$SLNH #SLNH--Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announce...
Q1 Revenue of $5.9 Million and 220MW of New Projects in Development
ALBANY, N.Y.: $SLNH #SLNH--Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the quarter year ended March 31, 2025.
“Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy. First quarter results reflect operational stamina amidst challenges from market headwinds, commercial model shifts, weather events, and customer deployment delays,” said John Belizaire, CEO of Soluna.
“During the first quarter of 2025, we continued construction of Project Dorothy 2, which is expected to increase our Bitcoin Hosting capacity to 123MW. We also expanded our project pipeline in South Texas to meet future demand for sustainable AI compute and Bitcoin Hosting. We believe these milestones continue to demonstrate our growth potential.”
“We are focused on the growth of our substantial pipeline of projects into AI/HPC data centers during 2025, beginning with Project Kati,” said John Tunison, CFO of Soluna.
“Additionally, in recent months, we have made substantial progress towards simplifying our capital structure, including fully converting the outstanding convertible loan notes in Q4 2024, paying off the Navitas loan at Project Dorothy 1B and securing modifications to the terms of our Series B Preferred Stock, all of which we believe has strengthened our ability to raise the growth capital needed to execute on our strategic plan,” continued John Tunison.
2025 Operational and Corporate Highlights:
- We simplified our capital structure by fully converting Convertible Loan Notes last year, significantly restructuring the Preferred B equity, and paying off the Navitas loan at Project Dorothy 1B.
- We have continued construction of Project Dorothy 2, and the initial phase of powering up that facility is underway, which is expected to increase our Bitcoin hosting capacity by 64%, reaching a total of 123 MW (with an expected completion timeline of Q4 2025).
- Soluna AL CloudCo LLC (“CloudCo” or “Project Ada”) completed a strategic termination of the HP Enterprises (“HPE”) contract – the strategic termination of the contract has enabled the Company to refocus on crypto-mining and the future development of AI data centers. Following CloudCo’s notice of termination, HPE terminated the services in April of 2025. The financial impact of the termination on Soluna’s consolidated financial statements as of and for the year ended December 31, 2024, was reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 31, 2025.
- Non-dilutive Financing Closed with Galaxy – Soluna SW LLC closed a $5 million debt facility with Galaxy Digital, secured by the assets of Project Sophie.
- Expanded Project Pipeline up to approximately 698MW in operations, construction, and development – as of today, the Company added two new projects (Hedy and Ellen) totaling 220MW. Project Kati (166MW) is now shovel-ready with capital formation underway. Project Rosa (187MW) land acquisition agreements were signed in February 2025. We now have a line of sight to 698MW of data center capacity (for AI and Bitcoin) to be in development over the next twenty-four months.
- Second Patent Awarded – Soluna’s second utility patent was awarded (Patent #: US12250794B2) in April 2025, which broadens the scope of Soluna’s Modular Data Center patent (Patent #: US11974415B2), focusing on the layout of modular data center buildings on a site.
First Quarter Financial and Operational Highlights:
- Short term Revenue Decline – Revenue declined when compared to same period in 2024, due to four factors: 1) BTC halving and subsequent hash price volatility, 2) change in commercial model mix to more Profit Sharing (fully offset in cost of revenue for no Gross Profit impact; one-time impact), 3) data center downtime related to weather and customer change out, partially offset by strong operational performance, and 4) lower Demand Response Services driven by increased participation rate within ERCOT.
- Revenue Generation Poised for Growth – Given the one-time nature of the commercial model mix shift and data center downtime, and timing of the next BTC halving, we expect Revenue to stabilize and grow as we continue to commission additional MW of Bitcoin Hosting capacity over the next 2 years related to Dorothy 2 and Kati.
- Strong Cash Balance Continues – Unrestricted cash grew to $9.2 million, a $1.4 million increase, from December 31, 2024.
- Gross Profit Declined – excluding Project Ada / CloudCo, driven by the above-mentioned Revenue drivers and partially offset by lower cost of revenue related to the shift to more Profit Share contracts, gross profit declined by $5.7 million from Q1 2024 to $1.2 million.
- Selling, General & Administrative Expenses, excluding depreciation and amortization – increased by $2.0 million from Q1 2024 to Q1 2025 driven by higher Stock Compensation Expense and Professional Fees related to the Yorkville Advisors Standby Equity Purchase Agreement and compliance.
- Net Income declined Q1 2024 to Q1 2025 by ($4.8 million) – driven by the above-mentioned Revenue, Gross Profit and SG&A drivers of a decline of $7.6 million Operating Loss, plus the Extinguishment of Convertible Loan debt and gain – +$3.6 million – on the acquisition of Cloud Notes, which was partially offset by $0.8 million combined higher Interest, Tax and Other Expenses.
- Adjusted EBITDA Declined Q1 2024 to Q1 2025 – driven by the above-mentioned Revenue, Gross Profit, and SG&A drivers, Adjusted EBITDA declined by $6.8 million to a loss of $1.6 million.
- Adjusted EBITDA Improved Q4 2024 to Q1 2025 – $0.9 million improved over Q4 2024, primarily driven by the termination of Project Ada/CloudCo HPE contract and associated mitigation of expense, and also the above-mentioned hash price and outage drivers.
Q1 2025 Revenue & Cost of Revenue by Project Site | ||||||||||||||||||||||||||||
| Digital | Cloud | Total | ||||||||||||||||||||||||||
| (Dollars in thousands) | Project Dorothy 1B | Project Dorothy 1A | Project Sophie | Other | Digital Subtotal | Project Ada | ||||||||||||||||||||||
| Cryptocurrency mining revenue | $ | 2,999 |
| $ | - |
| $ | - |
| $ | - |
| $ | 2,999 | $ | - |
| $ | 2,999 | |||||||||
| Data hosting revenue | - |
| 1,371 | 1,031 | - |
| 2,402 |
| - |
| 2,402 |
| ||||||||||||||||
| High-performance computing service revenue | - |
| - |
| - |
| 507 | 507 |
| - |
| 507 |
| |||||||||||||||
| Demand response services | - |
| - |
| - |
| - |
| - |
| 28 | 28 |
| |||||||||||||||
| Total revenue | 2,999 |
| 1,371 |
| 1,031 |
| 507 |
| 0 | 5,908 |
| 28 |
| 5,936 |
| |||||||||||||
| Cost of cryptocurrency mining, exclusive of depreciation | $ | 1,954 |
| $ | - |
| $ | - |
| $ | - |
| $ | 1,954 |
| $ | - |
| $ | 1,954 |
| |||||||
| Cost of data hosting revenue, exclusive of depreciation | - |
| 885 |
| 372 |
| 70 |
| 1,327 |
| - |
| 1,327 |
| ||||||||||||||
| Cost of high-performance computing service revenue | - |
| - |
| - |
| - |
| - |
| 7 |
| 7 |
| ||||||||||||||
| Cost of cryptocurrency mining revenue- depreciation | 1,074 |
| - |
| - |
| - |
| 1,074 |
| - |
| 1,074 |
| ||||||||||||||
| Cost of revenue- depreciation | - |
| 295 |
| 106 |
| - |
| 401 |
| - |
| 401 |
| ||||||||||||||
| Total cost of revenue | $ | 3,028 |
| $ | 1,180 |
| $ | 478 |
| $ | 70 |
| $ | 4,756 |
| $ | 7 |
| $ | 4,763 |
| |||||||
| Gross Profit | $ | (29 | ) | $ | 191 |
| $ | 553 |
| $ | 437 |
| $ | 1,152 |
| $ | 21 |
| $ | 1,173 |
| |||||||
Q1 2024 Revenue & Cost of Revenue by Project Site | ||||||||||||||||||||||||||||
| Digital | Cloud | Total | ||||||||||||||||||||||||||
| (Dollars in thousands) | Project Dorothy 1B | Project Dorothy 1A | Project Sophie | Other | Digital Subtotal | Project Ada | ||||||||||||||||||||||
| Cryptocurrency mining revenue | $ | 6,396 | $ | - |
| $ | - |
| $ | - |
| $ | 6,396 | $ | - | $ | 6,396 | |||||||||||
| Data hosting revenue | - |
| 3,542 | 1,736 | - |
| 5,278 |
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