Soluna Reports Q2’25 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...
Steady gross margin, continued improvement in Three Month Adjusted EBITDA of +$2.3 million since Q3 2024, and energized Dorothy 2
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 second quarter ended June 30, 2025.
“Second quarter results demonstrate continued Adjusted EBITDA improvement and margin strength in our operating sites. In Q2, we also welcomed our first customers into Project Dorothy 2, the expansion of our first major site in Texas. We rebuilt our capital raising toolkit, secured our first at-the-market offering issuance, and prepared for a successful equity offering in July. We expanded our partnership with Spring Lane Capital to help launch our next flagship data center, Project Kati. We are now focused on scale,” said John Belizaire, CEO of Soluna Holdings.
“We are pleased to report the fourth quarter in a row of Adjusted EBITDA growth, improving by 25.5% ($0.4M) in Q2 over the prior quarter amidst market softness in Hashprice, while maintaining a steady 19% gross margin,” said John Tunison, CFO of Soluna.
Q2 2025 Operational and Corporate Highlights:
- Project Kati Land Secured and Subsequently Closed $20M to Launch 35 MW Kati 1 – Soluna has secured land and $20M in funding from Spring Lane Capital to begin construction on Kati 1, the first 35 MW phase of our 166 MW wind-powered data center. Construction is expected to begin in Q3, with initial energization targeted for early 2026.
- Expanded Hosting Deployments with Key Customers – Increased deployments of existing partners Blockware, Compass Mining, and other Top-tier Miners, as Dorothy 1 space became available and Dorothy 2 came online, deepening relationships with some of the industry’s most established miners.
- Project Dorothy 2 Construction On Track – All three building phases progressing on schedule, with full energization anticipated in Q4.
- 295 MW of New Projects Launched in Q2, Including Our First Solar-Powered Data Center – Including wind-powered Projects Hedy and Ellen, and solar-powered Project Annie. We believe these additions mark a major step in scaling Renewable Computing and diversifying our energy mix across Texas.
- Increased Power Pipeline to 2.8 GW of Long-Term Capacity – With 2.8 GW of long-term clean energy capacity in our pipeline, Soluna anticipates that it will be positioned to meet the rising demand for sustainable computing infrastructure at scale.
Second Quarter Finance and Operations Highlights:
- Net loss for the three months declined Q2 2024 to Q2 2025 by ($1.4 million) – driven by the above-mentioned Revenue, Gross Profit and SG&A drivers with a $2.9 million increase in Operating Loss, increased by $1.3 million combined higher Interest, Tax and Other Expenses which include consent fees to Preferred B holder and Kati wind farm loss generation fee offset by the prior year loss on convertible debt and warrant revaluation for $5.6 million.
- Adjusted EBITDA improved $0.4 million from Q1 2025 to Q2 2025, primarily driven by a steady 19% gross margin, controlling expenses, and no significant interconnection outages. This resilient progress was despite headwinds from average Hashprice declining by 5% to $51, dampening profit sharing.
- Adjusted EBITDA declined ($3.0 million) from Q2 2024 to Q2 2025, driven primarily by Bitcoin halving in April 2024 and Hashprice volatility ($0.6M) from fewer machines online and efficiency at Dorothy 1B. Professional fees were higher ($0.2M), including legal costs related to the Standby Equity Purchase Agreement and compliance costs.
In connection with our successful ATM raise and related fundraising, we incurred ($255) thousand of consent fees paid to the Series B Preferred stockholder. As part of securing land for Project Kati, we incurred ($291) thousand fees for lost power generation on the wind farm. - Gross profit for our operating sites in Soluna Digital remained steady compared to the prior quarter Q1 2025, Q2 2025 reported strong cost discipline and gross margin stability, despite a ($0.3M) decline in Demand Response Service gross profit from exiting the seasonally higher winter pricing period.
- Revenue for Q2 2025 is $6.2 million, a Net Decline of $3.5 million for the three months Year-over-year. Four factors drove the decrease. Bitcoin halving and subsequent Hashprice volatility ($2.0 million), the change in commercial model mix to more Profit Sharing (fully offset by decline in cost of revenue by ($0.8 million) for no Gross Profit impact), lower Prop Mining volume related to site availability and miner efficiency ($0.6 million), and lower Demand Response Services driven by increased participation rate within ERCOT ($0.1 million).
- Revenue Generation Poised for Growth – We expect Revenue to stabilize and grow as we continue to commission additional MW of Bitcoin Hosting capacity over the next two years, related to Dorothy 2 and Kati 1, as illustrated in the recently published 2025 Earnings Power Presentation.
- Robust Cash Reserves – Quarter-end unrestricted cash was $9.9 million, a $2.0 million rise since December 31, 2024.
- General and administrative expenses were flat year-over-year and improved from the prior quarter. Strong cost discipline has enabled these costs to be contained even as site development continues to grow substantially.
Q2 2025 Revenue & Cost of Revenue by Project Site
|
| Soluna Digital | ||||||||||||||||||||||
(Dollars in thousands) |
| Project Dorothy 1B |
| Project Dorothy 1A |
| Project Dorothy 2 |
| Project Sophie |
| Other |
| Total | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cryptocurrency mining revenue |
| $ | 2,861 |
|
| $ | - |
|
| $ | - |
|
| $ | - |
|
| $ | - |
|
| $ | 2,861 |
|
Data hosting revenue |
|
| - |
|
|
| 1,653 |
|
|
| 210 |
|
|
| 1,273 |
|
|
| - |
|
|
| 3,136 |
|
Demand response services |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 161 |
|
|
| 161 |
|
Total revenue |
|
| 2,861 |
|
|
| 1,653 |
|
|
| 210 |
|
|
| 1,273 |
|
|
| 161 |
|
|
| 6,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cost of cryptocurrency mining, exclusive of depreciation |
| $ | 1,767 |
|
| $ | - |
|
| $ | - |
|
| $ | - |
|
| $ | - |
|
| $ | 1,767 |
|
Cost of data hosting revenue, exclusive of depreciation |
|
| - |
|
|
| 851 |
|
|
| 346 |
|
|
| 420 |
|
|
| - |
|
|
| 1,617 |
|
Cost of cryptocurrency mining revenue- depreciation |
|
| 1,074 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,074 |
|
Cost of data hosting revenue- depreciation |
|
| - |
|
|
| 274 |
|
|
| 136 |
|
|
| 102 |
|
|
| - |
|
|
| 512 |
|
Total cost of revenue |
|
| 2,841 |
|
|
| 1,125 |
|
|
| 482 |
|
|
| 522 |
|
|
| - |
|
|
| 4,970 |
|
Gross profit |
| $ | 20 |
|
| $ | 528 |
|
| $ | (272 | ) | $ | 751 |
|
| $ | 161 |
|
| $ | 1,188 |
| |
Gross Profit Margin % |
|
| 0.7 | % |
|
| 31.9 | % |
|
| (129.5 | %) |
|
| 59.0 | % |
|
| 100.0 | % |
|
| 19.3 | % |
Q2 2024 Revenue & Cost of Revenue by Project Site
| Soluna Digital | ||||||||||||||||||||||||
| (Dollars in thousands) | Project Dorothy 1B | Project Dorothy 1A | Project Dorothy 2 | Project Sophie | Other | Total | ||||||||||||||||||
| Cryptocurrency mining revenue | $ | 4,484 |
| $ | - |
| $ | - | $ | - |
| $ | - |
| $ | 4,484 |
| |||||||
| Data hosting revenue | - |
| 3,567 |
| - | 1,331 |
| - |
| 4,898 |
| |||||||||||||
| Demand response services | - |
| - |
| - | - |
| 293 |
| 293 |
| |||||||||||||
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