Soluna Reports Q3’25 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...
37% Increase in Revenue Sequentially, Gross Profit Increased to 28%, Cash Swells to a Record $60 Million
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 third quarter ended September 30, 2025.
“This is a new Soluna,” said John Belizaire, CEO of Soluna Holdings. “What we achieved in the third quarter reflects the exceptional execution of our small but mighty team. We’ve proven that our business model works and scales, strengthened our position as a leading Bitcoin hosting provider, and attracted new, world-class capital partners.”
Belizaire continued: “We’ve also strengthened our capital structure to be more flexible and growth-oriented. With this foundation, we now have more firepower to accelerate the growth of our existing business and expand into the fast-growing AI market.”
Q3 2025 Operational and Corporate Highlights:
- $100 Million Credit Facility from Generate Capital – Soluna announced the close of a scalable credit facility up to $100 million from Generate Capital. The initial $12.6 million draw in September funded refinancing and construction of active data center projects, with additional capital support for Soluna’s 1 gigawatt and expanding pipeline.
- $20M Secured to Launch Project Kati 1 and Broke Ground – Spring Lane Capital expands its investment in Soluna to fund the first 35 MW of Project Kati, a wind-powered data center site in Texas. Construction began on September 18, 2025.
- Settlement with NYDIG – As disclosed in our Form 8-K filed September 30, 2025, Soluna reached a settlement with NYDIG, resolving all outstanding matters and clearing the path for future growth and partnership.
- Regained Nasdaq Compliance – Soluna has regained compliance with Nasdaq’s continued listing requirements, strengthening our position on the public markets, preserving access to the capital markets, and liquidity for our shareholders.
- Surpassed 4 EH/s of Hash Rate Under Management – With the commissioning of Dorothy 2 and fleet upgrades deployed across all sites, Soluna surpassed 4 EH/s of hash rate under management.
- Surpassed One Gigawatt of Clean Computing Projects – With the addition of Project Gladys (150 MW under development, wind) and Project Fei (100 MW under development, solar), Soluna’s now exceeds 1 GW of renewable-powered computing in operation, construction, and development. This milestone reflects the scalability of Soluna’s behind-the-meter model and marks a major step toward our 2.8 GW long-term roadmap.
- Expanded Partnership with Galaxy Digital – Galaxy is expected to deploy 48 MW at Project Kati 1, bringing the site’s total to 83 MW. This marks Soluna’s largest hosting deployment to date and deepens our institutional partnerships.
- Dorothy 2 Reaches Full Capacity – A 30 MW expansion with a top-tier Bitcoin miner marked the third deployment with this long-standing customer, bringing Project Dorothy 2 to full hosting capacity. Learn more about this milestone here.
- Strong Capital Formation in Q3 – Soluna strengthened its balance sheet with successful capital raises totaling approximately $64 million gross through a combination of equity raises, warrant exercises, project-level equity, and debt.
Third Quarter Finance and Operations Highlights:
- Record Level Cash Reserves Strengthen Balance Sheet – Cash increased by $45 million to $60.5 million, bolstering our reserves for future investment opportunities.
- Revenue for the three months increased by 37% or $2.3 million from Q2 2025 to Q3 2025 – driven by new Dorothy 2 customers. Other sites maintained marginal growth in hosting revenue, except for Dorothy 1B, which remained steady.
- Q3 2025 Gross profit increased to 28%, compared to 19% in Q2 2025 – reflecting strong cost discipline and margin stability, in addition to $400k in one-time electricity credits.
- Dorothy 1A and Sophie delivered strong gross margins of 43.6% and 68.4%, respectively.
- Dorothy 1B began a site-level miner fleet upgrade to help improve gross profit.
- Dorothy 2 commenced customer deployments in Q2, with labor costs ramping ahead of revenue, consistent with planned early-stage operations. Q3 saw a major increase in revenue (+$2M) from Q2.
- Net loss for the three months increased from Q3 2024 to Q3 2025 by ($17.7 million) – driven by the fair value adjustment of exercised warrants, related to July equity offering, ($22.0 million), and other financing expenses ($4.7 million), offset by the loss on SLC equipment loan and gain on NYDIG debt agreement reported as a net $10.1 million Gain on debt extinguishment and revaluation.
- Adjusted EBITDA decreased from Q3 2024 to Q3 2025 to ($6.4M) – decreased by $2.9 million from Q3 2024, due to compensation related to 2024 of $1.3 million, and approximately $1.0 million increase in professional fees in Q3 2025.
- Adjusted EBITDA increased from Q3 2024 to Q3 2025 – excluding special charges from Cloudco HPE costs, bonus, and Preferred B consent fees and broker fees - by $0.1 million to a positive adjusted EBITDA of $0.1 million, compared to Q3 2024.
- Q3 2025 capital raised over $64 million gross– from a mix of public market and project-level equity and debt sources to fund our growth, development, and operations.
Q3 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 | Soluna Digital Subtotal | ||||||||||||
|
| |||||||||||||||||
| Cryptocurrency mining revenue | $ | 2,769 | $ | - | $ | - | $ | - | $ | - | $ | 2,769 | ||||||
| Data hosting revenue | - |
| 1,650 |
| 2,203 |
| 1,404 |
| - |
| 5,257 | |||||||
| Demand response services | - |
| - |
| - |
| - |
| 389 |
| 389 | |||||||
| Total revenue | 2,769 |
| 1,650 |
| 2,203 |
| 1,404 |
| 389 |
| 8,415 | |||||||
|
|
|
|
| ||||||||||||||
| Cost of cryptocurrency mining, exclusive of depreciation | $ | 1,708 | $ | - | $ | - | $ | - | $ | - | $ | 1,708 | ||||||
| Cost of data hosting revenue, exclusive of depreciation | - |
| 669 |
| 1,558 |
| 345 |
| 88 |
| 2,660 | |||||||
| Cost of cryptocurrency mining revenue-depreciation | 1,053 |
| - |
| - |
| - |
| - |
| 1,053 | |||||||
| Cost of data hosting revenue- depreciation | - |
| 261 |
| 306 |
| 98 |
| - |
| 665 | |||||||
| Total cost of revenue | $ | 2,761 | $ | 930 | $ | 1,864 | $ | 443 | $ | 88 | $ | 6,086 | ||||||
|
|
|
|
| ||||||||||||||
| Gross Profit | $ | 8 | $ | 720 | $ | 339 | $ | 961 | $ | 301 | $ | 2,329 | ||||||
| Gross Profit Margin % | 0% |
| 44% |
| 15% |
| 68% |
| 77% |
| 28% | |||||||
Q3 2024 Revenue & Cost of Revenue by Project Site
| Soluna Digital |
| Soluna Cloud | Total | |||||||||||||||||||||
| (Dollars in thousands) | Project Dorothy 1B | Project Dorothy 1A | Project Dorothy 2 | Project Sophie | Other | Soluna Digital Subtotal | Project Ada | |||||||||||||||||
|
|
| ||||||||||||||||||||||
| Cryptocurrency mining revenue | $ | 2,811 | $ | - | $ | - | $ | - | $ | - | $ | 2,811 | $ | - | $ | 2,811 | ||||||||
| Data hosting revenue |
| - |
| 3,515 |
| - |
| 756 |
| - |
| 4,271 |
| - |
| 4,271 | ||||||||
| Demand response services |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - | ||||||||
| High-performance computing services |
| - |
| - |
| - |
| - |
| 443 |
| 443 |
| - |
| 443 | ||||||||
| Total revenue |
| 2,811 |
| 3,515 |
| - |
| 756 |
| 443 |
| 7,525 |
| - |
| 7,525 | ||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
| Cost of cryptocurrency mining, exclusive of depreciation | $ | 1,963 | $ | - | $ | - | $ | - | $ | - | $ | 1,963 | $ | - | $ | 1,963 | ||||||||
| Cost of data hosting revenue, exclusive of depreciation |
| - |
| 2,025 |
| - |
| 521 |
| 9 |
| 2,555 |
| - |
| 2,555 | ||||||||
| Cost of high-performance computing service revenue |
| - |
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