Soluna Reports Record 2025 Growth: Pipeline Hits 4.3GW, Raises $142 Million, and Launches AI Infrastructure
$SLNH #SLNH--Soluna Holdings, Inc. (“Soluna Holdings” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI,...
Strong Capital Formation, Expanded Operations Position Company for an Accelerated 2026 Despite Q4 Hashprice Headwinds
ALBANY, N.Y.: $SLNH #SLNH--Soluna Holdings, Inc. (“Soluna Holdings” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced financial results for the full year ended December 31, 2025.
“2025 was a transformational year for Soluna. We doubled our operating capacity, grew our power pipeline to 4.3GW, added two new project-level capital partners, and launched our AI infrastructure initiative - all while building a strong balance sheet to fund our next phase of growth,” said John Belizaire, CEO of Soluna Holdings.
“The completion of Dorothy 2, the commissioning of Kati 1, and our co-development partnership for Kati 2 are clear proof points of our ability to execute. We enter 2026 as Soluna 2.0 with significant momentum and a platform built to scale,” continued John Belizaire.
2025 Operational and Corporate Highlights:
- Surpassed 1 GW of Renewable-Powered Computing – With the addition of Projects Gladys and Fei in August, Soluna crossed 1 GW of renewable-powered computing in operation, construction, and development, a notable milestone reflecting the scalability of its behind-the-meter model.
- Dorothy 2 Completed, Powered Up, and Operational – We completed and fully energized Project Dorothy 2 (48MW) in November 2025, enhancing the profitability and operational efficiency of our operating data centers, while diversifying our customer mix and improving overall customer satisfaction. Dorothy 2 is now fully marketed and contracted.
- Construction of Kati 1 started in the third quarter of 2025 – In February 2026, we received approval from ERCOT to commence the initial energization and phased commissioning of Project Kati 1. We expect to begin generating revenue from this 83MW facility as capacity is ramped up throughout the first half of 2026.
- Kati 2 AI Development Underway - Soluna is advancing Project Kati 2 in Texas as a planned AI and HPC data center campus. In 2025, the Company signed an MOU with Metrobloks for an initial 100+ MW critical IT development, with a roadmap to expand to over 300 MW.
- Power Pipeline Grows to 4.3+ GW - The long-term power pipeline expanded to 4.3+ GW, driven by new curtailment assessments, active term sheet discussions, and launches of six new development-stage projects, positioning Soluna as a scalable infrastructure platform.
“Our 2025 financial results reflect the significant investment we made in building the foundation for long-term growth. We raised approximately $142 million in capital, grew our total cash position by 750% to $88.8 million, and added two new project-level financing partners,” said David Michaels, interim CFO of Soluna Holdings.
“While Bitcoin headwinds negatively impacted revenue, our balance sheet strengthened. Our current ratio improved to 1.9x, and we are well-capitalized to execute on our pipeline development and AI infrastructure initiatives heading into 2026,” continued David Michaels.
Fourth Quarter 2025 Financial Results
- Revenue in Q4 2025 grew sequentially from Q3 – it grew by 9% from $8.4 million to $9.2 million on volume growth from operational expansion, offset by headwinds on lower hashprice.
- Q4 2025 gross profit decreased sequentially from $2.3 million to $1.8 million – driven by a softening of hashprice due to the challenging Bitcoin environment offset, in part, by an increase in volume from completing Dorothy 2.
- Stronger liquidity position in Q4 2025 – Total cash grew $28.4 million (47%) from $60.5 million in Q3 to $88.8 million in Q4 from equity raises, further bolstering our reserves for future investment opportunities.
Fiscal Year 2025 Financial Results:
- Significant Capital Formation in 2025 – totaling ~$142 million from debt issuances, SEPA draws, RDOs, and ATM transactions. We added two new project-level financing partners: Generate Capital ($17M) and Galaxy Digital, LLC ($5M). Spring Lane Capital ($30M) continues its support of our data center projects. The Generate Credit Facility is Soluna’s largest and most strategically significant financing arrangement to date, providing up to $100M of scalable, project-level capital to fund construction across the pipeline.
- Outstanding Unrestricted Cash Growth – Unrestricted cash reached $76 million at the end of FY 2025. Total cash increased 750% from $10.5 million to $88.8 million. The significant cash infusion enabled us to expand our pipeline, optimize our current Bitcoin assets, and initiate a launch into AI.
- PP&E growth reflects project investments – Our net PP&E increased from $47.3 million to $74.8 million (+58%) in 2025, echoing the current development of our pipeline projects. For example, the energization of D2 has doubled the capacity at our Dorothy campus, and construction of Kati 1 is currently underway.
- Revenue negatively impacted by Bitcoin hashprice – 2025 Revenue declined by -21.8%, to $29.7 million, compared to $38.0 million in 2024 (~$6 million was directly related to hash price impacting prop mining; with ~$2 million indirectly related to hashprice from contract mix). Hashprice declined 30.8% in 2025, from $54.45 at the start of the year to $37.68 at the end.
- 2025 Cost of Revenue, including electricity, overhead, and depreciation, decreased by $5.4 million from $28.6 million to $23.3 million – driven by the termination of the HPE contract, which accounted for $5.7 million in year-over-year savings. Power costs decreased by approximately $2 million. These savings were partially offset by an $0.8 million increase in personnel and overhead expenses, reflecting our ongoing operational expansion.
- 2025 Gross Profit declined – The $2.9 million decline in gross profit in 2025 was primarily driven by weaker hashprice. Capacity expanded significantly following the completion of the Dorothy 2 facility. While gross margin dropped from 25% in 2024 to 22% in 2025, primarily due to a softening of hashprice in late 2025, our core operations continued to generate positive gross margins despite the hashprice environment, resulting in gross profit of $6.5 million and maintaining positive profitability throughout the year.
- SG&A Spend for Growth – SG&A increased $11.9 million year-over-year, with spending strategically directed toward future growth. The increase was driven by $5.2 million in stock-based compensation, $4.3 million in people costs, $1.7 million in legal fees related to Project Kati financing, and $0.7 million for enhancing our investor relations engagement and business development.
FY 2025 Revenue & Cost of Revenue by Project Site
|
| Soluna Digital |
| Soluna Cloud |
|
| |||||||||||||||||||
(Dollars in thousands) |
| Project Dorothy 1B |
| Project Dorothy 1A |
| Project Dorothy 2 |
| Project Sophie |
| Other |
| Soluna Digital Subtotal |
| Project Ada |
| Total | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Cryptocurrency mining revenue |
| $ | 11,406 |
|
| – |
|
| – |
|
| – |
|
| – |
|
| $ | 11,406 |
|
| – |
| $ | 11,406 |
Data hosting revenue |
|
| – |
|
| 6,176 |
|
| 5,662 |
|
| 5,160 |
|
| - |
|
|
| 16,998 |
|
| - |
|
| 16,998 |
High-performance computing services |
|
| – |
|
| – |
|
| – |
|
| – |
|
| – |
|
|
| – |
|
| 28 |
|
| 28 |
Demand response services |
|
| 561 |
|
| 579 |
|
| 145 |
|
| – |
|
| – |
|
|
| 1,285 |
|
| – |
|
| 1,285 |
Total revenue |
| $ | 11,967 |
| $ | 6,755 |
| $ | 5,807 |
| $ | 5,160 |
|
| - |
|
| $ | 29,689 |
| $ | 28 |
| $ | 29,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Cost of cryptocurrency mining, exclusive of depreciation |
| $ | 7,411 |
|
| – |
|
| – |
|
| – |
|
| – |
|
| $ | 7,411 |
|
| – |
| $ | 7,411 |
Cost of data hosting revenue, exclusive of depreciation |
|
| – |
|
| 3,064 |
|
| 3,852 |
|
| 1,629 |
|
| 559 |
|
|
| 9,104 |
|
| – |
|
| 9,104 |
Cost of high-performance computing service revenue |
|
| – |
|
| – |
|
| – |
|
| – |
|
| – |
|
|
| – |
|
| 7 |
|
| 7 |
Cost of cryptocurrency mining revenue- depreciation |
|
| 4,304 |
|
| – |
|
| – |
|
| – |
|
| – |
|
|
| 4,304 |
|
| – |
|
| 4,304 |
Cost of data hosting revenue- depreciation |
|
| – |
|
| 1,099 |
|
| 864 |
|
| 470 |
|
| – |
|
|
| 2,433 |
|
| – |
|
| 2,433 |
Total cost of revenue |
|
| 11,715 |
|
| 4,163 |
|
| 4,716 |
|
| 2,099 |
|
| 559 |
|
|
| 23,252 |
|
| 7 |
|
| 23,259 |
Gross profit (loss) |
| $ | 252 |
| $ | 2,592 |
| $ | 1,091 |
| $ | 3,061 |
| $ | (559 | ) |
| $ | 6,437 |
| $ | 21 |
| $ | 6,458 |
FY 2024 Revenue & Cost of Revenue by Project Site
|
| Soluna Digital |
| Soluna Cloud |
|
| ||||||||||||||||||
(Dollars in thousands) |
| Project Dorothy 1B |
| Project Dorothy 1A |
| Project Dorothy 2 |
| Project Sophie |
| Other |
| Soluna Digital Subtotal |
| Project Ada |
| Total | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Cryptocurrency mining revenue |
| $ | 17,027 |
|
| - |
| - |
|
| - |
|
| - |
| $ | 17,027 |
|
| - |
|
| $ | 17,027 |
Data hosting revenue |
|
| - |
|
| 13,742 |
| - |
|
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