Soluna Holdings, Inc.

What they do

Soluna develops, owns, and operates modular data centers sited directly at renewable generation assets, drawing power behind the meter from both the co-located plant and the grid through its interconnection. Operations are managed by its MaestroOS software, which optimizes power consumption using local power pricing, weather, grid demand, and market signals. It runs Bitcoin mining, third-party Bitcoin hosting, demand response, and is developing AI/HPC data center leasing through Soluna HPC, Inc. The company also acquired the 150 MW Briscoe Wind Farm, making it both generator and compute operator at its flagship Dorothy campus.

Revenue drivers

• Bitcoin / Data Center Hosting — Hosting and colocation services sold to third-party Bitcoin miners at Soluna's data centers; Project Dorothy 1A revenue grew 31% sequentially to $2.9 million in Q2 2026 at a 28% gross margin, the highest in the portfolio.
• Bitcoin Mining — Proprietary mining and joint ventures at Soluna data centers; Project Kati 1 reached 48 MW of construction and delivered its first positive gross profit of $82 thousand on site revenue of $2.3 million.
• HPC / AI Data Center Leasing — Developing AI-ready data center leasing and hosting via Soluna HPC; Project Kati 2 is a joint venture with Metrobloks targeting 100 MW of critical IT capacity in Phase I and 250 MW more in Phase II.
• Wind Energy Generation and Demand Response — Following the April 1, 2026 acquisition of the 150 MW Briscoe Wind Farm, Soluna sells power and also provides demand response services to grid operators at certain facilities.

Recent performance

Q2 2026 revenue was $15.1 million, up 145% year over year and the fifth consecutive quarter of sequential growth. Management cited first positive gross profit at Kati 1 ($82 thousand on $2.3 million of revenue) and the strongest quarter to date at Dorothy 1A ($2.9 million revenue, 28% gross margin). Effective Q2, pass-through electricity costs are presented gross in both revenue and cost of revenue, and the Kati 1 figure includes $1.5 million from that revenue reclassification. Despite the growth, full-year 2025 revenue of $29.7 million was below 2024's $38.0 million, and annual net losses have continued (2025 net loss of $53.4 million). Operating cash flow was negative $9.1 million in 2025.

Strategy

Soluna is vertically integrating generation and compute, having acquired the Briscoe Wind Farm and bought out partners' interests in Project Dorothy 1A and 1B to own all 50 MW of generation and compute there. It is converting existing sites to AI capacity and reports a development pipeline of approximately 6.3 GW as of August 1, 2026, including roughly 1.6 GW in planning and development and 4.5 GW in assessment. It operates about 192 MW across three energized sites with 14 MW under construction at Kati 1. Capital formation is a stated 2025 priority, evidenced by a $100 million Generate Capital credit facility ($17.0 million drawn through year-end 2025), a $32 million registered direct offering, $20 million from Spring Lane Capital for Kati 1, and a $250 million 2026 Standby Equity Purchase Agreement with YA II PN, LTD.

Risks

• Recurring losses and capital needs — The company has posted net losses every year on file, including $53.4 million in 2025, and states that recurring losses from operations will require additional capital.
• Dilution from equity financing — Growth has been financed primarily by issuing common stock in public offerings and debt, including the $250 million 2026 SEPA, and the company plans further similar raises.
• Existing debt burden — Management states its debt level may restrict operations and liquidity, increase vulnerability to adverse conditions, and includes a $100 million Generate Capital facility with $17.0 million drawn.
• Joint venture and partner execution — The company flags joint ventures, joint ownership, and strategic partner arrangements as posing unique challenges and no assurance it will realize expected returns or synergies.

Outlook

Management points to the operating base from Kati 1 and Dorothy 1A as the foundation for a larger AI build-out, with the pipeline described as approximately 6.3 GW as of August 1, 2026, including 583 MW of new behind-the-meter AI sites (Projects Hedy, Ellen, and Fei). It expects to convert existing sites to AI and advance Project Dorothy 3 (300 MW) and Project Kati 2 toward 350 MW under the Metrobloks joint venture. Kati 1 energization is expected to be fully completed during 2026, with hosting and/or mining revenue recognized as capacity ramps.