Soluna's Revenue Plummets 45% Amid Widening Losses

TL;DR

**Soluna's bleeding cash and diluting shareholders; steer clear until they show a path to profitability.**

AI Summary

Soluna Holdings, Inc. reported a significant decline in total revenue for the six months ended June 30, 2025, falling to $12.094 million from $22.224 million in the prior year, a 45.6% decrease. This was primarily driven by a drop in cryptocurrency mining revenue to $5.860 million from $10.880 million and data hosting revenue to $5.538 million from $10.176 million. The company's net loss attributable to Soluna Holdings, Inc. widened to $14.938 million for the six months ended June 30, 2025, compared to a net loss of $16.127 million in the same period of 2024. Operating loss increased substantially to $13.802 million from $3.269 million year-over-year. Despite these losses, cash increased to $9.878 million as of June 30, 2025, from $7.843 million at December 31, 2024. The company also saw an increase in property, plant and equipment, net, to $56.521 million from $47.283 million, indicating capital investments. Long-term debt increased to $10.021 million from $7.061 million, while total liabilities rose to $62.633 million from $60.678 million. The company issued 3,340,663 shares through ATM settlements and 2,140,683 shares as restricted stock awards during the quarter, significantly increasing common stock outstanding to 19,095,863 shares from 10,647,761 shares at December 31, 2024.

Why It Matters

This filing reveals Soluna Holdings, Inc. is struggling with declining revenue across its core segments, particularly cryptocurrency mining and data hosting, which could signal a challenging competitive landscape and market conditions. For investors, the widening net loss and increased operating loss, despite a slight improvement in net loss attributable to Soluna Holdings, Inc., raise concerns about profitability and operational efficiency. The significant increase in common stock outstanding through ATM settlements and restricted stock awards suggests potential dilution for existing shareholders. Employees might face uncertainty given the company's financial performance, while customers could see impacts on service stability if financial pressures persist. The broader market, especially in the crypto mining and data hosting sectors, will watch how Soluna navigates these headwinds, as its performance reflects broader industry trends.

Risk Assessment

Risk Level: high — Soluna Holdings, Inc. exhibits a high risk level due to a substantial operating loss of $13.802 million for the six months ended June 30, 2025, a significant increase from $3.269 million in the prior year. Total revenue plummeted by 45.6% to $12.094 million from $22.224 million, indicating severe operational challenges. Furthermore, the company's accumulated deficit grew to $329.242 million as of June 30, 2025, from $314.304 million at December 31, 2024, highlighting persistent unprofitability.

Analyst Insight

Investors should exercise extreme caution and consider divesting or avoiding Soluna Holdings, Inc. stock given the significant revenue decline, widening operating losses, and ongoing shareholder dilution. Monitor future filings for any signs of a turnaround in revenue generation and a clear strategy to achieve profitability, as current trends are highly unfavorable.

Financial Highlights

revenue

$12.094M

total Debt

$10.021M

net Income

-$14.938M

cash Position

$9.878M

revenue Growth

-45.6%

Revenue Breakdown

Key Numbers

• $12.094M — Total Revenue (Decreased 45.6% from $22.224M in H1 2024 to $12.094M in H1 2025)
• $14.938M — Net Loss Attributable to Soluna Holdings, Inc. (Widened from $16.127M in H1 2024 to $14.938M in H1 2025)
• $13.802M — Operating Loss (Increased significantly from $3.269M in H1 2024 to $13.802M in H1 2025)
• $5.860M — Cryptocurrency Mining Revenue (Decreased from $10.880M in H1 2024 to $5.860M in H1 2025)
• $5.538M — Data Hosting Revenue (Decreased from $10.176M in H1 2024 to $5.538M in H1 2025)
• $9.878M — Cash (Increased from $7.843M at Dec 31, 2024 to $9.878M at June 30, 2025)
• $56.521M — Property, Plant and Equipment, net (Increased from $47.283M at Dec 31, 2024 to $56.521M at June 30, 2025)
• $10.021M — Long-term Debt (Increased from $7.061M at Dec 31, 2024 to $10.021M at June 30, 2025)
• 19,095,863 — Common Shares Outstanding (Increased from 10,647,761 at Dec 31, 2024 to 19,095,863 at June 30, 2025)
• $329.242M — Accumulated Deficit (Increased from $314.304M at Dec 31, 2024 to $329.242M at June 30, 2025)

Key Players & Entities

• Soluna Holdings, Inc. (company) — Registrant and parent company
• Nasdaq Stock Market LLC (regulator) — Exchange where SLNH and SLNHP are registered
• ERCOT (company) — Independent system operator managing Texas electric power
• $12.094 million (dollar_amount) — Total revenue for six months ended June 30, 2025
• $22.224 million (dollar_amount) — Total revenue for six months ended June 30, 2024
• $14.938 million (dollar_amount) — Net loss attributable to Soluna Holdings, Inc. for six months ended June 30, 2025
• $13.802 million (dollar_amount) — Operating loss for six months ended June 30, 2025
• $9.878 million (dollar_amount) — Cash as of June 30, 2025
• 19,095,863 (dollar_amount) — Common shares issued as of June 30, 2025
• Satoshi Nakamoto (person) — Creator of Bitcoin

FAQ

Risk Factors

• Declining Revenue and Widening Losses [high — financial]: Total revenue decreased by 45.6% to $12.094 million in H1 2025 from $22.224 million in H1 2024. The company reported a net loss of $14.938 million, an increase from $16.127 million in the prior year period, and an operating loss of $13.802 million, up from $3.269 million.
• Increased Leverage [medium — financial]: Long-term debt has increased to $10.021 million from $7.061 million as of December 31, 2024. Total liabilities also rose to $62.633 million.
• Dilution from Equity Issuances [medium — financial]: The company issued 3,340,663 shares through ATM settlements and 2,140,683 shares as restricted stock awards, leading to a substantial increase in common shares outstanding from 10,647,761 to 19,095,863.
• Cryptocurrency Market Volatility [high — market]: Revenue from cryptocurrency mining, a significant segment, has fallen by 46.1%. The company is exposed to the inherent volatility and price fluctuations of the cryptocurrency market.
• Dependence on Data Hosting Performance [medium — operational]: Data hosting revenue also saw a substantial decline of 45.6%. The company's performance is tied to the demand and operational efficiency of its data hosting services.
• Growing Accumulated Deficit [medium — financial]: The accumulated deficit increased to $329.242 million from $314.304 million, indicating a persistent trend of net losses over time.

Industry Context

The cryptocurrency mining and data hosting industries are characterized by rapid technological advancements, high capital intensity, and significant price volatility, particularly for cryptocurrencies. Competition is fierce, with companies needing to manage energy costs, hardware efficiency, and market demand effectively. Regulatory scrutiny is also a growing concern across both sectors.

Regulatory Implications

The company operates in sectors subject to evolving regulations, including those related to cryptocurrency, data privacy, and energy consumption. Changes in these regulations could impact operational costs, revenue streams, and compliance requirements.

What Investors Should Do

1. Monitor revenue trends in both cryptocurrency mining and data hosting segments for signs of stabilization or further decline.
2. Analyze the impact of increased capital expenditures on future operational efficiency and profitability.
3. Evaluate the company's strategy for managing its growing debt and the implications of significant share dilution on shareholder value.
4. Assess the company's ability to navigate market volatility in the cryptocurrency sector and competitive pressures in data hosting.

Glossary

ATM settlements

At-The-Market offerings, where a company sells its shares on a stock exchange over a period of time at prevailing market prices. (Indicates the company issued new shares to raise capital, potentially diluting existing shareholders.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income or other gains. (Shows the company's history of unprofitability, which has increased to $329.242 million.)

Property, Plant and Equipment, net

The net book value of tangible assets used in a company's operations, such as buildings, machinery, and equipment, after deducting accumulated depreciation. (An increase to $56.521 million suggests significant capital expenditures, likely for expansion or infrastructure.)

Year-Over-Year Comparison

Soluna Holdings reported a substantial 45.6% decrease in total revenue for the six months ended June 30, 2025, compared to the prior year, driven by declines in both cryptocurrency mining and data hosting segments. While the net loss narrowed slightly, the operating loss significantly widened, indicating deteriorating operational performance. The company has increased its investment in property, plant, and equipment and taken on more long-term debt, alongside a significant increase in outstanding shares due to equity issuances.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share SLNH The Nasdaq Stock Mar

Filing Documents

• form10-q.htm (10-Q) — 3426KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 4KB
• form10-q_001.jpg (GRAPHIC) — 15KB
• form10-q_002.jpg (GRAPHIC) — 72KB
• 0001641172-25-024045.txt ( ) — 13464KB
• slnh-20250630.xsd (EX-101.SCH) — 79KB
• slnh-20250630_cal.xml (EX-101.CAL) — 92KB
• slnh-20250630_def.xml (EX-101.DEF) — 441KB
• slnh-20250630_lab.xml (EX-101.LAB) — 633KB
• slnh-20250630_pre.xml (EX-101.PRE) — 539KB
• form10-q_htm.xml (XML) — 2298KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 60

OTHER INFORMATION

PART II. OTHER INFORMATION 60 Item 1.

Legal Proceedings

Legal Proceedings 60 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3. Defaults Upon Senior Securities 61 Item 4. Mine Safety Disclosures 61 Item 5. Other Information 61 Item 6. Exhibits 61

SIGNATURES

SIGNATURES 62 1 Glossary of Abbreviations and Acronyms for Selected References The following list defines various abbreviations and acronyms used throughout this Quarterly report, including Management's Discussion and Analysis of Financial Condition and Results of Operations, the Condensed Consolidated Financial Statements, the Condensed Notes to Consolidated Financial Statements and the Condensed Financial Statement Schedules. This glossary covers essential terms related to Bitcoin mining, high-performance computing, Artificial Intelligence ("AI") and related fields, providing valuable context for readers of the Form 10-Q. A number of cross-references to additional information included throughout this Quarterly Report on Form 10-Q are also utilized throughout this report, to assist readers seeking additional information related to a particular subject. Artificial Intelligence ("AI") : The simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using rules to reach approximate or definite conclusions), and self-correction. AI applications include expert systems, natural language processing, speech recognition, and machine vision. Bitcoin : A decentralized digital currency created in 2009 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a peer-to-peer network, allowing direct transactions without intermediaries. Transactions are verified by network nodes through cryptography and recorded on a publicly distributed ledger called a blockchain. Bitcoin Halving : An event occurring approximately every four years where the reward for mining new Bitcoin blocks is halved. This reduces the number of new Bitcoins generated by miners, impacting their profitability and potentially affecting Bitcoin's value. Bitcoin Halving is part of Bitcoin's deflationary monetary policy, designed to

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