Soluna Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $5.9 million, a decrease of 53% from $12.5 million in the same period of 2024. The company's cryptocurrency mining revenue dropped by 53% to $3.0 million, while data hosting revenue also saw a 54% decline to $2.4 million. The decrease in revenue was attributed to the Bitcoin halving event in April 2024, which reduced block rewards, and the exit of a major customer from the data hosting segment. The company recorded a net loss of $7.4 million for the quarter, compared to a loss of $2.5 million in the prior year.
In terms of operational changes, Soluna has made strategic adjustments to its business model. The company has shifted its focus from high-performance computing (HPC) services, which it has decided to exit, to enhancing its core offerings in cryptocurrency mining and data hosting. This decision follows the termination of a significant agreement with Hewlett Packard Enterprise (HPE) due to changing market conditions and a shift in customer demand. As of March 31, 2025, Soluna operated approximately 75 MW of capacity across its data centers, with an additional 48 MW under construction at Project Dorothy 2.
The company has also seen changes in its financial structure, with total debt increasing to approximately $24.0 million as of March 31, 2025, up from $21.5 million at the end of 2024. This increase is primarily due to new loans and financing arrangements, including a $5 million term loan from Galaxy Digital. Soluna has been actively pursuing financing opportunities to support its growth initiatives, including a Standby Equity Purchase Agreement (SEPA) that allows for the issuance of up to $25 million in common stock.
Looking ahead, Soluna Holdings is focused on expanding its project pipeline, which currently includes over 2.6 GW of renewable energy-powered data center developments. The company aims to enhance its operational efficiency and customer satisfaction while exploring new partnerships to support its growth in the AI and HPC markets. However, the company faces challenges, including a significant accumulated deficit of approximately $321.9 million and negative working capital of $31.8 million, raising concerns about its ability to continue as a going concern without securing additional financing.
About Soluna Holdings, Inc
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