July 14, 2025
Dear Shareholders,
As we reflect on a transformative year for Soluna, I’m proud to share the progress we’ve made and outline our vision for 2025. Our mission remains to make renewable energy the primary power source by harnessing computing as a catalyst, and is more relevant than ever given the growth in wasted renewable energy that continues and the exponential growth in energy demand for computing applications.
With Project Dorothy 2 now energized and nearing completion in a few months, and our pipeline expanding into next-generation AI and Bitcoin infrastructure, we are entering 2025 with stronger momentum than ever and a clear path toward scalable, sustainable growth.
2024: A Year of Momentum and Maturity
In 2024, Soluna grew revenue by more than 80%, reaching a record $38 million, and achieved positive cash flow from our Bitcoin Hosting business for the first time. Our teams delivered across all strategic fronts—project development, financial optimization, operational excellence, and market alignment:
- We brought Project Dorothy 1A and 1B into full-year operations, driving $30.7 million in Bitcoin hosting and mining revenue.
- We launched our Demand Response Services (DRS), which generated $2.1 million in revenue in its inaugural year.
- We broke ground on Project Dorothy 2, a 64% capacity expansion that will bring our total Bitcoin hosting and mining capacity to 123 MW by the end of 2025.
- We simplified our capital structure, converting all Convertible Loan Notes and securing modifications to our Series B Preferred Stock, strengthening our ability to raise capital for growth.
- We added some of the industry’s top hyperscale miners as customers and deepened relationships through our “Relentless Stewardship” approach to customer success.
Strategic Shifts Position Soluna for the Future
We took bold steps to ensure our focus remained sharp and future-facing. In early 2025, we strategically exited our HPE GPU-as-a-Service contract in light of a softening market for small-scale GPU clusters. While this resulted in a one-time $28.6 million loss, it allowed us to redeploy our energy and capital toward developing dedicated AI/HPC infrastructure, an area where our expertise and assets offer a true competitive edge.
We also secured a $25 million Standby Equity Purchase Agreement (SEPA) and completed a $100 million shelf and ATM registration, which gives us flexible capital sources to reduce debt and fund future growth.
With Project Kati advancing beyond ERCOT planning to shovel-readiness and Project Rosa in early-stage development, we’ve expanded our pipeline to over 350 MW of new potential capacity tailored for Bitcoin hosting and AI joint ventures.
Looking Ahead: 2025 Priorities
We’ve entered 2025 with renewed clarity, momentum, and a laser focus on growth:
- Ramp Up Dorothy 2: With Project Dorothy 2 currently partially energized, we expect to complete its full ramp-up to its 48 MW capacity, driving revenue growth from Bitcoin Hosting.
- Launch Project Kati: We are set to begin development on Project Kati, a 166 MW site designed to support both Bitcoin and AI workloads, advancing our strategy to serve the growing demand for sustainable infrastructure across both industries.
- Unlock Project Rosa: We will finalize planning and work to secure financing for Project Rosa, a 187 MW opportunity.
- Expand Our Pipeline: We are committed to building a robust, capital-ready pipeline of high-performance data centers, currently exceeding 2.8 GW, and growing, which includes recently announced Projects Hedy, Ellen, and our first solar-powered data center, Annie. This will ensure we have the infrastructure needed to meet the increasing demand for sustainable computing solutions.
- Advance AI Project Development: We aim to forge new joint venture partnerships, starting with Project Kati, to enter the AI or HPC infrastructure market with leading data center operators and infrastructure funds.
- Strengthen Balance Sheet: We plan to implement several corporate and project-level capital formation initiatives to strengthen our balance sheet, reduce debt, and fund growth initiatives, including owning higher percentages of our operating and near-term projects, setting the stage for continued expansion.
Our Distinctives
Our reputation as a leading curtailment solutions provider continues to grow, with our brand now synonymous with innovative renewable computing solutions. Our unique behind-the-meter structure not only draws power directly from power plants but also enables demand response services and can draw from the grid, combining to optimize costs for Bitcoin mining and accelerating future infrastructure development in AI and high-performance computing (HPC).
We are an infrastructure company developing, owning, and operating state-of-the-art data centers. Our facilities, powered by our MaestroOS™, efficiently manage various operational parameters to maximize profitability and sustainability.
We deliver a strong return on invested capital. Our behind-the-meter projects are structured to use capital efficiently, generate strong cash flows, and return invested capital in 3 years or less.
Renewable energy power producers, grid operators, and computing partners choose Soluna because of our four pillars of expertise: Project Development, Energy Markets, Computing Technology, and Project Finance.
Our Commitment
As we step into 2025, our commitment to innovation, sustainability, and disciplined growth remains stronger than ever. We are confident in our strategy and uniquely positioned to lead the next wave of Renewable Computing infrastructure for Bitcoin and AI. We look forward to unlocking new opportunities, expanding our impact, and maximizing value for our shareholders.
Thank you for your continued support and belief in Soluna.
Warm regards,
John Belizaire
Chief Executive Officer
Soluna Holdings, Inc.