SCHEDULE: Intracoastal Capital Group Discloses 9.99% Stake in Soluna Holdings

A group comprising Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC has reported a 9.99% beneficial ownership stake in Soluna Holdings, Inc. following a recent Securities Purchase Agreement.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC (the "Reporting Persons") have filed a Schedule 13G, reporting beneficial ownership of 2,997,785 shares of Soluna Holdings, Inc. common stock.
• This ownership represents approximately 9.99% of the company's common stock.
• The shares include 1,818,182 shares issuable upon exercise of Intracoastal Warrant 1 and 1,179,603 shares issuable upon exercise of Intracoastal Warrant 2, as of July 18, 2025.
• The beneficial ownership calculation is based on 18,215,531 shares outstanding as of June 12, 2025, plus 8,794,544 shares issued at the closing of the Securities Purchase Agreement (SPA), and the shares issuable from the warrants.
• Both warrants contain a blocker provision preventing exercise if it would result in beneficial ownership exceeding 9.99% of the common stock.
• Without these blocker provisions, the Reporting Persons would have been deemed to beneficially own 3,636,364 shares as of July 18, 2025, and 5,454,546 shares immediately following the SPA on July 15, 2025.
• The acquisition of these securities was not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 6

Explanation: The filing indicates a substantial passive investment by a group of investors, including an LLC, in Soluna Holdings, Inc. This suggests a degree of confidence in the company's prospects. The presence of blocker provisions in the warrants is a standard mechanism to manage ownership thresholds and is not inherently negative, but it does limit immediate upside in terms of increased stake.

Positives

• A significant institutional investor group has taken a substantial stake, potentially signaling confidence in Soluna Holdings, Inc.
• The investment includes warrants, providing potential for future capital infusion upon exercise.

Negatives

• The 9.99% blocker provision limits the immediate ability of the Reporting Persons to increase their beneficial ownership beyond this threshold without further action or changes to the warrants.

Risks

• The blocker provision in the warrants limits the Reporting Persons' ability to increase their stake above 9.99% without further negotiation or changes, which could restrict their influence or future investment flexibility.
• The value of the warrants and the underlying common stock is subject to market fluctuations and the operational performance of Soluna Holdings, Inc.

Future Outlook

NA

Industry Context

This filing indicates a significant passive investment in Soluna Holdings, Inc., a company likely involved in a sector where such equity investments are common for growth or strategic positioning. The investment by Intracoastal Capital LLC suggests a focus on companies with growth potential.

Stakeholder Impact

• Shareholders: The entry of a significant institutional investor group could be viewed positively, potentially increasing investor confidence and liquidity. The issuance of new shares and warrants as part of the SPA could lead to dilution for existing shareholders.
• Company: The capital raised through the SPA and potential future warrant exercises provides funding for the company's operations and strategic initiatives.

Next Steps

• The Reporting Persons will be responsible for timely filing of subsequent amendments to this Schedule 13G.

Key Dates

Keywords

Soluna Holdings, Inc., Schedule 13G, beneficial ownership, Mitchell P. Kopin, Daniel B. Asher, Intracoastal Capital LLC, common stock, SEC filing, institutional investment, warrants, equity stake