8-K: Soluna grows cash, pipeline; FY25 revenue falls 22%

Soluna reported lower 2025 revenue and negative EBITDA amid Bitcoin headwinds, while raising $142M, ending with $88.8M cash, completing 48MW Dorothy 2, and advancing 83MW Kati 1 and an AI campus.

Summary

• FY 2025 revenue was $29.717M, down 21.8% from $38.021M in 2024, pressured by Bitcoin hashprice and a 20MW client exit in Dec 2024.
• Q4 2025 revenue grew 9% sequentially to $9.2M from $8.4M, but Q4 gross profit fell to $1.8M from $2.3M on lower hashprice.
• Net loss in 2025 was $56.991M (net loss attributable to Soluna Holdings, Inc. of $53.411M) versus $58.300M in 2024; basic and diluted loss per share was $2.38 on 29,048,848 weighted average shares.
• Adjusted EBITDA declined to $(13.229)M from $0.942M in 2024; EBITDA was $(38.127)M.
• Total cash ended Q4 at $88.8M, up 750% from $10.5M a year earlier; unrestricted cash was $76.0M; current ratio improved to 1.9x.
• Raised approximately $142M in 2025 via debt, SEPA, RDOs, and ATM transactions; added Generate Capital ($17M) and Galaxy Digital, LLC ($5M) as project-level financing partners; Spring Lane Capital ($30M) continued support.
• Secured a Generate Credit Facility providing up to $100M of scalable project-level capital.
• Completed and energized Project Dorothy 2 (48MW) in November 2025; it is fully marketed and contracted.
• Began construction of Kati 1 (83MW) in Q3 2025; ERCOT approved initial energization and phased commissioning in February 2026, with revenue expected as capacity ramps through H1 2026.
• Signed an MOU with Metrobloks for Kati 2 to develop an AI/HPC campus: initial 100+MW critical IT with a roadmap to 300+MW.
• Power pipeline expanded to 4.3+ GW; surpassed 1 GW of renewable-powered computing across operation, construction, and development.
• Cost of revenue fell by $5.4M to $23.259M, driven by a $5.7M saving from the HPE contract termination and ~$(2.0)M lower power costs, partially offset by $0.8M higher personnel/overhead.
• Gross profit was $6.458M in 2025 (gross margin 22% versus 25% in 2024).
• SG&A rose $11.9M year-over-year to $40.127M, driven by $5.2M stock-based comp, $4.3M people costs, $1.7M legal fees for Kati financing, and $0.7M investor relations and business development.
• Bitcoin mined fell from 274 in 2024 to 113.2 in 2025; hashprice declined 21.5% year-over-year and fell 30.8% during 2025 from $54.45 to $37.68.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a mixed update: operating metrics deteriorated with revenue down and negative Adjusted EBITDA, but liquidity, financing capacity, and project milestones (Dorothy 2 completion, Kati 1 commissioning approval) materially strengthen the growth platform.

Positives

• Liquidity strengthened: total cash rose to $88.8M (+750% YoY) and unrestricted cash to $76.0M; current ratio improved to 1.9x.
• Raised ~$142M in 2025 and added project-level financing partners (Generate Capital $17M; Galaxy Digital, LLC $5M), with Spring Lane Capital ($30M) continuing support.
• Generate Credit Facility provides up to $100M of scalable project-level capital for pipeline buildout.
• Operational expansion: Dorothy 2 (48MW) completed, energized, and fully contracted; Kati 1 (83MW) approved by ERCOT for phased commissioning.
• Strategic pivot to AI/HPC: Kati 2 MOU with Metrobloks for 100+MW initial deployment, roadmap to 300+MW.
• Power pipeline grew to 4.3+ GW; surpassed 1 GW across operated/under construction/in development sites.
• Cost discipline: cost of revenue decreased by $5.4M, aided by $5.7M HPE contract savings and ~$(2.0)M lower power costs.

Negatives

• FY 2025 revenue declined 21.8% to $29.717M; Bitcoin mined dropped to 113.2 from 274 in 2024.
• Gross margin compressed to 22% from 25% in 2024; gross profit fell to $6.458M.
• Adjusted EBITDA turned negative to $(13.229)M from $0.942M in 2024; EBITDA was $(38.127)M.
• Net loss remained large at $(56.991)M (vs. $(58.300)M in 2024).
• Q4 2025 gross profit fell sequentially to $1.8M from $2.3M despite 9% revenue growth, reflecting hashprice softness.
• Significant dilution: common shares outstanding increased from 10,607,020 at 12/31/2024 to 102,531,089 at 12/31/2025.
• Fair value adjustment loss of $23.681M and higher interest/financing expenses ($4.835M interest expense; $5.917M other financing expense) weighed on results.

Risks

• Exposure to Bitcoin hashprice volatility: hashprice declined 21.5% year-over-year and fell 30.8% during 2025 (from $54.45 to $37.68), negatively impacting revenue.
• Customer concentration/contract changes: a 20MW client exit in December 2024 and a shift to profit-sharing clients reduced baseline yields.
• Project execution and regulatory timing: Kati 1 revenue depends on successful phased commissioning approved by ERCOT in February 2026 and ramp through H1 2026.
• Forward-looking plans for AI/HPC (Kati 2) involve inherent risks and uncertainties as noted under safe harbor statements.

Future Outlook

Management expects Kati 1 (83MW) to begin generating revenue as capacity ramps through the first half of 2026 following ERCOT approval in February 2026, while advancing Kati 2 as an AI/HPC campus under an MOU with Metrobloks (initial 100+MW with a roadmap to 300+MW). Liquidity, the up-to-$100M Generate facility, and a 4.3+ GW pipeline position the company to scale digital infrastructure across Bitcoin and AI use cases.

Management Comments

• “2025 was a transformational year for Soluna. We doubled our operating capacity, grew our power pipeline to 4.3GW, added two new project-level capital partners, and launched our AI infrastructure initiative—all while building a strong balance sheet to fund our next phase of growth.” — John Belizaire, CEO
• “The completion of Dorothy 2, the commissioning of Kati 1, and our co-development partnership for Kati 2 are clear proof points of our ability to execute. We enter 2026 as Soluna 2.0 with significant momentum and a platform built to scale.” — John Belizaire, CEO
• “We raised approximately $142 million in capital, grew our total cash position by 750% to $88.8 million, and added two new project-level financing partners. While Bitcoin headwinds negatively impacted revenue, our balance sheet strengthened. Our current ratio improved to 1.9x, and we are well-capitalized to execute on our pipeline development and AI infrastructure initiatives heading into 2026.” — David Michaels, CFO

Industry Context

StockSavvy.ai notes that Bitcoin miners broadly faced hashprice compression in 2025, pressuring revenue and margins, while many diversified toward AI/HPC hosting to leverage power and siting advantages. Soluna’s behind-the-meter renewable model and pivot toward AI infrastructure align with sector moves seen among miners exploring HPC/AI workloads, though execution risk and contract visibility remain critical differentiators versus established data center peers.

Comparison to Industry Standards

• Relative to crypto-mining peers (e.g., Riot, Marathon, Hut 8, Iris Energy), a 22% gross margin under hashprice pressure is directionally consistent with sector margin compression during adverse Bitcoin economics; liquidity build through equity and project finance echoes industry practices to fund growth during downcycles.
• The planned AI/HPC campus (Kati 2) mirrors a broader industry pivot where miners seek steadier, contracted compute revenue; peers pursuing HPC/AI hosting have emphasized power cost advantages and modular buildouts to compete with traditional data center operators.
• The up-to-$100M project-level facility from Generate Capital is in line with infrastructure-style financing increasingly used by energy-adjacent compute players to scale capacity without over-reliance on corporate-level balance sheets.

Stakeholder Impact

• Shareholders: significant dilution as common shares outstanding increased from 10,607,020 (12/31/2024) to 102,531,089 (12/31/2025); improved liquidity and financing capacity may support future growth.
• Customers: completion and contracting of Dorothy 2 expands hosting capacity; Kati 1 commissioning expected to add capacity in H1 2026.
• Creditors/Financing partners: stronger cash position and new facilities reduce near-term liquidity risk and support project funding.
• Employees: expanded operations and AI/HPC initiatives imply continued investment in talent and operational scaling.
• Suppliers/Power partners: larger project pipeline (4.3+ GW) and behind-the-meter deployments suggest ongoing procurement and grid coordination.

Next Steps

• Ramp Kati 1 (83MW) through phased commissioning and begin revenue generation in H1 2026.
• Advance Kati 2 AI/HPC campus under the Metrobloks MOU (initial 100+MW, roadmap to 300+MW).
• Deploy capital from the up-to-$100M Generate facility to fund pipeline construction.
• Continue pipeline development across 4.3+ GW and execute AI infrastructure initiatives.
• Engage investors with the updated investor presentation posted March 30, 2026.

Key Dates

Recommendation

Execution on Kati 1 ramp and AI/HPC (Kati 2) could catalyze a re-rating given a materially stronger cash position and financing capacity, but FY 2025 revenue decline, negative Adjusted EBITDA, and dilution temper near-term upside. A hold stance balances improved strategic positioning against ongoing operating losses and Bitcoin-driven volatility.

Keywords

Soluna Holdings, SLNH, Bitcoin mining, AI data center, HPC, Dorothy 2, Kati 1, Kati 2, ERCOT, hashprice, Generate Capital, Galaxy Digital, Spring Lane Capital, ATM offering, SEPA, RDO, Adjusted EBITDA, cryptocurrency hosting, renewable-powered computing, behind-the-meter