Soluna Holdings Reports 80.5% Revenue Growth to $38 Million for 2024, Expands AI and Bitcoin Hosting Infrastructure
Soluna Holdings, Inc. (“Soluna Holdings” or the “Company”), a developer of green data centers for intensive computing applications, including Bitcoin mining and artificial intelligence (AI), has released its financial results for the fiscal year ended December 31, 2024. The results reflect significant growth and expansion in the Company’s core businesses, including Bitcoin hosting, mining, and demand response services.
Strategic Expansion and Business Growth
“Our 2024 results reflect continued momentum and strong execution across our core businesses of Bitcoin hosting, mining, and demand response services,” said John Belizaire, CEO of Soluna Holdings. “We broke ground on Project Dorothy 2, which will increase our Bitcoin Hosting capacity to 123 MW when fully ramped. We significantly expanded our project pipeline and launched our AI/HPC business to meet the growing demand for sustainable AI compute. These milestones mark a pivotal phase of growth and validate our long-term strategy to lead the next wave of clean, efficient infrastructure for Bitcoin Hosting and AI.”
As part of its ongoing strategic initiatives, Soluna Holdings made a critical decision to terminate its GPU-as-a-Service contract with Hewlett Packard Enterprise (HPE). This move, according to CFO John Tunison, was aimed at mitigating losses experienced in the second half of 2024 and refocusing efforts on the Company’s growing pipeline of AI/HPC data centers, beginning with Project Kati.
“Additionally, we have made substantial progress towards simplifying our capital structure, including reducing our Convertible Loan Notes to zero and securing modifications to the terms of our Series B Preferred Stock. These changes strengthen our ability to raise the growth capital needed to execute on our strategic plan and have resulted in positive cash flow from our core business for the first time,” continued Tunison.
Key Operational and Corporate Highlights of 2024
- Record Revenue Growth: Revenue increased by 80.5%, reaching $38.0 million, compared to $21.1 million in 2023.
- Operational Efficiency Despite Bitcoin Halving: The Company’s sites maintained high efficiency and profitability despite the scheduled Bitcoin halving in April 2024.
- Project Dorothy 1A and 1B Performance: These projects were online for the full year, generating $13.7 million and $17.0 million in Bitcoin hosting and mining revenue, respectively.
- Demand Response Services (DRS) Contribution: The new DRS business, launched in December 2023, generated $2.1 million in revenue in 2024, marking a successful new revenue stream.
- Quarterly Revenue Growth: Total revenue grew by 9.9% to $8.3 million in Q4 2024 compared to Q3 2024, driven by a higher hash price and changes in the customer mix favoring higher profitability.
- Capital Raising Success: Over $31.5 million was raised through various channels, including $2.3 million in warrant exercises and $29.2 million in debt and equity financing for Project Ada and Project Dorothy 2.
- Soluna Digital’s Profitability Surge: Achieved a quarterly gross profit of $2.6 million (31.0%) in Q4 2024, up from $1.5 million (19.9%) in Q3 2024.
- Strong Cash Position: Maintained current and restricted cash of $10.5 million at year-end, with unrestricted cash growing 23.2% to $7.8 million compared to the end of 2023.
- Capital Structure Simplification: Successfully converted all Convertible Loan Notes and restructured Series B equity to support long-term financial stability.
- Project Dorothy 2 Development: Construction began in Q3 2024, with the first phase of powering up already underway. The expansion will increase Bitcoin hosting capacity by 64%, reaching 123 MW by Q4 2025.
- Project Kati’s Progress: Successfully exited the ERCOT planning phase, unlocking potential for up to 166 MW in Bitcoin hosting and AI joint ventures.
- Project Rosa Agreements Secured: Term Sheets for power and land agreements secured in early 2025, expected to unlock up to 187 MW of new Bitcoin hosting and AI opportunities.
CEO’s Perspective
“I am honored to lead this team,” said Belizaire. “Their dedication and grit have been the driving force behind our continued momentum and success.”
Financial Strength and Future Growth
In Q4 2024, Soluna Holdings secured growth capital through a Standby Equity Purchase Agreement (SEPA). The Company filed a registration statement for the resale of common stock shares in connection with a $25 million SEPA deal with Yorkville Advisors Global L.P. The registration statement was approved by the SEC in early 2025, allowing Soluna to raise capital to pay down debt, invest in data center projects, and support working capital needs.
Strategic Shift Away from HPE GPU-as-a-Service Contract
Recognizing declining market pricing and softening demand for GPU-as-a-Service in small clusters, Soluna Holdings’ indirect subsidiary, CloudCo, terminated its contract with HPE in March 2025. The move resulted in a recorded loss of $28.6 million, covering future contract payments and the full write-down of prepaid assets. Following this decision, HPE terminated the contract for cause, effective immediately. The strategic shift allows Soluna to refocus on Bitcoin mining and AI data center development across its portfolio.
Fourth Quarter 2024 Financial Results
- Revenue Growth: Increased by 9.9% to $8.3 million in Q4 2024, up from $7.5 million in Q3 2024.
- Strong Cash Position: Ended the quarter with $10.5 million in cash and restricted cash, while unrestricted cash grew 23.2% to $7.8 million.
- Gross Profit Growth: Excluding Project Ada/Cloud, gross profit improved by $1.1 million over Q3 2024 due to higher hash prices and lower electricity costs.
- Stable SG&A Expenses: Selling, general, and administrative expenses remained relatively flat quarter over quarter and year over year, excluding a quarterly bonus adjustment.
Fiscal Year 2024 Financial Results
- Strong Revenue Performance: FY 2024 revenue reached $38.0 million, an 80.5% increase from $21.1 million in FY 2023, driven by the full-year operation of Project Dorothy 1A/1B and new DRS revenue.
- Gross Profit Growth: Excluding a $5.7 million loss from Project Ada/Cloud, gross profit increased by $9.9 million from $5.2 million in FY 2023 to $15.1 million in FY 2024.
- Consistent Gross Margins: Bitcoin Mining, Hosting, and DRS revenue growth offset Project Ada/Cloud losses, maintaining a stable gross margin of 25.0%.
- Adjusted EBITDA Improvement: Adjusted EBITDA turned positive at $0.9 million, a $4.4 million improvement from the $3.5 million loss in FY 2023, despite market challenges.
- Unrestricted Cash Growth: Increased by 23.2% from FY 2023, reaching $7.8 million.
Outlook for 2025 and Beyond
With a strong 2024 performance, Soluna Holdings is well-positioned for continued growth in 2025. The Company’s expansion into AI/HPC data centers, increased Bitcoin hosting capacity, and strategic capital management provide a foundation for long-term success. Project Dorothy 2 and Project Kati’s development, along with planned AI joint ventures, further strengthen Soluna’s position as a leader in sustainable computing infrastructure.
As market conditions evolve, Soluna remains committed to innovation, financial stability, and executing its vision of building clean and efficient data centers for the next generation of computing power.
