Soluna Holdings, IncSLNH
Soluna Holdings, Inc Segments Disclosure
Segment Information
The Company applies ASC 280, Segment Reporting, in determining its reportable segments. The Company has adopted ASU) 2023-07, Segment Reporting (Topic 280): Improvement to Reportable Segment Disclosures (ASU 2023-07), which
requires disclosure of incremental segment information on an annual and interim basis, primarily through enhanced disclosures of significant segment expenses for the year ended December 31, 2025. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i) nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory environment. The Company’s reportable segments are identified based on the types of service performed. The Company has three reportable segments: Cryptocurrency Mining, Data Center Hosting, and High-Performance Computing. In the third quarter of 2024, the Company initiated Soluna Cloud Services, a new business line to provide high performance computing services to support generative AI workstreams, but decided to exit active provision of these services during the first quarter of 2025 and will focus in the future on provision of colocation services at our datacenters to host customers in the AI generative space.
The guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM is composed of several members of its senior leadership team directed by the CEO and CFO who use revenue and cost of revenues which formulate gross profit (loss), as well as total general and administrative expenses of the reporting segments to assess the performance of the business of our reportable operating segments and allocate resources. Operating profit (loss) is used to evaluate actual results against expectations, which are based on comparable prior results, current budget, and current forecast. Non-cash items of depreciation and amortization are included within both costs of sales and general and administrative expenses, however only depreciation through the Company’s site levels are evaluated for segment performance.
In the adoption of ASU 2023-07 Segment Reporting (Topic 280): Improvement to Reportable Segment Disclosures, the most significant provision was for the Company to disclose significant segment expenses (ie: costs of revenue) that are regularly provided to the CODM. Utility costs, wages and benefit related costs, facility and equipment costs, and depreciation costs at the site level were determined to be significant segment expenses. The CODM only reviews general and administrative expenses by site level as a whole, and not by significant expenses. No operating segments have been aggregated to form the reportable segments. The Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.
The Cryptocurrency Mining segment generates revenue from the cryptocurrency the Company earns through its Bitcoin mining activities, which is currently generated from Project Dorothy, and previously from Project Sophie and Marie. The Data Center Hosting segment generated revenue from hosting services performed to third-party Bitcoin mining customers at the Company’s data centers, which were previously at Project Marie and currently from Project Sophie and Project Dorothy. The High-Performance Computing Services segment may generate revenue from either the sale or lease of HPC assets (such as Project Ada which leased GPUs), or from HPC/AI data centers to be leased to third-party HPC/AI customers. This segment began generating revenue in December 2024, as Project Ada worked to build its customer base. With the termination of the HPE Agreement, revenue was minimal for the year ended December 31, 2025, and for the year ended December 31, 2024, the Company incurred approximately $28.6 million on the loss on contract associated with the termination of the HPE Agreement .
The Company includes Demand Response revenue as a reconciling item of revenue and is not included within the three reportable segments. The Company utilizes our data centers to deliver demand response services to grid operators or utilities. Under these arrangements with a grid operator, the Company agrees to be available to ramp down a registered data center’s power consumption to a specific target level. In exchange, the grid pays the company a fee for this dispatch right, provided the Company can perform within certain parameters. The Company can be providing any type of service at the data centers whether it be Cryptocurrency Mining, Data Center Hosting, or AI to generate demand service revenue.
The following table details revenue, cost of revenues, and other operating costs for the Company’s reportable segments for years ended December 31, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:
For the year ended December 31, 2025
| Cryptocurrency Mining | Data Center Hosting | High-Performance Computing Services | Total | ||||||||||||||||||||
| Segment Revenue: Revenue from external customers | $ | 11,406 | $ | 16,998 | $ | 28 | $ | 28,432 | |||||||||||||||
| Reconciliation of revenue | |||||||||||||||||||||||
| Demand response revenue (a) | 1,285 | ||||||||||||||||||||||
| Total consolidated revenue | 29,717 | ||||||||||||||||||||||
| Less: Segment cost of revenue | |||||||||||||||||||||||
| Utility costs | 5,418 | 3,492 | — | 8,910 | |||||||||||||||||||
| Wages, benefits, and employee related costs | 873 | 2,853 | 7 | 3,733 | |||||||||||||||||||
| Facilities and Equipment costs | 862 | 2,141 | — | 3,003 | |||||||||||||||||||
| Cost of revenue- depreciation | 4,304 | 2,433 | — | 6,737 | |||||||||||||||||||
| Other cost of revenue* | 517 | 1,355 | — | 1,872 | |||||||||||||||||||
| Total segment cost of revenue | 11,974 | 12,274 | 7 | 24,255 | |||||||||||||||||||
| General and administrative expenses | 62 | 2,035 | 270 | 2,367 | |||||||||||||||||||
| Loss on contract | — | — | — | — | |||||||||||||||||||
| Impairment on fixed assets | — | 12 | — | 12 | |||||||||||||||||||
| Segment operating (loss) income | $ | (630) | $ | 2,677 | $ | (249) | $ | 1,798 | |||||||||||||||
For the year ended December 31, 2024
| Cryptocurrency Mining | Data Center Hosting | High-Performance Computing Services | Total | ||||||||||||||||||||
| Segment Revenue: Revenue from external customers | $ | 17,027 | $ | 18,838 | $ | 16 | $ | 35,881 | |||||||||||||||
| Reconciliation of revenue | |||||||||||||||||||||||
| Demand response revenue (a) | 2,140 | ||||||||||||||||||||||
| 38,021 | |||||||||||||||||||||||
| Less: Segment cost of revenue | |||||||||||||||||||||||
| Utility costs | 5,381 | 5,437 | — | 10,818 | |||||||||||||||||||
| Wages, benefits, and employee related costs | 849 | 2,087 | 6 | 2,942 | |||||||||||||||||||
| Facilities and Equipment costs | 944 | 1,406 | 5,718 | 8,068 | |||||||||||||||||||
| Cost of revenue- depreciation | 4,292 | 1,735 | — | 6,027 | |||||||||||||||||||
| Other cost of revenue* | 623 | 779 | — | 1,402 | |||||||||||||||||||
| Total segment cost of revenue | 12,089 | 11,444 | 5,724 | 29,257 | |||||||||||||||||||
| General and administrative expenses | 169 | 1,058 | 410 | 1,637 | |||||||||||||||||||
| Loss on contract | — | — | 28,593 | 28,593 | |||||||||||||||||||
| Impairment on fixed assets | 130 | — | — | 130 | |||||||||||||||||||
| Segment operating income (loss) | $ | 4,639 | $ | 6,336 | $ | (34,711) | $ | (23,736) | |||||||||||||||
(a)Demand service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
*Other cost of revenue includes Insurance, outside service costs and margins, and general costs.
The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes:
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Segment operating income (loss) | $ | 1,798 | $ | (23,736) | |||||||
| Reconciling Items: | |||||||||||
| Elimination of intercompany costs | 996 | 630 | |||||||||
| Other revenue (a) | 1,285 | 2,140 | |||||||||
| General and administrative, exclusive of depreciation and amortization (b) | (28,152) | (16,944) | |||||||||
| General and administrative, depreciation and amortization | (9,608) | (9,613) | |||||||||
| Interest expense | (4,835) | (2,527) | |||||||||
| Gain (loss) on debt extinguishment and revaluation, net | 10,658 | (1,644) | |||||||||
| Loss on sale of fixed assets and credit on equipment deposit | (1,151) | (31) | |||||||||
| Fair value adjustment loss | (23,681) | (5705) | |||||||||
| Other financing expense | (5,917) | (3,661) | |||||||||
| Other (expense) income, net | (700) | 304 | |||||||||
| Net loss before taxes | $ | (59,307) | $ | (60,787) | |||||||
(a)Demand service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss
(b)The reconciling general and administrative expense, exclusive of depreciation and amortization represent corporate and unallocated general and administrative expenses for the year.
Concentrations
During the years ended December 31, 2025 and 2024, aside from the Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool and the Company’s participation in the demand response program, two customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 34% for the year ended December 31, 2025 and two customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 39% of the Company’s total consolidated revenue for the year ended December 31, 2024.
For the year ended December 31, 2025 and 2024, approximately 100% and 100% of the Company’s cryptocurrency mining revenue was generated from Project Dorothy 1B (data center located in Silverton, Texas).
For the year ended December 31, 2025 and 2024, approximately 37% and 73% of the Company’s data center hosting revenue was generated from Project Dorothy 1A and 30% and 27% from Project Sophie, and 33% and 0% from Project Dorothy 2, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.