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Soluna Holdings Inc. (SLNHP+1.73%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details Soluna's operations across its business lines, including Bitcoin hosting, proprietary Bitcoin mining, AI cloud and hosting services, and demand response services. The company reported cryptocurrency mining revenue of $2.8 million, data hosting revenue of $4.3 million, and demand response service revenue of $443,000 for the quarter.
Cost of cryptocurrency mining revenue was $2.0 million, while data hosting costs were $2.6 million, and high-performance computing services costs were $2.9 million. Depreciation costs associated with these operations amounted to $1.5 million.
General and administrative expenses totaled $5.2 million, an increase due to higher employee-related expenses, legal fees, and stock compensation costs. The company reported an operating loss of $9.0 million for the quarter.
Interest expense for the quarter was $821,000, related to various financing agreements. The company recorded a gain on debt extinguishment and revaluation of $1.2 million, primarily from convertible notes and warrant revaluations.
Net loss for the quarter was $8.1 million, with a net loss attributable to Soluna Holdings, Inc. of $7.2 million after accounting for non-controlling interests.
The filing outlines Soluna's expansion plans, including Project Dorothy 2 and Project Kati, and its entry into AI cloud services through a partnership with Hewlett Packard Enterprise (HPE-0.98%).
Soluna secured a $25 million Standby Equity Purchase Agreement with Yorkville Advisors to support its growth initiatives. The company also renegotiated terms with its convertible noteholders and Series B preferred stockholder to facilitate financing.
The report discusses industry trends affecting Soluna, such as Bitcoin halving, institutional interest in Bitcoin, and the growth of AI, which influence the company's strategic direction.
Soluna continues to focus on optimizing its projects, growing its pipeline, launching AI services, and securing financing opportunities to support its operations and expansion plans.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Soluna Holdings Inc. 9.0% Series A Cumulative Perpetual Preferred Stock quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.