Soluna Reports Revenue Growth, But AI Pipeline Remains Unproven
Soluna Holdings reported second-quarter revenue of $15.1 million, a 145% increase year over year. However, this growth was partially driven by an accounting change that reclassified approximately $4.4 million in electricity costs from expenses to both revenue and cost of revenue without affecting profit or loss. Excluding the adjustment, revenue still rose 73% annually but only 13% sequentially. The company's AI pivot has yet to generate significant revenue as most earnings continue to come from Bitcoin-mining customers like Blockware and Canaan. Project Dorothy 1A contributed $2.9 million in revenue with a 28% gross margin, though this was still driven by cryptocurrency hosting rather than AI leases. Soluna reported an overall pipeline of approximately 6.3 gigawatts as of August 1, including over 1.6 gigawatts dedicated to AI and high-performance computing (HPC). Projects Hedy, Ellen, and Fei are advancing under term sheets toward a combined capacity of 583 megawatts for AI/HPC use. However, these projects still require land acquisition, permits, financing, equipment, and tenant commitments before generating revenue.
Topics: accounting change AI pipeline Bitcoin mining revenue growth