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ALBANY, N.Y. - On Monday, Soluna Holdings, Inc. (NASDAQ:SLNH) reported third-quarter results that showed significant sequential revenue growth and improved profitability, despite posting a wider net loss due to non-cash adjustments.
The company saw its shares jump 8.38% in pre-market trading after the results.
The green data center developer reported Q3 revenue of $8.42 million, representing a 37% increase from the previous quarter, driven primarily by new customer deployments at its Dorothy 2 facility. Gross profit margin improved to 28% from 19% in the second quarter, reflecting stronger cost discipline and operational efficiency, along with $400,000 in one-time electricity credits.
The company reported a quarterly loss of -$1.14 per share, with the wider net loss primarily attributed to non-cash items including a $22 million fair value adjustment related to exercised warrants from its July equity offering.
"This is a new Soluna," said John Belizaire, CEO of Soluna Holdings. "What we achieved in the third quarter reflects the exceptional execution of our small but mighty team. We’ve proven that our business model works and scales, strengthened our position as a leading Bitcoin hosting provider, and attracted new, world-class capital partners."
The company significantly strengthened its financial position, increasing cash reserves by $45 million to a record $60.5 million. This cash infusion came from successful capital raises totaling approximately $64 million through equity raises, warrant exercises, project-level equity, and debt.
Soluna’s operational highlights included surpassing 4 EH/s of hash rate under management and exceeding one gigawatt of clean computing projects in operation, construction, and development. The company also secured a $100 million credit facility from Generate Capital and $20 million to launch its Project Kati 1 wind-powered data center in Texas.
While revenue increased sequentially, it showed a more modest year-over-year improvement from $7.53 million in Q3 2024. The company’s Dorothy 1A and Sophie projects delivered particularly strong gross margins of 43.6% and 68.4%, respectively.
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