Soluna Holdings reported a 58% increase in quarterly revenue, supported by added capacity at its Dorothy and Kati sites in Texas. Data center hosting generated $6.7 million, giving the company a stronger non-mining revenue base. At the same time, cryptocurrency mining income fell to about $2.2 million, down from nearly $3 million a year earlier.
In its earnings report, the company said expanding capacity and investment in new business lines had partly offset weakness in crypto mining. The decline on the mining side was tied to lower BTC mining profitability. That shift is becoming more visible across the sector as mining economics tighten.
Hosting growth lifts revenue, but losses deepen
Higher revenue did not bring Soluna into profit for the quarter. Net loss widened from $10.5 million in the prior-year period to $17.9 million, mainly because of increased share-based compensation, interest expense, and financing costs. Adjusted EBITDA loss improved slightly, narrowing to $2.1 million.
By the end of the quarter, Soluna held $68.6 million in cash. The company said it is still increasing infrastructure investment and is pushing into AI and high-performance computing. That move fits with its broader digital infrastructure strategy and shows where miners are trying to build new revenue streams.
Post-halving pressure keeps miners searching for alternatives
After Bitcoin’s 2024 halving, mining revenue entered a weaker trend, and the recent drop in BTC prices added more pressure to miners’ income. A CoinShares report published in March said around 20% of miners using older and less efficient hardware were operating at a loss. The same report noted that hashprice, a key measure of mining profitability, fell to its lowest level in February after the halving.
Listed mining companies have started shifting capital toward AI and high-performance computing services. The article points to HIVE Digital Technologies and TeraWulf as examples of companies looking outside crypto for new growth. Bernstein also said large-scale miner IREN is expected to get most of its future revenue from AI infrastructure, with expanding AI cloud services and long-term agreements with Microsoft highlighted as major drivers.
Soluna keeps building around digital infrastructure
Soluna is known for energy-intensive data center solutions and said it is working on operating models designed to help power grids run more efficiently. That remains part of its broader focus on digital infrastructure projects. For now, data center hosting is covering part of the shortfall from mining, while the company still faces heavy cost pressure and remains in the red.