v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information 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): Improvements 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. 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 four reportable segments: Cryptocurrency Mining, Data Center Hosting, Wind Energy Generation which was created on April 1, 2026 in relation to the Briscoe acquisition discussed in Note 5, 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, the most significant provision was for the Company to disclose significant segment expenses (i.e.: 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 Project Kati. The Data Center Hosting segment generated revenue from hosting services provided to third-party Bitcoin mining customers at the Company’s data centers, which are currently generated from Project Sophie, Project Dorothy, and Project Kati. The Wind Energy Generation segment which was created with the Briscoe acquisition, sells power generated from owned wind turbines and also sells renewable energy credits. 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 six months ended June 30, 2025, and no revenue was generated for the three and six months ended June 30, 2026.
The Company includes demand response revenue as a reconciling item of revenue and is not included within the four reportable segments. The Company utilizes its 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 response service revenue.
The following table details revenue, cost of revenues, and other operating costs for the Company’s reportable segments for three months ended June 30, 2026 and 2025, and reconciles to net loss on the consolidated statements of operations:
For the three months ended June 30, 2026
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingWind Energy GenerationHigh- Performance Computing ServicesTotal
Segment Revenue: Revenue from external customers$1,720 $12,653 $366 $— $14,739 
Intersegment revenue (b)— — 2,153 — 2,153 
Total revenue from reportable segments1,720 12,653 2,519 — 16,892 
Briscoe Wind PPA elimination (b)(2,153)
Demand response service revenue (a)321 
Total consolidated revenue$15,060 
(a)Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
(b)    Intersegment eliminations primarily reflect the elimination of revenue recognized by Briscoe Wind Farm, LLC on electricity sales that are delivered, through regulated cooperative intermediaries acting as pass-through agents, to the Company's Dorothy data centers, and the corresponding elimination of the related power cost recognized by the data center operations, as these transfers represent intra-entity transactions following the Company's acquisition of Briscoe on April 1, 2026.
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingWind Energy GenerationHigh- Performance Computing ServicesTotal
Total revenue from reportable segments$1,720 $12,653 $2,519 $— $16,892 
Less: Segment cost of revenue
Utility costs1,042 7,236 — — 8,278 
Wages, benefits, and employee related costs180 1,014 — — 1,194 
Facilities and Equipment costs130 912 1,889 — 2,931 
Cost of revenue- depreciation and accretion expense992 1,366 1,053 — 3,411 
Other cost of revenue*76 572 364 — 1,012 
Total segment cost of revenue2,420 11,100 3,306 — 16,826 
General and administrative expenses39 1,238 53 1,330 
Segment operating (loss) income$(739)$315 $(840)$— $(1,264)
*Other cost of revenue includes insurance, outside service costs and margins, and general costs.
For the three months ended June 30, 2025
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingHigh- Performance Computing ServicesTotal
Segment Revenue: Revenue from external customers$2,861 $3,136 $— $5,997 
Total revenue from reportable segments2,861 3,136 — 5,997 
Demand response service revenue (a)161 
Total consolidated revenue$6,158 
(a)Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingHigh- Performance
Computing Services		Total
Total revenue from reportable segments$2,861 3,136 $— $5,997 
Less: Segment cost of revenue
Utility costs1,278 471 — 1,749 
Wages, benefits, and employee related costs203 531 — 734 
Facilities and Equipment costs250 521 — 771 
Cost of revenue- depreciation1,074 512 — 1,586 
Other cost of revenue*148 364 — 512 
Total segment cost of revenue2,953 2,399 — 5,352 
General and administrative expenses40 94 110 244 
Impairment on fixed assets— 12 — 12 
Segment operating (loss) income$(132)$631 $(110)$389 
*Other cost of revenue includes insurance, outside service costs and margins, and general costs.
The following table presents the reconciliation of segment operating income to net loss before taxes:
(Dollars in thousands)For the three months ended June 30,
20262025
Segment operating (loss) income $(1,264)$389 
Reconciling Items:
Elimination of intercompany costs379 382 
Other revenue (a)321 161 
General and administrative, exclusive of depreciation and amortization (b)(13,909)(5,153)
General and administrative, depreciation and amortization(2,400)(2,403)
Impairment on intangibles(70)— 
Interest expense(3,167)(1,196)
Loss on debt extinguishment and revaluation, net(4,197)— 
Other financing expense(5)(255)
Loss on sale of fixed assets and deposits on equipment, net(585)(22)
Fair value adjustment gain246 — 
Other income (loss), net1,480 (291)
Loss before income taxes$(23,171)$(8,388)
(a)Demand response 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 three months ended June 30, 2026 and 2025.
The following table details revenue, cost of revenues, and other operating costs for the Company’s reportable segments for six months ended June 30, 2026 and 2025, and reconciles to net income (loss) on the consolidated statements of operations:
For the six months ended June 30, 2026
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingWind Energy GenerationHigh- Performance Computing ServicesTotal
Segment Revenue: Revenue from external customers$3,889 $19,341 $366 $- $23,596 
Intersegment revenue (b)- - 2,153 - 2,153 
Total revenue from reportable segments3,889 19,341 2,519 - 25,749 
Briscoe Wind PPA elimination (b)(2,153)
Demand response service revenue (a)858 
Total consolidated revenue$24,454 
(a)Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
(b)    Intersegment eliminations primarily reflect the elimination of revenue recognized by Briscoe Wind Farm, LLC on electricity sales that are delivered, through regulated cooperative intermediaries acting as pass-through agents, to the Company's Dorothy data centers, and the corresponding elimination of the related power cost recognized by the data center operations, as these transfers represent intra-entity transactions following the Company's acquisition of Briscoe on April 1, 2026.
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingWind Energy GenerationHigh-
Performance
Computing
Services		Total
Total revenue from reportable segments$3,889 $19,341 $2,519 $— $25,749 
Less: Segment cost of revenue
Utility costs2,173 9,028 — — 11,201 
Wages, benefits, and employee related costs423 1,976 — — 2,399 
Facilities and Equipment costs352 1,591 1,889 — 3,832 
Cost of revenue- depreciation and accretion expense2,047 2,513 1,053 — 5,613 
Other cost of revenue*197 1,080 364 — 1,641 
Total segment cost of revenue5,192 16,188 3,306 — 24,686 
General and administrative expenses83 1,935 333 — 2,351 
Segment operating income (loss)$(1,386)$1,218 $(1,120)$— $(1,288)
*Other cost of revenue includes insurance, outside service costs and margins, and general costs.
For the six months ended June 30, 2025
(Dollars in thousands)Cryptocurrency
Mining		Data Center HostingHigh- Performance Computing ServicesTotal
Segment Revenue: Revenue from external customers$5,860 $5,538 $28 $11,426 
Total revenue from reportable segments5,860 5,538 28 11,426 
Demand response service revenue (a)668 
Total consolidated revenue$12,094 
(a)Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
(Dollars in thousands)Cryptocurrency MiningData Center HostingHigh-
Performance
Computing
Services		Total
Total revenue from reportable segments$5,860 $5,538 $28 $11,426 
Less: Segment cost of revenue
Utility costs2,690 861 — 3,551 
Wages, benefits, and employee related costs421 1,001 7 1,429 
Facilities and Equipment costs457 886 — 1,343 
Cost of revenue- depreciation2,147 913 — 3,060 
Other cost of revenue*288 508 — 796 
Total segment cost of revenue6,003 4,169 7 10,179 
General and administrative expenses55 175 269 499 
Impairment on fixed assets— 12 — 12 
Segment operating income (loss)$(198)$1,182 $(248)$736 
*Other cost of revenue includes insurance, outside service costs and margins, and general costs.
The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes:
(Dollars in thousands)For the six months ended June 30,
20262025
Segment operating (loss) income$(1,288)$736 
Reconciling Items:
Elimination of intercompany costs760 446 
Other revenue (a)858 668 
General and administrative, exclusive of depreciation and amortization (b)(29,028)(10,845)
General and administrative, depreciation and amortization(4,801)(4,807)
Impairment on intangibles(70)— 
Interest expense(4,648)(2,034)
(Loss) gain on debt extinguishment and revaluation, net(4,197)551 
Loss on sale of fixed assets and deposits on equipment(553)(22)
Fair value adjustment gain (loss)246 (118)
Other financing expense(569)(456)
Other income (expense), net1,593 (286)
Loss before income taxes$(41,697)$(16,167)
(a)Demand response 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 six months ended June 30, 2026 and 2025.
Concentrations
During the three months ended June 30, 2026 and June 30, 2025, aside from the Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool, the demand response program, and the Wind Energy Generation revenue from the Briscoe acquisition, each of four customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 67% for the three months ended June 30, 2026, and each of three customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 40% of the Company’s total consolidated revenue for the three months ended June 30, 2025.
For the three and six months ended June 30, 2026 and 2025, the majority of the Company’s cryptocurrency mining revenue was generated from Project Dorothy 1B (data center located in Silverton, Texas), with minimal activity for the three and six months ended June 30, 2026 at Project Kati 1.
For the three months ended June 30, 2026 and June 30, 2025, approximately 22% and 53% of the Company’s data center hosting revenue was generated from Project Dorothy 1A, 19% and 40% from Project Sophie, 38% and 7% from Project Dorothy 2, 3% and 0% from Project Dorothy 1B, and 18% and 0% from Project Kati 1, respectively.
During the six months ended June 30, 2026 and June 30, 2025, aside from the Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool, the demand response program, and the Wind Energy Generation revenue from the Briscoe acquisition, each of four customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 63% for the six months ended June 30, 2026, and each of three customers contributed more than 10% of the Company’s total consolidated revenue constituting approximately 37% of the Company’s total consolidated revenue for the six months ended June 30, 2025.
For the six months ended June 30, 2026 and June 30, 2025, approximately 25% and 55% of the Company’s data center hosting revenue was generated from Project Dorothy 1A, 19% and 41% from Project Sophie, 41% and 4% from Project Dorothy 2, 2% and 0% from Project Dorothy 1B, and 13% and 0% from Project Kati 1, respectively.