Soluna revenue grows by 58%: data centers replace crypto mining
Digital infrastructure company Soluna Holdings reported a sharp increase in revenue for the first quarter. The company managed to offset declining cryptocurrency mining revenue by expanding its data center operations. According to the report, revenue rose 58% year-over-year to 9.4 million USD. This was reported by Cointelegraph.com .
Revenue growth was driven by the commissioning of additional capacity at the Dorothy and Kati facilities in Texas. Data center hosting services generated 6.7 million USD in revenue, while Bitcoin mining accounted for 2.2 million USD. This figure is down from last year due to worsening Bitcoin mining economics.
Despite the revenue increase, Soluna is not yet profitable. The company's net loss widened to 17.9 million USD due to stock-based compensation and interest expenses. Nevertheless, EBITDA improved slightly, and the company ended the quarter with 68.6 million USD in cash to develop its infrastructure, particularly in AI and high-performance computing.
Currently, Bitcoin miners are seeking new revenue streams as profit margins have shrunk following the 2024 halving. According to a CoinShares report, up to 20% of miners could operate at a loss. Consequently, companies like HIVE Digital Technologies and TeraWulf are shifting their capital toward AI and high-performance computing technologies.
Bernstein analysts predict that major miners like IREN will derive the bulk of their future revenue from AI infrastructure rather than digital asset mining. Specifically, IREN's long-term contract with Microsoft is seen as a key driver of this strategic shift.
