Soluna Completes Dorothy 1 Vertical Integration
Revenue reached $15.1 million, up 60% sequentially, as the company booked Briscoe’s first quarter and expanded its pipeline to about 6.3 gigawatts.
Soluna Holdings (SLNH), a developer of green data centers for Bitcoin mining and AI, completed vertical integration at Project Dorothy 1 in the second quarter and expanded its development pipeline to approximately 6.3 gigawatts.
The company acquired the 150 MW Briscoe Wind Farm on April 1 for a $53.0 million base price, Spring Lane Capital’s 85.4% Class B interest in Dorothy 1A on April 15 for $16.5 million, and Navitas’ 49% interest in Dorothy 1B on May 19 for approximately $8.8 million. It now owns both generation and compute across all 50 MW of Project Dorothy 1.
Revenue grew for a fifth consecutive quarter to $15.1 million, up 60% sequentially from the first quarter and 145% year over year, or 73% excluding a presentation change. The increase was driven by Dorothy 2’s contributions, the Kati 1A ramp, and Briscoe’s first quarter under ownership, partially offset by hashprice compression. Sequential growth accelerated from 2% in the prior quarter.
Effective in the second quarter, pass-through electricity costs are presented on a gross basis in revenue and cost of revenue. The change adds $4.4 million to each line with no effect on gross profit, operating loss, or net loss. Data hosting revenue was $12.7 million, cryptocurrency mining revenue $1.7 million, wind energy generation revenue $366 thousand, and demand response service revenue $321 thousand.
Gross profit fell to $766 thousand from $1.9 million in the first quarter. The decline was primarily impacted by $1.5 million of Briscoe maintenance costs, Kati 1 ramp costs, and depreciation coming online ahead of full revenue contribution. Net loss widened to ($22.6 million) from ($17.9 million), driven primarily by a $4.2 million loss on debt extinguishment and the new Briscoe overhead and depreciation base, partially offset by lower SG&A. Adjusted EBITDA loss improved 25% to ($1.6 million) from ($2.1 million), attributed to lower legal and consulting fees after the Briscoe close, lower compensation, and continued gross-profit contribution from Dorothy 2.
Project Kati 1 completed 48 MW of construction on April 1, filled by Galaxy Digital. Site revenue grew 938% sequentially to $2.3 million, including $1.5 million from reclassification of revenue from net to gross of electricity chargebacks, and the site delivered its first positive gross profit of $82 thousand after a $262 thousand loss in its first quarter of operations. Dorothy 1A revenue grew 31% sequentially to $2.9 million on Blockware and Canaan fleet ramps, producing $795 thousand of gross profit at a 28% gross margin, the highest of any site in the portfolio.
As of August 1, 2026, Soluna operated approximately 192 MW across three fully energized sites, with an additional 14 MW under construction at Kati 1. The development pipeline includes approximately 1.6 GW in planning and development and approximately 4.5 GW in assessment with power partners.
On June 3, 2026, Soluna signed a Kati 2 AI joint venture with Metrobloks. Phase I is a 100 MW critical IT data center; Phase II adds a further 250 MW. Soluna holds all Class A interests and serves as manager. New term sheets increased capacity and redesignated power for AI workloads at Project Rosa (187 MW to 242 MW), Project Hedy (120 MW to 198 MW), Project Ellen (100 MW to 145 MW), and Project Fei (120 MW to 240 MW). Three additional sites, Hedy, Ellen, and Fei, advanced to a combined 583 MW of behind-the-meter power aimed at AI and HPC.
Chief Executive John Belizaire said the company is moving quickly to convert existing sites to AI and advance Dorothy 3, and that the Dorothy 3 campus grew to 300 megawatts. Soluna appointed Ryan Carver as Chief Development Officer on July 16, 2026.
The company ended the quarter with $113.4 million of unrestricted cash and $33.1 million of total debt. Subsequent to quarter-end, it raised approximately $23.6 million under its at-the-market program, with approximately 244,590,575 shares outstanding as of the 10-Q filing date.