Digital infrastructure company Soluna Holdings reported strong first-quarter revenue growth as expanding data center operations helped offset weaker returns from cryptocurrency mining. Revenue rose 58% from a year earlier to $9.4 million and increased 2% from the previous quarter, according to the company's earnings report released Monday. The company achieved its fourth consecutive quarter of sequential revenue growth. This expansion reflects the broader pressures facing Bitcoin miners, who are increasingly diversifying into artificial intelligence and high-performance computing infrastructure as mining economics tighten following the 2024 halving.
## Q1 Financial Results
Soluna's Q1 revenue reached $9.4 million, representing 58% year-over-year growth and 2% sequential growth from the previous quarter. Despite higher revenue, the company remained unprofitable. Net loss widened to $17.9 million from $10.5 million a year earlier, primarily due to higher stock-based compensation, interest expense, and financing costs. Adjusted EBITDA loss narrowed modestly to $2.1 million. The company ended the quarter with $68.6 million in cash.
## Business Segment Performance
Data center hosting generated $6.7 million in revenue, while cryptocurrency mining contributed roughly $2.2 million, down from nearly $3 million the year before as Bitcoin mining economics deteriorated. The gains were driven by additional capacity coming online at the company's Dorothy and Kati sites in Texas.
## Industry Pivot: Miners Shift to AI Infrastructure
Soluna is participating in a broader shift among Bitcoin miners seeking new revenue streams as mining margins come under pressure. Mining economics have tightened significantly since the 2024 halving, with the recent decline in Bitcoin prices adding further strain.
A March report from CoinShares found that as many as 20% of Bitcoin miners could be operating at a loss, particularly those using older, less efficient machines. The report also noted that Bitcoin hashprice—a key measure of miner revenue—fell to a post-halving low in February.
In response, several publicly traded miners, including HIVE Digital Technologies and TeraWulf, have redirected capital toward artificial intelligence and high-performance computing. Analysts at Bernstein recently said IREN is expected to derive most of its future value from AI infrastructure rather than digital asset mining, citing IREN's growing AI cloud business and long-term agreement with Microsoft as key drivers of that transition.
Soluna continues to expand its infrastructure footprint, including plans to grow its AI and high-performance computing business.
