Soluna Holdings reported a 58% year-over-year revenue increase for Q1 2026, with total revenue reaching $9.394 million as data-center hosting growth offset weaker Bitcoin mining activity. The results show a clear strategic pivot toward AI and high-performance computing workloads, even as the company’s net loss widened.
The revenue mix changed materially. Hosting generated $6.688 million, up from $2.402 million a year earlier, while cryptocurrency mining revenue fell to $2.169 million from $2.999 million in Q1 2025.
Hosting Becomes the Core Growth Driver
Soluna recorded its fourth consecutive quarter of sequential revenue growth, supported by stronger hosting demand across its data-center projects. The shift indicates a move away from direct exposure to Bitcoin mining economics and toward contracted infrastructure services.
Project-level performance supported that transition. Dorothy 1A generated $779,000 in gross profit, Dorothy 2 added $1.405 million and Sophie contributed $452,000, showing positive contribution from hosting-oriented sites.
Bitcoin mining remained under pressure. Dorothy 1B posted a $349,000 gross loss tied to mining operations, with Soluna pointing to hashprice compression as the main drag on profitability.
That contrast explains the strategic logic. Hosting revenue is tied more directly to compute demand and contracted capacity, while mining revenue remains exposed to Bitcoin price, network difficulty and hashprice volatility.
AI Buildout Raises Cost Base
Despite stronger revenue, Soluna’s net loss widened to $17.902 million from $7.354 million a year earlier. The loss reflects the cost of scaling AI and HPC capacity before those investments fully translate into margin expansion.
Equity-based compensation rose sharply to $10.222 million, while general and administrative expenses more than doubled. Financing costs also increased, adding pressure to near-term profitability and cash-flow management.
The key question is whether hosting margins can grow fast enough to absorb the higher corporate cost base. Soluna’s operating model now depends on turning AI/HPC capacity into durable, higher-margin contracts.
The company’s repositioning reduces reliance on spot mining returns, but it does not remove execution risk. Power availability, customer demand, capital intensity and project delivery will determine whether hosting can become a stable earnings engine.
Soluna’s Q1 results therefore show both progress and pressure. Revenue growth confirms demand for data-center hosting, while the wider loss shows the financial strain of transitioning from Bitcoin mining to AI infrastructure.
