Despite a surge in revenue, Soluna Holdings, Inc. (SLNH.US) faces deepening profitability challenges, with a stark contrast between its proclaimed 6.3-gigawatt data center pipeline and actual operational capacity of just 192 megawatts.

Second-quarter financial data shows that for the three months ending June 30, Soluna generated revenue of $15.1 million, a 145% jump from $6.2 million in the same period last year. This growth was primarily driven by a new electricity cost pass-through mechanism, which added $4.4 million to both revenue and associated costs. Excluding this effect, actual revenue still grew by 73%.

However, combined gross profit plummeted 60% from the first quarter to just $766,000. Data indicates that profit pressure stems mainly from $1.5 million in maintenance costs at the recently acquired Briscoe wind farm, startup expenses for the Kati1 project, and depreciation charges incurred before facilities reached full operation.

To support operations, acquisitions, and project development, Soluna conducted substantial equity financing. As of December 31, 2025, the company had 102.5 million common shares outstanding, which rose to 225.8 million by June 30, a 120% increase. In the first half of the year, the company sold 74.2 million shares through an at-the-market offering, raising $113.5 million, and issued 10.2 million shares under a standby equity purchase agreement for $18.9 million. During the same period, cash expenditures included $11.6 million in working capital consumption and $65.1 million in investment outlays, with $51.4 million for the Briscoe wind farm and $25.3 million for the Dorothy 1A and 1B projects. Furthermore, the company sold 18.8 million ATM shares for approximately $23.6 million, bringing total outstanding shares to 244.6 million as of August 10, a 139% increase from year-end levels.

Capacity deployment progress lags significantly behind plans. As of August 1, Soluna's planned total installed capacity was about 6.3 gigawatts, but only roughly 192 megawatts (about 3%) was actually operational, sourced from three fully commissioned facilities. An additional 14 megawatts of capacity is under construction at the Kati1 project, 1.6 gigawatts is in the planning stage, and 4.5 gigawatts is under evaluation with power suppliers. The Kati2 project highlights the gap between planning and reality: a joint venture with Metrobloks plans 100 megawatts of IT infrastructure in the first phase and an additional 250 megawatts in the second phase, but none of this is included in current operational capacity. Currently, Soluna has only 192 megawatts of actual available capacity, while over 6 gigawatts remains in construction, planning, development, or evaluation stages, and outstanding shares have reached 244.6 million.