Soluna Holdings reported $9.4 million in Q1 2026 revenue, up 58% year-over-year, as the digital infrastructure company pivots toward high-performance computing and data center hosting. The earnings, released May 18, reflect the fourth consecutive quarter of sequential revenue growth. Yet the company’s net loss widened to $17.9 million from $10.5 million in the prior year, underscoring the capital-intensive nature of the transition away from Bitcoin mining.
Mining Economics Break, Data Centers Fill the Gap
Soluna’s shift mirrors a broader industry realignment triggered by Bitcoin’s 2024 halving, which cut mining rewards in half and compressed margins for operators worldwide. Data center hosting revenue surged to $6.7 million in Q1, while cryptocurrency mining revenue fell to $2.2 million from $3 million year-over-year. The company operates the Dorothy and Kati data centers in Texas, both positioned to serve AI and machine learning workloads. Per a March CoinShares report, approximately 20% of Bitcoin miners globally were operating at a loss, forcing operators to diversify revenue streams or exit.
Publicly Traded Miners Chase AI Infrastructure
Soluna is not alone in this pivot. Competitors HIVE Digital Technologies, TeraWulf, and IREN have all redirected capital toward AI-grade infrastructure. Bernstein analysis indicates that large-scale miners like IREN are expected to derive the majority of future value from artificial intelligence services rather than cryptocurrency mining. Core Scientific, another major competitor, announced plans to raise $3.3 billion in debt, signaling aggressive expansion in adjacent sectors. Microsoft’s long-term AI agreement with Soluna underscores institutional demand for compute capacity that traditional mining operations can now supply.
Losses Deepen Despite Revenue Momentum
Adjusted EBITDA loss widened to $2.1 million in Q1, despite 58% top-line growth. Soluna maintains $68.6 million in cash on hand, providing runway to fund infrastructure buildout. The company’s ability to execute on AI data center capacity expansion will determine whether hosting revenue can scale faster than mining economics deteriorate. No timeline for future capacity milestones or AI revenue projections has been disclosed.
