📄 What This Document Is

This is a monthly business update attached to a standard 8-K filing with the SEC. Think of it as the company's public "report card" for March 2026, detailing how its projects are running, what's being built, and its future plans. It's meant to give investors a transparent, real-time look at operations.

🏢 What The Company Does

👉 In simple terms, Soluna builds "green data centers" next to renewable power sources like wind and solar farms. They use this clean, often surplus energy to run power-hungry computing tasks, primarily Bitcoin mining and, increasingly, Artificial Intelligence (AI) applications. Their goal is to turn stranded or wasted green energy into a useful product (computing power) and a revenue stream.

📊 Growth & Financial Fuel

This section highlights recent major achievements that fuel their expansion.

• Record 2025 Growth: The company reported a record year in 2025, growing its project development pipeline to over 4.3 Gigawatts (GW). That's a massive amount of potential power capacity.
• Capital Raised: It successfully raised $142 million in funding to finance this growth.
• New Auditor: Soluna appointed KPMG, LLP as its new independent accounting firm for the 2026 fiscal year, a standard corporate governance step.

🔨 Project Updates: Operating Sites

These are Soluna's active data centers, mostly focused on Bitcoin.

• Project Dorothy 1A & 1B (50 MW total): Running at full capacity. A minor transformer repair temporarily affected some units, but they are expected to be fixed in April.
• Project Dorothy 2 (48 MW): Operating strongly at full capacity with all customers.
• Project Sophie (25 MW): Also operating at full capacity. ✅

🏗️ Project Updates: Under Construction

These sites are being built and represent near-term growth.

• Project Kati 1 (83 MW): This is a major focus. Phase 1 (48 MW) is substantially complete ahead of schedule and is now starting regular operations. Construction continues on the second phase (35 MW), with equipment being installed.

🧪 Project Updates: In Development (The Future)

These are future projects, with a strong new focus on AI.

• Project Kati 2 (AI/HPC Focus): This is their flagship future AI data center. They report active discussions with big tech "hyperscalers" and cloud companies. They are also exploring adding their own solar and gas power generation on-site and have selected an engineering firm to start design work in mid-April 2026.
• Project Grace (2 MW AI/HPC): A smaller AI project finishing technical testing to ensure it meets grid stability rules.

🌱 The Pipeline: Future Growth Engine

Soluna's "pipeline" is its menu of future projects. It's growing rapidly.

• The total pipeline surpassed 4.3 GW thanks to new partnerships.
• They are finalizing power agreements for several new projects (Rosa, Ellen, Hedy).
• Key projects (Annie, Gladys, Fei) are now using a faster approval pathway to speed up development.
• They are also looking to expand their existing Dorothy campus and have signed a preliminary deal for the land.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Diversification: Actively shifting and expanding from Bitcoin into the high-demand AI infrastructure market.
• Execution: Demonstrates it can build projects ahead of schedule (Kati 1).
• Scale: A 4.3 GW pipeline represents enormous future growth potential.

⚠️ Risks:

• Execution & Capital: Building out this massive pipeline requires continuous funding and successful project execution. Any delays or cost overruns could impact plans.
• Market Competition: The AI data center space is highly competitive, with well-funded giants. Securing those "hyperscaler" customers is critical.
• Technology & Grid Dependence: Their model depends on grid regulations (like ERCOT rules), renewable energy availability, and the volatile profitability of Bitcoin mining.

🧠 The Analogy

Soluna is like a specialized chef who sets up their kitchen right next to a farmer's field. Instead of letting surplus crops (renewable energy) rot, they quickly turn them into high-value dishes (computing power for Bitcoin and AI). Now, they're adding a whole new gourmet menu (AI) and building bigger kitchens (projects) to serve more customers.

🧩 Final Takeaway

Soluna is executing its growth plan, moving from a Bitcoin-focused builder to a broader green computing infrastructure company. The key takeaway is its aggressive expansion into AI data centers (Kati 2) while simultaneously scaling its existing operations. The record pipeline shows big ambitions, but now the market will watch closely as they deliver on these complex, capital-intensive projects.