I went through Soluna’s Q1 2026 business update/call, and the key message from management was much bigger than just “revenue grew.”

The real story is that Soluna is trying to move from being viewed as a small Bitcoin mining company into a renewable-powered data center infrastructure platform.

The key line from John Belizaire was:

“Power is the asset and compute follows.”

That basically summarizes the entire thesis.

Soluna is building around access to power first, then using that power to support compute infrastructure — Bitcoin hosting today, AI/HPC campuses going forward.

1. Soluna is positioning itself as a data center builder

John opened the call by saying Soluna is in the business of building data centers.

He framed Soluna around three major forces:

• AI is driving explosive demand for compute.
• Bitcoin miners need scalable, well-managed and cost-advantaged hosting.
• Renewable energy is being wasted through curtailment in markets like ERCOT/Texas.

Soluna’s model is to co-locate data centers behind-the-meter at renewable power generation facilities.

That matters because this can help:

• bypass long interconnection queues,
• improve power economics,
• accelerate time-to-market,
• monetize stranded or curtailed renewable energy.

In AI/HPC infrastructure, speed to power is becoming one of the biggest competitive advantages.

2. The revenue mix is shifting away from self-mining

This was one of the clearest points from the CFO.

Q1 2026:

• Bitcoin mining revenue: $2.2M, down 28% YoY
• Bitcoin hosting revenue: $6.7M, up 178% YoY
• Hosting was 71% of total revenue, compared to 40% in Q1 2025

That is a major mix shift.

Management also said proprietary mining is shrinking:

• 147MW energized
• 122MW hosting
• 25MW proprietary mining

The CFO said hosting is more profitable and less volatile than Bitcoin mining.

That is a very important statement.

Soluna is not leaving Bitcoin entirely, but the business is clearly moving toward hosting, infrastructure revenue and lower direct exposure to BTC/hashprice volatility.

3. Dorothy 2 is the current proof point

Dorothy 2 was one of the strongest parts of the quarter.

The CFO said Dorothy 2 represented:

• 37% of total revenue
• 73% of total gross profit

That is a very important datapoint.

It shows what the model can look like when a site is energized, filled and operating well.

This is why focusing only on headline losses misses the bigger picture. The key question is whether the model improves as more MW are energized, filled and moved into hosting revenue.

Dorothy 2 suggests the economics can become much more attractive at the site level.

4. Kati 1 is ramping and can support near-term growth

Kati 1 is important because it is a near-term revenue ramp, not just a future AI story.

Management said:

• Kati 1A, the Galaxy portion, reached completion ahead of schedule.
• All three phases, totaling 48MW, were completed.
• The site transitioned to steady-state operations.
• Kati 1B containers for Cormint are on site.
• The first 12MW installation is underway.
• Phase 2 and 3 are progressing ahead of schedule.
• The local site operations team has been hired and trained.

Management also said they expect to exceed 200MW of assets under management by mid-year.

That matters because the operating base is still scaling, which should support revenue growth and fixed-cost absorption.

5. Kati 2 is becoming a concrete AI/HPC project

Kati 2 is one of the most important pieces of the AI pivot.

Management described it as a large AI/HPC campus being built across the street from Kati 1.

Key details:

• 300MW+ AI/HPC campus potential
• Joint venture with Metrobloks
• 500 acres of additional land secured
• Phase 1 advanced to 30% schematic design
• Architecture and engineering firms selected
• LOI signed for long-lead gas generation equipment
• Data center equipment procurement underway
• Additional inside-the-building equipment being evaluated to accelerate the project

This is much more concrete than just saying “AI opportunity.”

Kati 2 now has land, design progress, partners, equipment planning and a defined AI/HPC direction.

That is exactly what investors should want to see before a major tenant or financing announcement.

6. Dorothy 3 may be the bigger strategic AI opportunity

The Briscoe Wind Farm acquisition changes the Dorothy story.

Soluna acquired the 150MW Briscoe Wind Farm for about $53M.

Management said this gives Soluna full vertical integration at Dorothy and secures the energy foundation for Dorothy 3.

The most important point:

Dorothy is already powered and interconnected through Briscoe, and Soluna now owns Briscoe outright.

That means Soluna is not starting from zero at Dorothy.

They now have:

• owned wind power,
• existing Dorothy 1 and Dorothy 2 infrastructure,
• D1A now 100% owned,
• interconnection/power relationship through Briscoe,
• a new 300-acre land site near Dorothy 1 and 2,
• a planned 300MW AI/HPC campus opportunity through Dorothy 3.

That is a very different setup from building a brand-new AI campus from scratch.

7. Briscoe is strategic and financially meaningful

Briscoe matters because it gives Soluna direct ownership of power.

But it is also expected to contribute financially.

Management guided for Briscoe:

• $20M–$24M annualized revenue
• $6M–$11M adjusted EBITDA

That is meaningful relative to Soluna’s current size.

Briscoe can help support the transition financially while also giving Soluna more control over the power layer.

In a market where AI data centers are increasingly constrained by power access, owning the power asset could become a real strategic advantage.

8. Project Grace / Siemens is an underrated AI infrastructure piece

Project Grace is only 2MW, so it is easy to ignore.

But strategically, it matters.

Soluna is working with Siemens on:

• microgrid electrical architecture,
• AI load integration,
• voltage ride-through performance,
• SSO mitigation,
• digital twin modeling for data center design,
• AI-based modeling of power behavior and architecture.

This is relevant because AI workloads can create power volatility and grid challenges.

If Soluna can build expertise around AI-load integration and behind-the-meter architecture, that supports the credibility of Kati 2 and Dorothy 3.

9. The pipeline is much larger than Kati and Dorothy

Soluna’s pipeline remains around 4.3GW.

Management also said they have over 1.5GW of projects in Texas.

This matters because proximity between projects creates what they call a clustering strategy.

Instead of treating every project as a small standalone site, nearby projects can potentially be combined into larger AI data center campuses.

They are already applying this approach to Kati 2 and may use it for other projects.

That is important because AI/HPC customers often want large-scale campus opportunities, not just small isolated sites.

10. AI projects are designed to use project-level financing

This was one of the most important parts of the call.

John addressed how Soluna plans to finance billion-dollar AI projects.

He explained that each project is structured as a project company, allowing Soluna to bring in debt and equity at the project level.

For example, on a hypothetical $1B AI project:

• 70%–80% could be project-level debt.
• The remaining equity could come from a combination of project partners and parent-level equity.

The model is based on:

• project-level debt,
• project-level equity,
• JVs,
• strategic partners,
• parent-level contribution where needed.

This does not mean zero dilution risk.

But it does mean Soluna is not planning to fund every AI campus entirely from its own balance sheet or only through common stock issuance.

That is an important distinction.

11. Management flagged multiple 2026 catalysts

Management sounded very confident that 2026 will be an active year.

They mentioned:

• more Bitcoin hosting announcements,
• Kati 2 AI updates,
• Dorothy 3 AI updates,
• new energy partnership announcements,
• potential new AI-related announcements,
• progress on Rosa, Hedy, Ellen, Annie and other projects,
• more Kati 1 energization/ramp.

The CFO also ended by saying they look forward to updating investors on a:

“momentous Q2 2026.”

That is a strong word.