Soluna Announces Monthly Business Update

Rhea-AI Summary

Soluna Holdings, Inc. (NASDAQ: SLNH) provides updates on its green data center projects, including AI Hosting, energy efficiency improvements, and corporate highlights. Key projects like Project Dorothy and Project Sophie show progress and strategic advancements.

Insights

Financial Analyst

Soluna Holdings, Inc.'s recent operations update provides indicators of growth and strategic positioning within the sustainable data center and Bitcoin mining industry. The 20% increase in curtailed energy consumption since December suggests a growing operational scale, which can translate into higher energy efficiency and potentially reduced operating costs in the long run. The signing of the first AI Hosting deal marks an expansion into new service areas, diversifying revenue streams and possibly increasing the company's market appeal.

The 4th Noteholder Amendment indicates a proactive approach to financial management, aiming to strengthen the balance sheet and enhance fundraising capabilities. This may be perceived positively by investors as it reflects a commitment to financial stability and strategic capital allocation. However, it's crucial to monitor the terms of such amendments, as they can affect shareholder value.

From a financial perspective, the completion of construction bids and procurement for Project Dorothy 2 before the quarter's end, along with nearing final stages of a commercial agreement for Project Kati, are critical milestones. These developments could signal future revenue growth and are likely to be closely watched by investors for their impact on future earnings and cash flow projections.

Market Research Analyst

The expansion into AI Hosting by Soluna Holdings signifies a strategic move to capitalize on the growing demand for AI computing power. This move aligns with industry trends where data center operators are increasingly offering specialized services. The transition of Project Sophie to optimization post-deployment of all customers reflects operational efficiency, which is essential for maintaining competitiveness in the data center market.

Additionally, the strategic maintenance investments to enhance power infrastructure resiliency at Project Sophie is a forward-thinking approach to reliability. As data centers are critical to continuous operations for many businesses, such improvements can be a significant competitive advantage and attract more clients seeking dependable service providers.

Investors and analysts would be interested in the company's ability to scale operations while maintaining or improving margins. The ancillary services implementation and the finalization of power purchase agreements (PPAs) will be key factors in determining the company's operational leverage and cost management effectiveness.

Energy Sector Analyst

The report on increased curtailed energy consumption by Soluna Holdings highlights the company's focus on utilizing wasted energy, a key differentiator in the sustainable energy sector. This practice not only improves environmental impact but also aligns with global trends toward renewable energy and sustainability, which could enhance the company's reputation and align with investor values focused on environmental, social and governance (ESG) criteria.

Finalizing the commercial agreement for the PPA at Project Kati is a significant step, as PPAs are instrumental in securing long-term revenue streams for energy projects. The progress with the Electric Reliability Council of Texas (ERCOT) planning and negotiations with landowners and equipment providers indicates forward momentum in project development, which is essential for timely project delivery and operational start.

Understanding the complexities of ERCOT's energy market and the implications of integrating large-scale renewable energy projects is crucial. The company's ability to navigate these regulatory and infrastructure challenges will be critical to its success and could serve as a benchmark for operational excellence within the industry.

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for Bitcoin mining and other intensive computing applications, announced its February project site-level operations, developments, and updates.

The Company has provided the following Corporate and Site Updates.

Key Company Metrics:

The monthly metrics are now available here.

Corporate Highlights:

• AI Hosting – Soluna signed its first AI Hosting deal at Project Sophie and began making necessary preparations.
• More Wasted Energy – curtailed energy consumed increased by 20% since December.
• 4th Noteholder Amendment – a new amendment was signed with the Company’s noteholders to bolster the balance sheet and increase fundraising flexibility.
• Video - CEO John Belizaire discusses Soluna's innovative approach to sustainable data centers
• AMA - The Company published responses to investor questions in its monthly AMA. View the responses here.

Key Project Updates

Project Dorothy 1A (25 MW, Hosting) / Project Dorothy 1B (25 MW, Prop-Mining):

• Optimal weather conditions allowed for a very strong month of consistent operations with lower curtailment.
• Ancillary Services being implemented smoothly by MaestroOS and the site operations teams.

Project Dorothy 2 (50 MW):

• Construction bid site visits were completed with targeted vendors and the bid process is tracking towards being completed before the end of the quarter.
• Procurement of critical long-lead power infrastructure is near completion.
• Power partner’s approval process launched.

Project Sophie (25 MW, Hosting with Profit Share):

• All customers have been fully deployed and site operations have transitioned back to optimization.
• Strategic maintenance investments were completed to add resiliency to the site’s power infrastructure.
• Improvements planned to support the new AI Hosting customer neared completion.

Project Kati (166 MW):

• Final stages of commercial agreement on the PPA is nearing completion.
• ERCOT planning continues to progress with final comments received on one key study.
• Negotiations continue with the landowners for the site lease.
• Discussion continues with critical equipment providers.

View Soluna’s Earnings Power Presentation here.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

About Soluna Holdings, Inc (SLNH)

Soluna Holdings, Inc. is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing intensive, batchable applications such as Bitcoin mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna uses technology and intentional design to solve complex, real-world challenges. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’

View source version on businesswire.com: https://www.businesswire.com/news/home/20240307075377/en/

Sam Sova

Partner and CEO

SOVA

Sam@letsgosova.com

Source: Soluna Holdings, Inc.

FAQ

What is the ticker symbol for Soluna Holdings, Inc.?

The ticker symbol for Soluna Holdings, Inc. is SLNH.

What are the key highlights of Soluna's February project updates?

Soluna provided updates on AI Hosting, increased energy efficiency, and signed a new amendment with noteholders to strengthen the balance sheet.

What are the key projects mentioned in the press release?

Key projects include Project Dorothy 1A and 1B, Project Dorothy 2, Project Sophie, and Project Kati, each with specific milestones and progress updates.

Who is the CEO of Soluna Holdings, Inc.?

The CEO of Soluna Holdings, Inc. is John Belizaire.

What is the Safe Harbor Statement in the press release?

The Safe Harbor Statement in the press release indicates that it contains forward-looking statements that are subject to risks and uncertainties.