Soluna Holdings Announces August Site Level Financials

Rhea-AI Summary

Soluna Holdings, Inc. (NASDAQ: SLNH) reports robust performance in August amid a challenging market for Bitcoin (BTC). The company achieved a 6% increase in BTC production, with its peak hashrate maintaining over 1EH/s. Consolidated cash contribution margins remained steady at 20%, primarily driven by 26% margins from prop mining, despite high energy costs. Furthermore, Soluna has renewed a 10MW hosting agreement, expected to enhance future hosting margins. CEO Michael Toporek emphasizes a focus on energizing the new Dorothy Facility, crucial for scaling operations.

Positive

• BTC Equivalent Mined increased by 6% while BTC prices rose 4% from July to August.
• Peak hashrate remained above 1EH/s, indicating strong operational performance.
• Cash contribution margins are healthy at 20%, with prop mining margins at 26%.
• 10MW hosting agreement renewed with terms responsive to energy fluctuations, expected to improve hosting margins.

Negative

• None.

Despite Continued Low BTC Price Environment and Energy Market Volatility, Soluna Continues to Deliver Healthy Results and Remains Focused on Energizing Dorothy

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for cryptocurrency mining and other intensive computing, today announced the release of its August site level financials.

Michael Toporek, CEO of Soluna Holdings, stated, “Soluna continues to deliver healthy hashrate and margins despite low BTC prices and energy market volatility. Near term, we are focused on energizing the first 50MW of our next generation Dorothy Facility as it gets Soluna to scale. Our development pipeline continues to grow as renewable power producers continue to see computing power as their preferred curtailment solution.”

Key Summary Highlights:

• BTC Production Increases Despite Volatile Market
  • BTC Equivalent Mined increased by 6% while BTC prices increased about 4% from July to August
  • Peak hashrate remained above 1EH/s
• Cash Contribution Margins Remain Healthy
  • 20% Consolidated cash contribution margins despite low BTC environment and high energy costs
    • 26% cash contribution prop mining margins slightly offset by weaker hosting margins
• 10MW Hosting Agreement at Marie renewed with key new terms
  • Contract has been restructured to be more responsive to energy fluctuations
  • Anticipated hosting margins with new contract expected to increase

Revenue & Contribution Margin Summary:
*all numbers below exclude legacy hosting
**August & July Adj. Cash Contribution Margins Normalized to June FCA costs - See pg. 21 of presentation for details
**Excluding FCA cost adjustment July Cash Contribution Margin was $413
($ in 000s, Unaudited)							(Estimate)	(Estimate)
	FY 21	Q1 2022	April 2022	May 2022	June 2022	Q2 2022	July 2022	August 2022
Revenue	$13,010	$9,264	$3,392	$3,004	$2,280	$8,676	$2,254	$2,447
Cash Contribution Margin	$8,888	$5,206	$2,605	$1,600	$800	$5,005	$433	$413
Cash Contribution Margin (Normalized Power Costs)	$8,888	$5,206	$2,605	$1,600	$800	$5,005	$756	$877
Annualized Revenue	$13,010	$37,056	$40,705	$36,044	$27,362	$34,704	$27,043	$29,361
Annualized Contribution Margin	$8,888	$20,824	$31,262	$19,196	$9,599	$20,019	$9,076	$10,525
Note: Represents non-GAAP financial metrics.

A presentation and corresponding video is available on the Company’s website at: https://www.solunacomputing.com/investors/updates/august2022flash/

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 cryptocurrency 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.’

For more information about Soluna, please visit www.solunacomputing.com or follow us on LinkedIn at linkedin.com/solunaholdings and Twitter @SolunaHoldings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220923005251/en/

Philip F. Patman, Jr.

Chief Financial Officer

Soluna Holdings, Inc.

ppatman@soluna.io

+713 906 5705

MZ Contact

Brian M. Prenoveau, CFA

MZ Group – MZ North America

SLNH@mzgroup.us

+561 489 5315

Source: Soluna Holdings, Inc.

FAQ

What are the recent production results for Soluna Holdings (SLNH) in August?

In August, Soluna Holdings (SLNH) reported a 6% increase in BTC Equivalent Mined, while BTC prices increased by about 4%.

How did Soluna Holdings (SLNH) maintain its cash contribution margins?

Soluna Holdings (SLNH) maintained healthy cash contribution margins at 20% despite low BTC prices and high energy costs.

What is the significance of the Dorothy Facility for Soluna Holdings (SLNH)?

The Dorothy Facility is crucial for Soluna Holdings (SLNH) as it is intended to scale operations, with a focus on energizing its first 50MW.

How does Soluna Holdings (SLNH) perform in terms of operational metrics?

Soluna Holdings (SLNH) reported a peak hashrate above 1EH/s, showcasing strong operational capabilities.

What changes were made to the hosting agreement for Soluna Holdings (SLNH)?

Soluna Holdings (SLNH) renewed a 10MW hosting agreement with new terms designed to be more responsive to energy fluctuations, potentially increasing hosting margins.