Soluna Holdings, Inc. Announces October Site Level Financials

Rhea-AI Summary

Soluna Holdings, Inc. (NASDAQ: SLNH) released its October financials, reporting a 1% decline in Bitcoin mined and a record average hashrate of 919.7 PH/s, up 3% from September. Despite healthy cash contribution margins, these decreased due to rising power prices. However, power costs are expected to decline in December. New hosting contracts implemented in September now pass 100% of power costs to hosted customers, significantly impacting financial metrics.

Positive

• Average hashrate reached a record 919.7 PH/s, up 3% from September.
• Cash contribution margins remain healthy despite power price increases.

Negative

• Average BTC mined decreased by 1% compared to September.
• Cash contribution margins declined due to increased power prices in October.

Actively working with Regulators to bring Dorothy Online. Continue Delivering Increased Hashrate and Healthy Margins

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 Bitcoin mining and other intensive computing, today announced the release of its October site level financials.

Michael Toporek, CEO of Soluna Holdings, stated, “Soluna is actively working with regulators to bring Project Dorothy online and thereby scale the company’s operations. During this period we have taken important steps to improve our near term liquidity and increase hashrate.”

Key Summary Highlights:

• Average BTC mined declined by 1% versus September
• Operating efficiencies drive average hashrate to a new monthly record of 919.7 PH/s, previous high of 896.62 achieved in May 2022
  • Average hashrate increased 3% from September
• Cash Contribution margins remained healthy but declined from September as a result of increased power prices in October
• Power Costs Declined in November and expected to continue to decline in December

A presentation and corresponding video are available on the Company’s website here. In connection with the table below, see reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures in the appendix to the presentation available on the Company’s website.

Revenue & Contribution Margin Summary:

* all numbers below exclude legacy hosting
** New Hosting contract as of September 2022 passes 100% of power costs on to hosted customer. For the purpose of comparison to prior periods, $276 and $338 thousand in power costs were charged to the hosted customer in September and October, respectively.
($ in 000s, Unaudited)					(Estimate)
	FY 21	Q1 2022	Q2 2022	Q3 2022	October 2022
Revenue	$13,010	$9,316	$8,676	$6,372	$1,640
Cash Contribution Margin	$8,888	$5,206	$5,007	$1,194	$365
Annualized Revenue	$13,010	$37,264	$34,704	$25,490	$19,680
Annualized Contribution Margin	$8,888	$20,824	$20,028	$4,774	$4,380
Note: Represents non-GAAP financial metrics.

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.’

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/20221208006023/en/

Philip F. Patman, Jr.

Chief Financial Officer

Soluna Holdings, Inc.

ppatman@soluna.io

MZ Contact

Brian M. Prenoveau, CFA

MZ Group – MZ North America

SLNH@mzgroup.us

561 489 5315

Source: Soluna Holdings, Inc.

FAQ

What is the average hashrate reported by Soluna Holdings in October 2022?

The average hashrate reported by Soluna Holdings in October 2022 was 919.7 PH/s.

How much did Bitcoin mining decline in October 2022 for SLNH?

Bitcoin mined by Soluna Holdings declined by 1% in October 2022 compared to September.

What were the key financial metrics for Soluna Holdings in October 2022?

Key metrics include a record hashrate of 919.7 PH/s and a decline in cash contribution margins due to increased power prices.

How did power costs impact Soluna Holdings' financials in October 2022?

Power costs contributed to the decline in cash contribution margins for Soluna Holdings in October 2022.

What is the significance of the new hosting contracts for Soluna Holdings?

The new hosting contracts passed 100% of power costs to hosted customers, impacting financial comparisons.