Soluna Holdings Reports Strong Adjusted EBITDA and Q2’24 Results

(Graphic: Business Wire)
John Belizaire, CEO of Soluna, said, “I am honored to lead such a resilient team. This year's quarterly results show a markedly different company with many opportunities ahead. We have now successfully implemented all of our revenue diversification strategies and I am proud that the results are beginning to show and that we have achieved significant project milestones this quarter.”
Belizaire said, “Our venture into AI, the construction phase of Dorothy 2, the development of Project Kati, and the continued development of our 2 GW pipeline represents the next frontier of growth for our enterprise.”
Finance and Operational Highlights:
-
Strong Revenue – Revenue increased by
362% to in the three months ended of second quarter of 2024 compared to$9.7 million in the three months ended of second quarter of 2023.$2.1 million -
Operating loss – Operating loss significantly improved to
in the three months ended second quarter of 2024, a substantial$3.7 million 48% reduction from the operating loss in the second quarter of 2023.$7.1 million -
Strong Adjusted EBITDA – Adjusted EBITDA (non-GAAP) ramped to
compared to the second quarter of 2023 of ($1.8 million ), an increase of$2.0 million driven by strong revenue growth and cost discipline through the Bitcoin halving.$3.8 million -
Strong Cash Growth – Unrestricted cash increased
50% from the end of 2023, reaching .$9.6 million - HP Enterprise Partnership – Soluna has partnered with Hewlett Packard Enterprise to launch Soluna Cloud. By utilizing Soluna Cloud, enterprise customers can rapidly deploy AI workloads on a more sustainable and scalable platform, made possible by renewable energy, direct liquid cooling (DLC), and waste-heat recovery.
-
Signed Definitive Power Purchase Agreement with EDF Renewables – Project Kati is Soluna’s second Renewable Computing data center project in
Texas . It will be co-located at a wind facility owned by EDF Renewables and Masdar. Project Kati will be executed in two phases, with each phase delivering 83 MW of renewable energy capacity to power high-performance computing applications, including Bitcoin Hosting and AI. -
Completed Spring Demand Response Period and Began Summer Period – As part of its Demand Response Plan, Soluna has earned
for the six months ended June 2024 at Project Dorothy.$1.2 million -
Reduced Convertible Debt – Driven by strong share price momentum and trading volume, Convertible Note Holders reduced their principal balance through conversions from
at the end of the first quarter of 2024 to$7.7 million at the end of the second quarter of 2024.$5.3 million
Financial Summary:
Key financial results for the second quarter include:
-
The strong second-quarter revenue of
and the 4th consecutive quarter of positive Adjusted EBITDA showcased our resilience, reflecting only a$9.7 million 22% revenue decrease compared to the first quarter of 2024, despite the challenges posed by the Bitcoin halving in April, which drove the lower Adjusted EBITDA, as expected. The second quarter resulted in a revenue increase of362% compared to the second quarter of 2023. -
Cryptocurrency Mining Revenue increased by
compared to the second quarter of 2023 when Project Sophie switched to Data Hosting, and Project Dorothy 1B was energized in the third quarter of 2023.$3.6 million -
Data Hosting Revenue increased by approximately
– compared to the second quarter of 2023, primarily related to the energization and deployment of hosting customers at Project Dorothy 1A and Project Sophie in 2023.$3.7 million -
Adjusted EBITDA of
– Adjusted EBITDA (non-GAAP) ramped from ($1.8 million ) in the second quarter of 2023 to$2.0 million in the second quarter of 2024, an increase of$1.8 million driven by strong revenue growth and cost discipline.$3.8 million
Revenue & Cost of Revenue by Project Site |
||||||||||||||||||
Second Quarter 2024 |
||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Project Dorothy 1B | Project Dorothy 1A | Project Sophie | Project Marie | Other | Total | |||||||||||||
Cryptocurrency mining revenue | $ | 4,484 |
$ | - |
$ | - |
$ | - |
$ | - |
$ | 4,484 |
||||||
Data hosting revenue | - |
3,567 |
1,331 |
- |
- |
4,898 |
||||||||||||
Demand response services | - |
- |
- |
- |
293 |
293 |
||||||||||||
Total revenue | $ | 4,484 |
$ | 3,567 |
$ | 1,331 |
$ | - |
$ | 293 |
$ | 9,675 |
||||||
Cost of cryptocurrency mining, exclusive of depreciation | $ | 1,883 |
$ | - |
- |
- |
- |
1,883 |
||||||||||
Cost of data hosting revenue, exclusive of depreciation | - |
1,758 |
418 |
- |
- |
2,176 |
||||||||||||
Cost of revenue- depreciation | 1,073 |
282 |
151 |
- |
- |
1,506 |
||||||||||||
Total cost of revenue | $ | 2,956 |
$ | 2,040 |
$ | 569 |
$ | - |
$ | - |
$ | 5,565 |
Revenue & Cost of Revenue by Project Site |
||||||||||||||||||
Second Quarter 2023 |
||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Project Dorothy 1B | Project Dorothy 1A | Project Sophie | Project Marie | Other | Total | |||||||||||||
Cryptocurrency mining revenue | $ | - |
$ | - |
$ | 915 |
$ | - |
$ | - |
$ | 915 |
||||||
Data hosting revenue | - |
456 |
692 |
- |
5 |
1,153 |
||||||||||||
Demand response services | - |
- |
- |
- |
- |
- |
||||||||||||
Total revenue | $ | - |
$ | 456 |
$ | 1,607 |
$ | - |
$ | 5 |
$ | 2,068 |
||||||
Cost of cryptocurrency mining, exclusive of depreciation | $ | 224 |
$ | - |
936 |
- |
- |
1,160 |
||||||||||
Cost of data hosting revenue, exclusive of depreciation | - |
508 |
251 |
- |
- |
759 |
||||||||||||
Cost of revenue- depreciation | 14 |
185 |
332 |
8 |
- |
539 |
||||||||||||
Total cost of revenue | $ | 238 |
$ | 693 |
$ | 1,519 |
$ | 8 |
$ | - |
$ | 2,458 |
-
Gross Profit improved by
- as Project Sophie pivoted to Data Hosting and Project Dorothy reached full energization, costs of revenue either met or exceeded expectations, enabling strong Gross Profit (Loss) growth from ($4.5 million ) for the second quarter of 2023 to$390 thousand for the second quarter of 2024.$4.1 million
-
Gross profit for the second quarter of 2024 compared to the first quarter of 2024 decreased by
, while revenue declined by$2.8 million . This highlights the company's cost management practices and discipline.$2.9 million
-
General and administrative expenses, excluding depreciation and amortization for the second quarter of 2024 increased by approximately
in the second quarter of 2024 or$1.3 million 32% over the second quarter of 2023 - to from$5.4 million . The increase in general and administrative expenses was mainly due to employee-related expenses, legal fees, investor relations, and professional fees which are partially offset by a decrease in stock compensation expenses.$4.1 million
The unaudited financial statements are available online, here. A presentation of this Second Quarter Update can also be found online, here.
___
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
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 is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815547957/en/
John Tunison
Chief Financial Officer
Soluna Holdings, Inc.
jtunison@soluna.io
Source: Soluna Holdings, Inc.