Soluna Holdings Announces December Site Level Financials

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) continues to demonstrate robust growth despite challenging market conditions, including an 18% drop in average BTC prices in December. The company's revenue increased monthly, contributing to a yearly cash margin run-rate of $25.65 million. The hashrate is expected to scale to 1 EH/s by March 2022, with a target of energizing 100 MW at sub 2.5 cents per kWh. Revenue for December reached $3,243K, adding to an annualized revenue of $32,068K.

Positive

• December revenue increased despite an 18% decrease in average BTC price.
• Yearly cash contribution margin run-rate at $25.65 million.
• Hashrate expected to hit 1 EH/s target by end of March 2022.
• Revenue for December reached $3,243K, contributing to annualized revenue of $32,068K.

Negative

• None.

 Hashrate Continues to Scale and Expect to Hit 1 EH/s by End of March 2022

 Expects to Release Earnings Power Illustration for 2022 on January 19^th

ALBANY, N.Y., Jan. 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- 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 December site level financials.

Michael Toporek, CEO of Soluna Holdings, stated, “We continue to deliver strong month over month performance. Despite an 18% drop in average BTC price between November and December, our December revenue continued to increase. We expect further earnings acceleration over the next few months as we march toward our target hashrate of over 1 EH/s.”

Key Summary Highlights for December 2021 and Flash Revenue:

o   December 2021 Revenue increased despite an 18% decrease in average BTC price between November ($60,621) and December ($49,263)

o   Yearly cash contribution margin run-rate at $25.65 million

o   Sophie site powered up in December to hit 25MW target

o   Hashrate continues to scale and expect to hit 1 EH/s by the end of March (+/- 30 days)

          o   Hashrate expected to scale as follows +/- 30 days

	2022					2023
	Q1	Q2	Q3	Q4		Q1
Hashrate Target (EH/s)	1.0	1.3	2.0	3.0		4.0

• • Target for 2022 is to energize 100 MW with power prices at sub 2.5 c / kWh

Revenue & Contribution Margin Summary
*all number below exclude legacy hosting
($ in 000s; Unaudited)*	Q1 2021	Q2 2021	Q3 2021	Dec 2021	Q4 2021
Revenue	$995	$1,657	$2,368	$3,243	$8,017
Contribution Margin	$744	$1,261	$1,703	$2,138	$5,524
Annualized Revenue	$3,980	$6,628	$9,472	$38,916	$32,068
Annualized Contribution Margin	$2,976	$5,044	$6,812	$25,656	$22,096

A presentation and corresponding video is available on the Company’s website at https://www.solunacomputing.com/investors/updates/januaryflash2022

About Soluna Holdings, Inc.

Soluna Holdings, Inc. (Nasdaq: SLNH) 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’s MTI Instruments division manufactures precision tools and testing equipment for electronics, aviation, automotive, power and other industries. Both Soluna and MTI Instruments use 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. 

Forward Looking Statements

The statements in this press release, including with respect to the anticipated use of proceeds for this offering, constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements reflect management’s current expectations, as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Actual results could differ materially from those expressed or implied by such forward-looking statements as a result of various factors, including, but not limited to: (1) those risk factors set forth in the Registration Statement and the prospectus supplement; and (2) other risks and uncertainties that may be detailed from time to time in SHI’s reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.

Investor Relations:

Kirin Smith, President 
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com

FAQ

What were Soluna Holdings' December revenue figures for 2021?

Soluna Holdings reported December 2021 revenue of $3,243K.

How does Soluna Holdings' revenue perform despite BTC price drops?

Despite an 18% drop in average BTC price, Soluna's revenue continued to increase in December.

What is the projected hashrate target for Soluna Holdings by March 2022?

Soluna Holdings expects to achieve a hashrate of 1 EH/s by the end of March 2022.

What is Soluna Holdings' contribution margin run-rate for 2021?

The contribution margin run-rate for Soluna Holdings is reported at $25.65 million for 2021.

What is the significance of the 100 MW target for Soluna Holdings in 2022?

Soluna aims to energize 100 MW of capacity at power prices below 2.5 cents per kWh in 2022.