Soluna Holdings Announces July Site Level Financials

Rhea-AI Summary

Soluna Holdings, Inc. (NASDAQ: SLNH) reported its July site level financials, highlighting a 12% increase in BTC Equivalent Mined despite a 12% drop in average BTC prices. The company maintained healthy cash contribution margins of 27% in prop mining and 19% overall, despite challenges in the hosting segment. Notably, a 10MW hosting agreement at Marie is set to expire, with potential for improved margins from any subsequent contracts. CEO Michael Toporek emphasized the importance of investing for long-term value.

Positive

• 12% increase in BTC Equivalent Mined
• 27% cash contribution margins in prop mining
• 19% consolidated cash contribution margins overall
• Healthy margins despite low BTC environment

Negative

• Weaker hosting margins affecting overall profitability
• Increased fuel costs impacting cash contribution margins

ALBANY, NY, Aug. 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 July site level financials.

Michael Toporek, CEO of Soluna Holdings, stated, “Despite Bitcoin remaining around $20,000 and challenging power markets, Soluna has been able to maintain healthy margins and increase computing power. As a result of the increase in activity from renewable energy generators seeking computing as the most effective solution to their curtailment problems, we continue to believe investing through the cycle is the best opportunity to deliver value to shareholders.”

Key Summary Highlights:

Increased BTC Production Despite Volatile Market

• BTC Equivalent Mined increased by 12% despite average BTC prices decreasing by 12% from June to July. 
• Average Hashrate deployed increased by 9% with peak hashrate remaining above 1EH/s.

Cash Contribution Margins Remain Healthy

• 27% Cash contribution prop mining margins slightly offset by weaker hosting margins
• 19% Consolidated cash contribution margins overall if hosting is included despite low BTC environment
• Margins impacted by exceptional events leading to fuel cost increases at Sophie and Marie

 10MW Hosting Agreement at Marie Expires End of September

• Assessing economics of renewal or conversion to prop mining
• Anticipated hosting margins with new contract expected to increase

Revenue & Contribution Margin Summary:
A presentation and corresponding video is available on the Company’s website at: https://www.solunacomputing.com/investors/updates/july2022flash/

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. 

Contact Information
Sam Sova
VP, Marketing
Soluna Computing
sam@soluna.io
+414 699 3667

MZ Contact
Brian M. Prenoveau, CFA
MZ Group – MZ North America
SLNH@mzgroup.us
+561 489 5315

FAQ

What were the financial highlights for Soluna Holdings in July 2022?

In July 2022, Soluna Holdings reported a 12% increase in BTC Equivalent Mined and maintained cash contribution margins of 27% in prop mining.

How does Soluna Holdings' BTC mining performance compare in the volatile market?

Despite average BTC prices decreasing by 12%, Soluna increased its BTC Equivalent Mined by 12%.

What is the status of Soluna Holdings' hosting agreement at Marie?

The 10MW hosting agreement at Marie is set to expire at the end of September, with the company assessing options for renewal.

What challenges does Soluna Holdings face in the current market?

Soluna faces challenges due to weaker hosting margins and increased fuel costs affecting cash contribution margins.