Soluna Reveals Exciting December Progress: Significant Business Achievements and Project Developments

Dorothy and Sophie See Revenue Boost from Hashprice Spike

ALBANY, NY, December 21, 2023 – 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 applications, announced its December project site level operations as well as major project developments. 

John Belizaire, CEO of Soluna Holdings, commented, “As we transition into 2024 there is a lot of momentum at Soluna. We have hit major milestones at our current project sites and are making headway on new project developments that will showcase our highly efficient data centers. I’m proud of the team for all we have done in 2023 to set the company up for success in 2024.”

The Company has provided the following Corporate and Site Updates.

Corporate Highlights:

• Ancillary Services Revenue Kicks Off — The company completed its Ancillary Services registration, joining ERCOT’s Demand Response program.  A key milestone in the Company’s plan to diversify its revenues.

• Project Dorothy 2 (50 MW) – The project continues progress on development, including finalizing its Helix AI pilot. 

• Project Kati (166 MW) – The project continues momentum into 2024 and is expected to exit the ERCOT planning phase before the end of Q1 2024.
• Upward Trajectory in Hashprice: November and December marked notable months for hashprice, with increases of 20% and almost 50%, respectively, versus 3Q23 averages. Rising Bitcoin transaction fees and Bitcoin’s appreciation in value have substantially bolstered the financial performance of Project Dorothy 1B and Project Sophie.

Key Company Metrics: 

• This release includes an updated reporting methodology for power and hashrate data in the Company’s press release, issued November 29, 2023. 
• The data in the site charts throughout the release has been updated to reflect a consistent calculation of power consumption using month over month versus a year to date calculation, which will be the standard for all business updates from the Company going forward. Edits have also been made to improve clarity. 
• Metrics for all sites are as of December 13, 2023.
• All power consumption metrics are cumulative, year-to-date, totals.
• Curtailed Energy is energy produced by the wind farm and consumed by Soluna’s Project Dorothy which the grid either could not absorb or was not economically valuable.
• Average Power Cost is a long-term contracted average. It does not represent a month-to-month average. 

n/a = Not Available

Key Project Updates and Metrics

Project Dorothy 1A ( 956 PH/s, 25 MW, Hosting):

n/a = Not Available

• The team has continued to optimize steady-state operations while implementing control system requirements to support the winter months.

Project Dorothy 1B ( 817 PH/s, 25 MW, Prop-Mining):

n/a = Not Available

• Additional full-time hires made as the team has fully transitioned from commissioning to steady state operations achieving new peaks in hash rate of 822 PH/s following firmware updates and triage efforts.

Project Sophie (772 PH/s, 25 MW, Hosting with Profit Share):

*Note: Under our contract at Project Sophie we are only allowed to operate 83% of the time. Average has been adjusted to contemplate only hours we are contractually permitted to run.

• The Company completed the marketing of the remaining slots at Sophie, with two finalist customers, one being a new addition to its customer roster.
• Site optimization from the recently added hosting customers is improving and preparation for deployment of a new hosting customer in January is underway.

Project Dorothy 2 (50 MW):

• Construction bid period planned for early 2024.
• Procurement of long-lead equipment underway.
• ERCOT model update submission completed with approval expected in early 2024.
• Site layout updates needed to include Helix AI data center design finalized.

Project Kati (166 MW):

• All studies have been completed and submitted to ERCOT as of November 28th.  Project Kati is expected to exit the ERCOT planning phase before the end of Q1 2024.
• Definitive PPA agreements set to be finalized by the end of the 2023 calendar year.
• Negotiations have begun with land owners for land lease agreements.

View Soluna’s Earnings Power Presentation here.

View Soluna’s summary of third-quarter results here.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

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 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.’

Contact Information

Sam Sova

Founder and CEO

SOVA

Sam@teamsova.biz