Soluna Project Dorothy 1 Reaches Full Capacity of 50 MW, Company hits 2.6 EH/s Hashrate Milestone

Provides Operational Update and Curtailed Energy Consumption Achievement

ALBANY, NY, September 26, 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 today it has brought Project Dorothy 1 fully online, with a focus on sustainability and enabling more renewable energy on the grid, completing construction on Project Dorothy 1B, and deploying 50 MW of Bitcoin mining machines for its hosting and proprietary businesses. This now brings Soluna to 2.6 EH/s under management. 

John Belizaire, CEO of Soluna Holdings, commented, “We’ve had a busy summer ramping Project Dorothy through record high temperatures. As we approach the peak wind months and cooler temperatures in Texas, we have achieved a key milestone to complete Project Dorothy 1 and bring it to its 50 MW capacity. We have also made great progress accelerating development at Project Dorothy 2, Project Kati, and working on operational improvements, including significant reductions in SG&A. We also began delivering on our promise to mitigate curtailment for renewable energy power projects.”

The Company has provided the following Corporate and Site Updates.

Corporate Highlights:

• Flagship fully ramped – In late August, the Company completed the construction and fully ramped Project Dorothy 1. The site now has a full 50 MW of capacity energized with record-breaking power usage effectiveness (PUE) of 1.01. Since the beginning of the year Soluna has racked more than 15,630 Machines. More than 1.76 EH/s is installed at the site bringing the Company total over 2.6 EH/s.
• Platform for Cashflow – Getting Project Dorothy to scale is just in time for the cooler months in Texas where Soluna expects seasonally high winds and power prices well below $25 / MWh on average.
• First Month of Positive EBITDA – The Company achieved its first monthly positive EBITDA (a non-GAAP measure related to GAAP operating earnings)  in July (unaudited) and reduced G&A by more than $1M current year to date versus prior year to date as part of its cost optimization programs. 
• Curtailment Consumption Ramps – Soluna has now monetized a groundbreaking 1,286 MWh of curtailed (wasted) energy for its Power Partner at Project Dorothy. This is equivalent to driving an electric car for more than 4.8 million miles (assuming 3 miles per kWh).
• MaestroOS(™) Delivers – Soluna’s  proprietary data center management software continues to flawlessly manage the power, operations, and curtailment of data centers. Soluna deployed new operational dashboards and control systems throughout the Company.
• Cash Balance – The Company expects to end the quarter with a strong cash balance.
• Investor Communication – The Company completed its third AMA. It also released an updated video of Project Dorothy.

Key Company Metrics: 

Project Dorothy 1A ( 951 PH/s, 25 MW, Hosting):

• Data center fully ramped amidst the record Texas summer heat.
• MaestroOS managed curtailments and the high electricity prices driven by peak demand during the summer months.
• Hired new full-time employees to the operating team.

Project Dorothy 1A Metrics:

Project Dorothy 1B ( 816 PH/s, 25 MW, Prop-Mining):

• Construction completed in August on all 22 modular buildings.
• Completed 100% of its proprietary mining deployment, and energized the final 25 MW of the site.

Project Dorothy 1B Metrics:

Project Sophie (844 PH/s, 25 MW, Hosting):

• Completed sales of decommissioned proprietary miners, totaling more than $1.5M in proceeds year to date.
• Achieved a record high peak hashrate of 825 PH/s.
• Implemented hashrate optimizations and thermal management programs to improve Power Usage Effectiveness (PUE).

Project Sophie Metrics:

Project Kati (166 MW):

• Completed three out of the four major studies in record time and are in the process of preparing to submit the project to the ERCOT planning process.
• PPA Definitive Agreements were drafted by the IPP.
• RFP launched for Retail Electric partners.
• RFP launched for equipment partners.

View Soluna’s Earnings Power Presentation 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.

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