by John Roy at Water Tower Research
Key Points:
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. Maestro OS™, which is its proprietary software, helps energize a greener grid, while delivering cost-effective and sustainable computing solutions, and superior returns.
As all forms of renewable energy are growing faster than ever, Soluna is at the intersection of AI computing needs and renewable energy—renewable computing. About 30-40% of produced renewable energy is unused.
Soluna has historically focused on Bitcoin mining, but it is now adding AI/HPC computing. The company now has more than 2,600 MW of energy for data center projects in its pipeline. Soluna’s addressable market, which is both substantial and growing, is currently ~$70 billion and is expected to grow at a 15-20% CAGR for the next decade to ~$250 billion.
As of October 2024, Soluna had ~478 MW of data center capacity across seven projects in operation, construction, or development, up from 145 MW in October 2022, which is more than 3x growth. Construction of its flagship project, Dorothy 2, is underway as the foundations for the first 30 MW have been poured, with modular data center (MDC) fab and framing underway.
Soluna’s revenue has been growing significantly Y/Y as it ramped up new projects over the last four quarters, with Y/Y revenue growth of 142%, 307%, 368%, and 30%. The company is not yet profitable.
Soluna’s comparables include crypto mining, power generation, and data center companies of similar sizes. The comparables have a median P/S of 6.8x, with Soluna trading at a significant discount of 0.4x, which is a 95% discount.
CEO John Belizaire joined us for a fireside chat on February 10, 2025. Click here to access. Those interested can find previous reports on Soluna on our website.
