FREE

Another Milestone Hit; Cash Flow Contributions Building; Corporate Transformation Accelerating

Project Dorothy 1 is now fully energized at 50 MW. The company has installed more than 15,000 machines, giving the site more than 1.76 EH/s. Project Dorothy 1 is also operating at a record-breaking power usage effectiveness (PUE) of 1.01, further highlighting the efficiency of Soluna’s modular data centers and the company’s proprietary system Maestro OS (™), which has flawlessly managed power curtailment through the record heat this summer. Fireside chat with CTO Dip Patel on October 10 at 11:00 am ET; registration link in our full report which can be accessed below. Topics will include a deep dive on Soluna’s Maestro OS and how it gives the company a competitive advantage as well as the technology behind the unique and highly efficient modular data centers that operate without liquid cooling or water. Cash flow contributions to grow with newly energized capacity. Project Dorothy is positioned to take advantage of the seasonally strong fall winds and attractive power prices. Soluna now has 25 MW at Project Dorothy 1B operating its proprietary Bitcoin mining JV with Navitas Global and another 50 MW of combined hosting contracts at Project Dorothy 1A and Project Sophie. The company expects these projects alone to contribute more than $10 million in annual project-level operating earnings. First month of positive EBITDA, cash position strengthening. Soluna achieved its first month of positive EBITDA in July on the back of increased project earnings and its ongoing G&A reduction efforts. At the end of June, cash stood at $7.5 million, up from $1.1 million at YE22, which should be helped in 3Q and 4Q by the growing contributions from the portfolio of projects. Progressing on the 50 MW Phase 2 at Project Dorothy. The company noted that it is in discussions with potential partners for the 50 MW Phase 2 of Project Dorothy. Importantly, ERCOT approval has already been received for these 50 MW, making it a very attractive project that is shovel-ready and will allow the company to move quickly to monetize its assets as contracts are finalized. Soluna has stated that each 25 MW (100% owned) can contribute $6-7 million in annual project-level EBITDA. The 166 MW at Project Kati is gaining investor interest and progressing through the ERCOT approval process. The company has completed three out of the four major ERCOT studies in record time and is preparing to submit the project to ERCOT’s planning process. We note that Soluna was selected for Project Kati from more than 20 other players, and in particular, the wind farm owners were impressed with Soluna’s proprietary Maestro operating software and efficiency.