Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Investor Presentation (June 2023)
39 slides from Soluna's investor presentation, June 2023
Slide 1: Company Overview and Earnings Power Illustration
HOLDINGS Company Overview And Earnings Power Illustration June 2023 1
Slide 2: Preamble
Preamble The following content is Our goal is to share with you The content is in line with our completely qualified by the some of our strategic thinking and principles of being legal disclosures on the slide financial analysis we are using to accountable and transparent following this one. guide t
Slide 3: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act that reflect our current views with respect to, among other things, our operations, business strategy, interpretation of prior development activities
Slide 4: Executive Summary
Executive Digital infrastructure company that converts wasted renewable Summary energy to global computing for Bitcoin mining and High Performance Computing. Leading curtailment solutions TICKER MW MANAGED HASHRATE provider to the renewable SLNH / 75 MW 0.9 EH/s Prop- * energy business Mining We buy
Slide 5: Company Overview
Company Overview 5
Slide 6: We buy curtailed energy from renewable power plants
We buy curtailed energy from renewable power plants and convert it to clean, low-cost global computing. Bitcoin Mining and Excess energy from High Performance renewable sources Computing 6
Slide 7: Not all renewable energy can be used because the grid is inflexible
Not all renewable energy now being produced can be used because the grid is inflexible… $ 6.75B Annually lost revenue due to wasted energy* *Based $30/MWh Global Average LCOE – 2019 Lazard Report 7
Slide 8: How We're Solving the Wasted Energy Problem
How We’re Solving the Wasted Energy Problem We build data centers that consume curtailed renewable energy. 150 MW Wind Farm + 50 MW Data Center +150 MW Data Center 8
Slide 9: Unique Interconnection Strategy
Unique Interconnection Strategy Behind-the-Meter Structure Allows Our Modular Data Centers to Remain Flexible, Drawing Power from the Grid or Renewable Power Plant and Provide Ancillary Services Wind Farm HV MV Meter Meter Grid Substation Solar Farm MV 3 Meter MV LV MV Switchgear 2600 kVA 1.2 MW per
Slide 10: How We Source Power for Our Data Centers
How We Source Economic/Technical curtailment from Power for CURTAILED negative LMP. ENERGY Our Data We purchase energy at a fixed Centers price. MDC* Energy that would Energy that is sourced have gone to grid from the grid in excess without the load. SUBTRACTIVE GRID of plant production. We purchase
Slide 11: Our Data Centers Can Do More Than Mine Bitcoin
Our Data Centers Purpose-built to efficiently convert curtailed renewable Can Do More Than energy into high performance Mine Bitcoin computing. Power Input: Monitoring: Emergency Shutdown Configurable, Nominal Full Remote Monitoring for Time: 416/240 VAC 3-phase Operations and Security 2s Power Load
Slide 12: MaestroOS Is Our Force Multiplier
MaestroOS Is Our Force Multiplier Control Operations Power Enhancing equipment lifespan and reducing Real-time tracking of miners, PDUs, Extensible architecture allows for quick failures through multiple redundancies. networking equipment, and power adaptation of algorithms, facilitating infrastruct
Slide 13: $120B+ market opportunity
$120B+ $9B+* Digital currencies market $5B* opportunity Scientific research Our long-term strategy is to dominate a few relatively small niche markets (Bitcoin mining, GPU cloud, etc.) by offering a truly zero-carbon cloud to a variety of end $50B+* markets that are currently not served by data cent
Slide 14: How Soluna Makes Money
How Prop Bitcoin High Performance Soluna Mining Computing Makes • Soluna or JV owned Bitcoin mining machines • Bitcoin sold daily • GPU Cloud – AI/ML, simulation, visualization, predictive analytics, and deep learning Money • Soluna provides Managed Infrastructure Services • GPU machines could be ho
Slide 15: The Soluna Way
Source The low-cost curtailed Soluna power from IPPs Way Grow pipeline Build, own, operate MDCs with 2-yr ROIC We tackle wasted energy through digital infrastructure. As we optimize the grid and serve our customers, we fuel our growth, funding further expansion to make renewable Grow AUM Attract ene
Slide 16: Earnings Potential
Earnings Potential 16
Slide 17: 2023 Corporate Focus
2023 Corporate Focus Energize Cash Expand Grow Dorothy Flow+ Flagship Pipeline Shift flagship site from Sign 50MW of Target the Sign term sheets for construction to hosting at Dorothy development of up to 100MW of additional operations. Energize and Sophie, ramp 50 MW of Dorothy 2 behind-the-meter 5
Slide 18: Illustrative Corporate Earnings Potential
Illustrative Site-Level Revenue (in Thousands) Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Sophie (Hosting) 944 990 1,934 1,045 734 708 722 3,209 Dorothy 1A (Hosting) 3,140 4,003 7,143 4,223 4,132 3,914 4,204 16,473 Corporate Dorothy 1B (Prop Mining) 3,328 4,897 8,226 5,332 4,237 3,961 4,254 17,7
Slide 19: Illustrative Corporate + Dorothy 2 Earnings Potential
Illustrative Site-Level Revenue Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Sophie (Hosting) 944 990 1,934 1,045 734 708 722 3,209 Dorothy 1A (Hosting) 3,140 4,003 7,143 4,223 4,132 3,914 4,204 16,473 Corporate Dorothy 1B (Prop Mining) 3,328 4,897 8,226 5,332 4,237 3,961 4,254 17,783 Dorothy 2 (H
Slide 20: Illustrative SLNH Consolidated Earnings Potential
Illustrative EBITDA ($ in Thousands): Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Consolidated EBITDA Sophie 445 501 946 557 241 217 233 1,248 SLNH Dorothy 1a 184 2,120 2,303 1,868 2,337 773 2,325 7,302 Dorothy 1b 490 2,902 3,391 2,892 2,358 736 2,292 8,277 Earnings Ownership % Sophie 100.0% 100.
Slide 21: Summary Capitalization
Summary In millions, except share prices Capitalization Stock Price as of 06/15/2023 $ 0.18 x Basic Shares Outstanding 25.415 Market Capitalization 4.57 Fully Diluted Shares Outstanding 29.11 TICKER Fully Diluted Common Equity Value 5.24 Series A Preferred Share Price as of 06/15/2023 1.85 SLNH / x
Slide 22: Project Dorothy 1A
Project Dorothy 1A CAPACITY MODEL 25MW Hosting EST. ANNUAL REVENUE ENERGIZATION $16.47MM Operational EST. 2024 EBITDA AVERAGE ANNUAL LCOE1 $7.30MM ~$27 / MWh POWER SOURCE PARTNER Wind Spring Lane Capital (1) LCOE net of revenues from ancillary services sold to the grid, which are anticipated to begi
Slide 23: Illustrative Dorothy 1A Earnings Potential
Illustrative Dorothy 1A Earnings Potential Revenue Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Prop Mining Revenues - - - - - - - - Hosting Revenues 3,069 3,702 6,771 3,719 3,639 3,447 3,702 14,507 Services Revenues 71 - 71 - - - - - Ancillary Services Revenues - 301 301 504 493 467 502 1,966 Tot
Slide 24: Project Dorothy 1B
Project Dorothy 1B CAPACITY MODEL 25MW Prop Mining EST. ANNUAL REVENUE ENERGIZATION $17.78MM Operational / Construction EST. 2024 EBITDA AVERAGE ANNUAL LCOE1 $8.28MM ~$27 / MWh POWER SOURCE PARTNER Wind Navitas Global (1) LCOE net of revenues from ancillary services sold to the grid, which are antic
Slide 25: Illustrative Dorothy 1B Earnings Potential
Illustrative Dorothy 1B Earnings Potential Revenue Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Prop Mining Revenues 3,328 4,596 7,925 4,828 3,744 3,494 3,752 15,818 Hosting Revenues - - - - - - - - Services Revenues - - - - - - - - Ancillary Services Revenues - 301 301 504 493 467 502 1,966 Total
Slide 26: Project Sophie
Project Sophie CAPACITY MODEL 25MW Hosting EST. ANNUAL REVENUE ENERGIZATION $3.21MM Operational EST. 2024 EBITDA AVERAGE ANNUAL LCOE $1.25MM ~$31 / MWh POWER SOURCE PARTNER Hydro/Grid None 26
Slide 27: Illustrative Sophie Earnings Potential
Illustrative Sophie Earnings Potential Revenue Q3 23 Q4 23 2H23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Total Revenue (Non-GAAP) 944 990 1,934 1,045 734 708 722 3,209 ` (-) Total Operating Expenses 499 490 989 488 493 490 490 1,961 ` EBITDA 445 501 946 557 241 217 233 1,248 EBITDA Margin % 47% 51% 49% 53% 33%
Slide 28: Project Dorothy 2
Project Dorothy 2 CAPACITY MODEL 50MW Hosting EST. ANNUAL REVENUE ENERGIZATION $33.47MM Shovel Ready EST. 2024 EBITDA MARGIN AVERAGE ANNUAL LCOE1 $16.08MM ~$27 / MWh POWER SOURCE PARTNER Wind TBD (1) LCOE net of revenues from ancillary services sold to the grid, which are anticipated to begin by the
Slide 29: Illustrative Dorothy 2 Earnings Potential
Illustrative Dorothy 2 Earnings Potential Revenue Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Q1 Q2 Q3 Q4 Prop Mining Revenues - - - - - Hosting Revenues - 7,471 7,076 7,600 22,148 Services Revenues - - - - - Ancillary Services Revenues - 996 943 1,013 2,953 Total Revenue (Non-GAAP) - 8,467 8,020 8,614 25,101 (-)
Slide 30: We Have a Growing Pipeline of Projects
We Have a Growing Pipeline of Projects Data 25MW 100MW 166MW 2GW long-term Centers & pipeline with Sophie Dorothy Kati Pipeline large IPPs and 50MW Operating Design* infrastructure Operating funds in the US Powered by and beyond 30 *Design – design and development activities with the IPP underway an
Slide 31: Connect With Us
Connect With Us Twitter LinkedIn Newsletter @SolunaHoldings Soluna Holdings bit.ly/solunasubscribe 31
Slide 32: Appendix
D Appendix 4)
Slide 33: Meet the Soluna Leadership Team
Meet the Soluna Leadership Team John Belizaire David Michaels Larbi Loudiyi Phillip Ng Jessica Thomas Chief Executive Officer Chief Financial Officer VP, Power VP, Corporate Development Chief Accounting Officer Michael Toporek Mary O’Reilly Dipul Patel Chase Stowell Executive Chairman Chief People O
Slide 34: Our Intellectual Property Pipeline
Our Intellectual Property Pipeline # / Patent Stage 35 23 14 9 3 IDEATION IN PATENT PREFILING/ FILED FILED FULL PATENT (Big Ideas) DOCKET DRAFTING PROVISIONAL APPLICATION Patent Summary • Modular Data Center (Flexible/Modular • Modular Computer Array Architecture) (Flexible/Modular Compute Capabilit
Slide 35: Soluna's Expertise
Soluna’s Expertise Implementing our modular data centers is a low-risk, low-friction process because of our five pillars of expertise. Project Energy Computing Project Data Center Development Markets Technology Finance Operations 35
Slide 36: MaestroOS Is Our Optimization Platform
MaestroOS Is Our Optimization Platform Primary Dashboard Power Dashboard 36
Slide 37: Generative AI Market Growth
Generative AI Market Growth $126.5B The global generative AI market size was valued at USD 8.2 Billion in 2021, and is projected to reach USD 126.5 1543% Billion by 2031, growing at a CAGR of 32% from 2022 to 2031. $8.2B 2021 2031 37 Source: https://reports.valuates.com/market-reports/ALLI-Manu-0E89
Slide 38: Global AI Market Size
Europe Global AI Market Size North Market America Latin Share by The global artificial intelligence (AI) market size America Region, was estimated at US$ 119.78 billion in 2022 and 2021 it is expected to hit US$ 1,591.03 billion by 2030 Middle East & Africa with a registered CAGR of 38.1% from 2022
Slide 39: Learn more at solunacomputing.com
Learn more at solunacomputing.com 39