Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Q3 2024 Earnings Presentation
44 slides from Soluna's earnings presentation, November 2024
Slide 1: 3Q 2024 Results & Business Update
HOLDINGS 3Q 2024 Results & Business Update NASDAQ:SLNH November 2024 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 the
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: Company Overview
Company Overview
Slide 5: Driving the convergence of renewable energy & advanced computing infrastructure
We are driving the convergence of renewable energy & To reach its full advanced computing Renewable Energy has a potential AI needs a infrastructure. wasted energy problem. sustainable energy source. Up to 40% of generated energy goes unused. Soluna converts this excess into high performance computi
Slide 6: All forms of renewable energy are growing faster than ever
GW All forms of 12,000 renewable energy are growing faster than ever. 6,000 0 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E Source: IEA data 6 | Nasdaq: SLNH
Slide 7: Renewable energy has a wasted energy problem
RENEWABLE ENERGY HAS A WASTED ENERGY PROBLEM 30 40 of energy produced by renewable plants % goes unused. 7 | Nasdaq: SLNH
Slide 8: Computing is ready now
Storage is not Transmission Computing is yet sufficiently upgrades face too ready now. scalable… many challenges & take too long… 8 | Nasdaq: SLNH
Slide 9: The future of renewable energy is computing
The future of renewable energy is computing… 9 | Nasdaq: SLNH
Slide 10: Data centers co-located with renewable power
Soluna operates data centers co-located with renewable power plants, turning their wasted energy into sustainable computing resources. 10 | Nasdaq: SLNH
Slide 11: Massive pipeline of wasted renewable energy
We have a massive pipeline of wasted renewable energy to power high performance computing. 11 11 | Nasdaq: SLNH
Slide 12: 2024 Corporate Focus
2024 Corporate Focus Launch Optimize Finance Grow AI Projects Projects Pipeline We have 2 MW of our Our objective is to achieve Plan to raise funds to Aim to double our assets Project Dorothy 2 site operational excellence support our growth under management to slated for our Helix Pilot, across all
Slide 13: Why Soluna, Why Now
Why Soluna, We have Why Now a proven behind-the-meter 2.6GW 18% greener approach to source pipeline of wasted renewable energy to than traditional data power, track record of power our data centers, ready to drive execution, a business centers. sustainable AI. model that works. We have Our current (
Slide 14: The Soluna Way
Source The low-cost curtailed Soluna power from IPPs Way Grow Build, own, pipeline operate MDCs with 2-yr We tackle wasted energy ROIC through digital infrastructure. As we optimize the grid and serve our customers, we fuel our growth, funding further expansion to make renewable energy a superpower.
Slide 15: Business Segments
Business Segments Prop Bitcoin Mining Grid Ancillary Services Diversified Revenue • Soluna or JV owned Bitcoin mining • Compensation to act as behind-the-meter Streams machines flexible load for the grid • Bitcoin sold daily • Paid on $ / MWh basis by Utility or Grid Operator • Soluna provides Managed
Slide 16: Meet the Soluna Leadership Team
Meet the Soluna Leadership Team 150 years of combined experience in starting, managing, and leading companies John Belizaire Michael Toporek John Tunison Dipul Patel Mary O’Reilly Chief Executive Officer Executive Chairman Chief Financial Officer Chief Technology Officer Chief People Officer Jessica Tho
Slide 17: AI Cloud and AI Infrastructure
CLOUD AI Cloud AI Infrastructure Training. Tuning. Inference. Hosted Infrastructure / Colocation GPU-as-a-Service Solutions for Enterprise Service at our purpose-built data centers - Sourced from our 2.6GW pipeline 512 Cluster provided by Renewable at HPE DC Energy Strategic Partner 17 | Nasdaq: SLN
Slide 18: AI is the fastest growing technology today
AI is the fastest Time it took for selected online growing technology services to reach one million users today COMPANY LAUNCHED TIME 1 YEAR 2 YEARS 3 YEARS Netflix 1999 3.5 years Kickstarter* 2009 2.5 years Airbnb** 2008 2.5 years Twitter 2006 2 years Foursquare*** 2009 13 months Facebook 2004 10 mo
Slide 19: AI energy demand is growing exponentially
AI HAS AN ENERGY CONSUMPTION CHALLENGE 10-20 GWh AI energy demand is growing exponentially Each step increase in the power of AI models requires an exponential increase in energy consumption just for training. Source: 1 GWh https://www.google.com/url?q=https://mpost.io/gpt-4s-leaked-details-shed-lig
Slide 20: The Lifecycle of AI
The Lifecycle of AI Gen AI is batchable: Parts of the Generative AI lifecycle are perfect computing applications for co-location with renewable Batchable process power plants, because they are inherently batchable. Real-time process Training Fine Inferencing Tuning A new model is created from scratc
Slide 21: Soluna Cloud's Differentiators
Soluna Cloud’s Differentiators We’re powered by We’re enterprise Full turnkey We help meet Soluna utilizes We are renewable energy scalable software platform ESG goals wasted energy in cost-effective for designed for rapid our purpose built getting started deployment of Gen data centers with AI AI w
Slide 22: Operational Highlights
Operational Highlights 2024
Slide 23: Soluna Highlights
Soluna Highlights 1 INSTALLED HASHRATE MW MANAGED YEAR TO DATE REVENUE 2.6 EH/s 2 75 MW 478 MW 3 $29.7 Million AVERAGE POWER COST5 CURTAILED ENERGY MONETIZED GROWTH EQUITY LINE $30 / MWh 4 87,377 MWh $25 Million GPUs DEPLOYED POWER DEVELOPMENT PIPELINE AVERAGE J / TH/s 512 ~2.6 GW <26 J / TH/s 4 (1)
Slide 24: Our Accomplishments in 2024
Our Accomplishments in 2024 Business Project Milestones Milestones ● Hire new CFO ● Project Kati signs PPA for 167 MW ● Launch new business unit, Soluna Cloud ● Raised $30M Spring Lane Capital to finance Dorothy 2 ● Sign strategic OEM deal with HPE to secure 512 Nvidia H-100 GPUs ● Broke Ground on Do
Slide 25: Growing pipeline of projects
We have a Total Long-Term Pipeline PROJECTS 2,616 MW 2,616 growing Total Curtailment Assessment Completed (YTD) 2,616 2,616 pipeline of Active Term Sheet Negotiations 1,160 1,160 Shovel Ready, PPA, or Signed Term Sheets 403 403 projects Average Data Center Project Size Total Power Partners 150 12 15
Slide 26: Our Data Center Projects
Our Data Center Projects We have over 478 MW of data center capacity in operation, construction or development Project Location Power Source Size (MW) Model Status Partner Dorothy 1A TX Wind 25 BTC Hosting Operating Spring Lane Dorothy 1B TX Wind 25 BTC Mining Operating Navitas Sophie KY Grid 25 BTC
Slide 27: Project Dorothy 2
Project Dorothy 2 Construction is underway at the expansion of our flagship project. Foundations for the first 30 MW have been poured and MDC fabrication and framing are underway. The initial scope of work for the substation interconnection has been scheduled to be completed in November with a tie-in
Slide 28: Soluna Cloud Update
Raise Signe d d stra Priva $13.25m with tegic te Inv HPE O estor from s for ac EM deal cess to 1s GPU t 28 | Nasdaq: SLNH Clust er Depl oyed Hired at Tie GP new Milestones Q3 sales r-3 fa U cluster Cana cility team da in 10 P OC Nvid comp s or evalu ia CS leted ation appli P par tner s catio n sub s
Slide 29: Financial Highlights
D Financial | Highlight Ss ~
Slide 30: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights Solid Third Quarter Continued Strong Resilient Adjusted Strong Cash Revenue Revenue EBITDA Growth Revenue increased by 30% to 2024 Year to Date (“YTD”) 2024 YTD adjusted EBITDA is Unrestricted cash increased $7.5 million in the three revenue reaches a high of $3.5 millio
Slide 31: Cumulative Revenue by Quarter
Cumulative Revenue by Quarter (Consolidated) Q3 2023-24 $35,000 $29,749 $30,000 (in 000’s) $25,000 $22,224 Best YTD Revenue to Date - $20,000 2024 Year to Date (“YTD”) revenue reaches a high of $29.7 $15,000 $12,594 million, compared to the 2023 $10,948 YTD of $10.9 million, a $18.8 $10,000 million
Slide 32: Cumulative Adjusted EBITDA by Quarter
Cumulative Adjusted EBITDA by Quarter (Consolidated) Q1 2023-24 $8,000 $6,943 $6,000 $5,147 (in 000’s) $4,000 $3,461 Resilient Adjusted EBITDA - 2024 $2,000 YTD adjusted EBITDA is $3.5 million, compared to the 2023 YTD $0 loss of ($4.5 million), an increase of $8.0 million driven by continued ($2,00
Slide 33: Revenue & Cost of Revenue by Project Site Q3 2024
Revenue & Cost of Revenue by Project Site Q3 2024 (in 000’s) Revenue for the third quarter of 2024 was $7.5 million, currently representing 100% of the company's consolidated revenue. This is an increase of $1.7 million over the third quarter of 2023. Total Cost of Revenue for the third quarter of 2
Slide 34: Revenue & Cost of Revenue by Project Site Q3 2023
Revenue & Cost of Revenue by Project Site Q3 2023 (in 000’s) 34 | Nasdaq: SLNH
Slide 35: Cumulative Gross Profit by Quarter
Cumulative Gross Profit by Quarter (Digital) Q1 2023-24 $14,000 $12,540 $12,000 (in 000’s) $11,044 $10,000 Year-to-date 2024 Gross $8,000 Profit is $12.5 million, $6,934 compared to the 2023 YTD $6,000 $5,237 of $1.0 million. $4,000 $2,000 $952 $0 ($66) ($455) ($2,000) Q3 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3
Slide 36: Learn more at solunacomputing.com
Learn more at solunacomputing.com 36 | Nasdaq: SLNH
Slide 37: Connect With Us
Connect With Us X / Twitter LinkedIn Newsletter @SolunaHoldings Soluna Holdings bit.ly/solunasubscribe 37
Slide 38: Appendix
Appendix 38
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet (1)Prior period results have been adjusted to reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023. 39 | Nasdaq: SLNH
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet (1)Prior period results have been adjusted to reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023. 40 | Nasdaq: SLNH
Slide 41: Consolidated Statement of Operations
Consolidated Statement of Operations (1)Prior period results have been adjusted to reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023. 41 | Nasdaq: SLNH
Slide 42: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 42 | Nasdaq: SLNH
Slide 43: Prior Year Comparison Adjusted EBITDA
Prior Year Comparison Adjusted EBITDA 43 | Nasdaq: SLNH
Slide 44: FY 2023-24 by Quarter Adjusted EBITDA
FY 2023-24 by Quarter Adjusted EBITDA 44 | Nasdaq: SLNH