Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Corporate Update (June 2022)
59 slides from Soluna's corporate update, Jun 27, 2022
Slide 1: Soluna Computing May 2022 Flash
1 HOLDINGS COMPUTING May 2022 Flash June 2022
Slide 2: Preamble
2 Preamble The following discussion is completely qualified by the legal disclosures on the several pages following this one Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business The discussion is in line with our princip
Slide 3: Legal Disclosure & Disclaimer
3 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 activiti
Slide 4: Legal Disclosure & Disclaimer
4 Legal Disclosure & Disclaimer The material in this presentation has been prepared by Soluna and is general background information about Soluna’s activities, current as at the date of this presentation and is provided for information purposes only. It should be read in conjunction with Soluna’s per
Slide 5: Legal Disclosure & Disclaimer: Use of Projections and Illustrations
5 Legal Disclosure & Disclaimer Use of Projections and Illustrations This presentation contains certain financial forecasts and illustrations. Neither Soluna’s [nor Soluna Holdings] independent auditors have studied, reviewed, compiled or performed any procedures with respect to the projections for
Slide 6: Key Operating Principles
6 Key Operating Principles (1) Calculated as a percent of total undiluted shares
Slide 7: Batch-oriented computing using excess renewable energy
7 Batch-oriented Computing like cryptocurrency mining Excess energy from renewable sources We buy curtailed energy from renewable power plants and convert it to clean, low-cost global computing. 7
Slide 8: The opportunity beyond crypto is Batchable Computing
8 The opportunity beyond crypto is Batchable Computing Digital currencies $10B Pharma research $5B Graphics/video processing $40B Scientific research $40B
Slide 9: Agenda
9 Agenda Business Update May 2022 Results In Detail In this presentation, we will be covering the following items:
Slide 10: Business Update
10 Business Update
Slide 11: Engineered to thrive in a BTC downturn
11 Engineered to thrive in a BTC downturn Right company Right plan for volatile environment
Slide 12: Soluna DNA
12 Low power cost: Every site must have the ability to operate between 2.5-2.7 ¢ per kWh Assures operational profitability Solutions provider to renewable energy generators & grid operators: Creates low-cost power opportunities High Performance Computing: Clear target to grow organically and by acqu
Slide 13: Highlight: Sophie Low Power Cost
13 Highlight: Sophie Low Power Cost Note: “Illustration at $22k BTC” column in the chart above assumes no change in network hashrate, same electricity/direct costs, and same overhead costs as May 2022 (an estimate). For more information on these non-GAAP financial measures, please see the section ca
Slide 14: Line of Sight To Targets
14 Line of Sight To Targets Dorothy We expect to energize at least 20 MW by September. This is about 600 PH Working with Texas regulator to assure security of the grid as we ramp to 100 MW Marie: We expect to re-formulate our hosting deal in September 2022 or convert those slots to proprietary capac
Slide 15: Financing Update
15 We have ramped up the resources to help us raise project financing Financing Update Despite recent market conditions, we have had a strong reception in the marketplace and have an active process in place Cost of computing equipment has scaled down by 60-70% since January 2022 publication of Earni
Slide 16: Soluna targets a solution to two key constituencies
16 Soluna targets a solution to two key constituencies Power Producers: “Sell Every Megawatt” Data Scientists: “Low Cost Batchable Computing” Soluna Has The Right Business Plan Creates low-cost power opportunities Diversify to batchable computing Sits at intersection of computing & power Monetize in
Slide 17: VS MUWN SS
VS MUWN SS L722 ZHI Z LL ged in Detail oS
Slide 18: Business Summary
18 Business Summary Significant Ramp In May Boosts Performance Despite Low BTC Prices BTC Equivalent Mined was the same* Month-over-Month despite average BTC prices decreasing by 23% Average Hashrate deployed grew 22% Month-over-Month** Drivers to margin growth Site margins meeting expectations in l
Slide 19: Working To June Target
19 Working To June Target ** 2022 Earnings Power Illustration released on January 19th, 2022. Not updated since original publication. Press release and presentation can be viewed here. Management Estimate +/- 30 days 1.021 EH/s installed as of June 4th, 2022
Slide 20: Facility Results Review
20 We will review each facility Then look at the consolidated results Facility Results Review
Slide 21: Edith
21 Edith Continue to optimize equipment mix at mature facility Cash Contribution Margin (Non-GAAP) at $65 thousand for May versus $127 thousand in April o The decrease in margin was due to a decrease in BTC prices As of June 4th, 2022, 12.0 PH/s deployed o Average May 2022 hashrate was 12.1 PH/s Not
Slide 22: Edith: Non-GAAP Historical Financials
22 Edith: Non-GAAP Historical Financials For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are prepared and
Slide 23: Sophie
23 Sophie Ramped to 451.9 PH/s as of June 4th, 2022 o A 40% increase from the average hashrate of 322.7 PH/s in May o Significant ramp up of installed machines continues Cash Contribution Margin (Non-GAAP) in May was $830 thousand versus $1,190 thousand in April o The decrease in margin was due to a
Slide 24: Sophie: Non-GAAP Historical Financials
24 Sophie: Non-GAAP Historical Financials For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are prepared an
Slide 25: Marie
25 Marie Prop Mining hashrate increased 33% from average 206.3 PH/s in April to 273.7 PH/s in May. The site has fully recovered from the forced shutdown in April Cash Contribution Margin in May was $699 thousand, compared to $1,280(1) thousand in May o The decrease in margin was due to a decrease in
Slide 26: Marie: Non-GAAP Historical Financials
26 Marie: Non-GAAP Historical Financials(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-GAAP finan
Slide 27: Marie: Operating Metrics
27 Marie: Operating Metrics(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-GAAP financial measures
Slide 28: Site Consolidation
28 Site Consolidation Average Hashrate deployed grew 22% Month-over-Month o Marie recovered from the forced shutdown in April o Sophie continued its ramp Combined installed hashrate increased by 14% to 1.02 EH/s over average 896.6 PH/s in May Sites performing consistently even in lower BTC price env
Slide 29: Consolidated Soluna Computing Non-GAAP Historical Financials
29 Consolidated Soluna Computing Non-GAAP Historical Financials(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information
Slide 30: Consolidated Soluna Computing Operating Metrics
30 Consolidated Soluna Computing Operating Metrics(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-
Slide 31: Appendix
31 Appendix
Slide 32: Earnings Power Illustration: Various BTC Prices
32 Earnings Power Illustration: Various BTC Prices Note: The three scenarios represent changes in BTC price only (in 000’s) Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Scenario 1: BTC is $20,000 Total Revenue 6,528 7,450 12,062 20,104 46,145 25,393 Contribution Margin (Non-GAAP) 3,437 3,932 7,344 13,372 28,0
Slide 33: Our data centers are named after catalyzers
33 Our data centers are named after catalyzers Edith Sophie Marie Marie Curie was a fearless seeker of truth—a pioneer in the field of radioactivity. She won two Nobel Prizes. In pursuit of the truth, Soluna is constructing a data center with complete transparency to help make the grid stable. Why s
Slide 34: Marie: Impact of forced shutdown
34 Marie: Impact of forced shutdown *Note: Management estimate Forced shutdown led to a reduction in revenue of $531 and $319 thousand (12.82 and 7.59 BTC equivalent mined) in April and March, respectively and Cash Contribution Margin of $278 and $163 thousand, respectively A new line was installed
Slide 35: Consolidated Non-GAAP Historical Financials With Legacy Hosting
35 Consolidated Soluna Computing Non-GAAP Historical Financials With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated f
Slide 36: Consolidated Operating Metrics With Legacy Hosting
36 Consolidated Operating Metrics With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are
Slide 37: Marie: Non-GAAP Historical Financials With Legacy Hosting
37 Marie: Non-GAAP Historical Financials With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, wh
Slide 38: Reconciliation of non-GAAP results to nearest comparable GAAP measures
38 Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures
Slide 39: Reconciliation: GAAP Revenue to Non-GAAP Revenue YTD May 2022
39 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue YTD May 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $838 $8,121 $6,752 $0 $15,711 less Legacy Hosting Revenue 0 52 0 0 52 Revenue (Non-GAAP) $
Slide 40: Reconciliation: Cost of Revenue YTD May 2022
40 Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) YTD May 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $838 $8,121 $6,752 $0 $15,711 Cost of cryptocurrency
Slide 41: Contribution Margin & Cash Contribution Margin YTD May 2022
41 Reconciliation Of Non-GAAP Results Contribution Margin & Cash Contribution Margin (Non-GAAP) YTD May 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $838 $8,121 $6,752 $0 $15,711 Cost of cryptocurrency revenue (GAAP) 498 7,724 6,928 0
Slide 42: Reconciliation: GAAP Revenue to Non-GAAP Revenue Q1 2022
42 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $0 $9,316 less Legacy Hosting Revenue 0 52 0 0 52 Revenue (Non-GAAP) $517 $4,940 $3,808 $0 $9,264 Q1
Slide 43: Reconciliation: Cost of Revenue Q1 2022
43 Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $0 $9,316 Cost of cryptocurrency revenue (GAAP): Electricity/Dir
Slide 44: Reconciliation: Contribution Margin Q1 2022
44 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $0 $9,316 Cost of cryptocurrency revenue (GAAP) 299 4,598 3,961 0 8,859 Depreciation 93 2,127 2,104 0 4,324 Project Equipment Repairs 0 0 0 0 0 Contributi
Slide 45: Reconciliation: GAAP Revenue to Non-GAAP Revenue FY 2021
45 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 less Legacy Hosting Revenue 0 1,335 0 0 1,335 Revenue (Non-GAAP) $3,648 $6,590 $2,772 $0
Slide 46: Reconciliation: Cost of Revenue FY 2021
46 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 Cost of cryptocurrency revenue (GAAP): Electricity/Direct costs* 611 3,712 884 0 5,207
Slide 47: Reconciliation: Contribution Margin FY 2021
47 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 Cost of cryptocurrency revenue (GAAP) 1,174 4,992 1,904 0 8,070 Depreciation 314 1,096 713 0 2,123 Project Equipment Repairs 23 0 0 0 23 Cont
Slide 48: Reconciliation: GAAP Revenue to Non-GAAP Revenue Q4 2021
48 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 less Legacy Hosting Revenue 0 579 0 0 579 Revenue (Non-GAAP) $864 $4,354 $2,772 $0 $7,990 Q
Slide 49: Reconciliation: Cost of Revenue Q4 2021
49 Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 Cost of cryptocurrency revenue (GAAP): Electricity/Dir
Slide 50: Reconciliation: Contribution Margin Q4 2021
50 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 Cost of cryptocurrency revenue (GAAP) 299 3,274 1,881 0 5,455 Depreciation 91 938 713 0 1,742 Project Equipment Repairs 0 0 0 0 0 Contribution M
Slide 51: Reconciliation: GAAP Revenue to Non-GAAP Revenue Q3 2021
51 Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,124 less Legacy Hosting Revenue 0 757
Slide 52: Reconciliation: Cost of Revenue Q3 2021
52 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,1
Slide 53: Reconciliation: Contribution Margin Q3 2021
53 ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,124 Cost of product revenue (GAAP) 0 0 0 0 0 661 0 661 Cost of cryptocurrency revenue (GAAP
Slide 54: Reconciliation: Cost of Revenue Q2 2021
54 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue (GAAP) $988 $669 $0 $0 $1,657 $0 $0 $1,657
Slide 55: Reconciliation: Contribution Margin Q2 2021
55 Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue (GAAP) $988 $669 $0 $0 $1,657 $0 $0 $1,657 Cost of
Slide 56: Reconciliation: Cost of Revenue Q1 2021
56 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue (GAAP) $891 $104 $0 $0 $995 $0 $0 $995 Cos
Slide 57: Reconciliation: Contribution Margin Q1 2021
57 Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue (GAAP) $891 $104 $0 $0 $995 $0 $0 $995 Cost of pro
Slide 58: The future of renewable energy is computing.
58 The future of renewable energy is computing.
Slide 59: Learn more at solunacomputing.com
59 Learn more at solunacomputing.com