Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — February 2022 Earnings Presentation
54 slides from Soluna's earnings presentation, Mar 16, 2022
Slide 1: February 2022 Flash, March 2022
HOLDINGS COMPUTING February 2022 Flash March 2022 1
Slide 2: Preamble
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 principle
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: Legal Disclosure & Disclaimer
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 perio
Slide 5: Legal Disclosure & Disclaimer: Use of Projections and Illustrations
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 th
Slide 6: Key Operating Principles
Key Operating Principles (1) Calculated as a percent of total undiluted shares 6
Slide 7: We buy curtailed energy from renewable power plants and convert it to computing
We buy curtailed energy from renewable power plants and convert it to clean, low-cost global computing. Excess energy from renewable sources 7 Batch-oriented Computing like cryptocurrency mining
Slide 8: The opportunity beyond crypto is Batchable Computing
The opportunity beyond crypto is Batchable Computing 8 $10B Digital currencies $5B Pharma research $40B Graphics/video processing $40B Scientific research
Slide 9: Agenda
Agenda In this presentation, we will be covering the following items: Business Update February 2022 results in detail 9
Slide 10: Business Update
Business Update 10
Slide 11: Business Summary February 2022
Business Summary February 2022 Prop Mining BTC Equivalent generated per day increased by 16% We are scaling As of March 12th, 2022, 815 PH/s installed with over 185 PH/s on the ground being plugged in to meet our 1 EH/s target by end of March Excluding Hosting JV (284 PH/s), expect to mine over 100
Slide 12: Our Targets For 2022
Our Targets For 2022 Our Energized Capacity Ramps Over 150 MW ✓w Our Hashrate Scales Over 3 EH ✓w Note: 2022 Earnings Power Illustration released on January 19th, 2022. Not updated since original publication. Press release and presentation can be viewed here. 12
Slide 13: We achieved our EH/s goal
We achieved our 1 EH/s goal 36% Prop Mining hashrate growth over the second quarter Over 185 PH/s on the ground to be installed over the upcoming weeks Remainder of growth will be Prop Mining increasing by ~36% Over 185 PH/s on the ground 815 PH/s installed as of March 12th, 2022 13 *Our Hosting JV
Slide 14: Capital Expenditures
Capital Expenditures Dynamic crypto ecosystem drives $50-$70 million capital expenditure budget decrease Capital expenditure revised from about $300 million to $230-$250 million As crypto prices have declined, so have equipment prices 20% 24% 26% 76% 71% Jan 2022* 14 68% Current Compute Price** *Not
Slide 15: Significant Progress On Capital Raise
Significant Progress On Capital Raise Actively engaged with capital providers discussing potential terms Reiterating anticipated close of MTI Instruments business sale by end of March Expect steady set of capital raising announcements through the second quarter Usually biased against disclosing term
Slide 16: Facility Results Review
Facility Results Review We will review each facility Then look at the consolidated results February is a 28-day month versus January’s 31 days; causes a 10% revenue difference 16
Slide 17: Edith
Edith Continue to optimize equipment mix at mature facility Cash Contribution Margin (Non-GAAP) rebounded from $83 thousand to $132 thousand in February o BTC equivalent mined increased by 24% from 3.66 in January to 4.54 in February o Hashrate and MW deployed decreased a bit due to optimizing mix o
Slide 18: Edith: Non-GAAP Historical Financials
Edith: Non-GAAP Historical Financials ($ in 000s) (Unaudited) Actual Actual Actual Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Q1 21 Q2 21 Jul 21 Aug 21 Sep 21 Q3 21 Oct 21 Nov 21 Dec 21 Q4 21 FY 21 Jan 22 Feb 22 YTD 22 Revenue 891 988 277 345 284 905 324 317 222 864 3,64
Slide 19: Sophie
Sophie Ramped to 274 PH/s as of March 12th, 2022 o A 29% increase from the average hashrate in February As of March 1, 2022, Sophie is on its long-term power contract which should enhance margins. Uptime is about 85%, rate usually varies from 2.5 ¢ per kWh to 2.7 ¢ per kWh 29% 12% (31 days) 19 3% (2
Slide 20: Sophie: Non-GAAP Historical Financials
Sophie: Non-GAAP Historical Financials ($ in 000s) (Unaudited) Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Oct 21 Nov 21 Dec 21 Q4 21 FY 21 Jan 22 Feb 22 YTD 22 Revenue 543 1,048 1,181 2,772 2,772 1,294 1,132 2,426 Electricity/Direct Costs* 182 159 385 726 726 349 574 922
Slide 21: Marie
Marie Scaled up to 25 MW and fully energized Feb 10th, 2022 o Planned transformer upgrades complete Prop Mining BTC Equivalent generated increased 24% from 25.10 in January to 31.01 in February Seller’s legacy customer rolled off earlier than planned o Overhead absorbed by customer now allocated to
Slide 22: Marie: Non-GAAP Historical Financials
Marie: Non-GAAP Historical Financials(A) ($ in 000s) (Unaudited) Revenue (Non-GAAP) Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Actual Actual Q1 21 Q2 21 Jul 21 Aug 21 Sep 21 Actual Q3 21 Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Oct
Slide 23: Marie: Hosting JV Non-GAAP Historical Financials
Marie: Hosting JV Non-GAAP Historical Financials(A) ($ in 000s) (Unaudited) Actual Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Jul 21 Aug 21 Sep 21 Q3 21 Oct 21 Nov 21 Dec 21 Q4 21 FY 21 Jan 22 Feb 22 YTD 22 $0 $104 $245 $349 $481 $672 $602 $1,755 $2,104 $529 $495 $1,024
Slide 24: Marie: Operating Metrics
Marie: Operating Metrics(A) Q1 21 Q2 21(1) Jul 21 Aug 21 Sep 21 Q3 21(2) Oct 21 Nov 21 Dec 21 Q4 21(3) FY 21(4) Jan 22 Feb 22 YTD 22(5) 0.00 1.58 1.49 2.36 5.41 3.09 8.80 10.67 12.45 10.64 7.46 14.75 17.29 16.02 0.00 1.58 1.49 2.04 1.74 1.76 2.50 2.59 4.32 3.14 2.16 6.95 8.79 7.87 Hosted MW (Legacy)
Slide 25: Site Consolidation
Site Consolidation Proprietary BTC generated per day increased by 16% o o February is a 28-day month: 63.32 BTC equivalent mined for 28 days results to 2.26 per day January is a 31-day month: 60.23 BTC equivalent mined for 31 days results to 1.94 per day Under absorbed overhead at Marie negatively i
Slide 26: Consolidated Soluna Computing Non-GAAP Historical Financials
Consolidated Soluna Computing Non-GAAP Historical Financials(A) ($ in 000s) (Unaudited) Revenue (Non-GAAP) Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Prop Mining Hosting Adjusted Cost of Cryptocurrency Revenue 2** (Non-GAAP) Prop Mining Hosting Cash Contribution
Slide 27: Consolidated Soluna Computing Operating Metrics
Consolidated Soluna Computing Operating Metrics(A) Q1 21 Q2 21(1) Jul 21 Aug 21 Sep 21 Q3 21(2) Oct 21 Nov 21 Dec 21 Q4 21(3) FY 21(4) Jan 22 Feb 22 YTD 22(5) 1.63 3.34 3.28 4.13 7.15 4.85 15.01 20.09 24.31 19.80 9.33 30.18 32.85 31.52 1.63 3.34 3.28 3.81 3.48 3.52 8.71 12.01 16.18 12.30 6.39 22.38
Slide 28: Operational Excellence
Operational Excellence The team has successfully ramped two facilities and planned the construction for a third Shareholders have seen how ramp ups are bumpy, issues arise and are resolved rapidly We would specifically like to thank our operations team and some if its members for working above and b
Slide 29: Appendix
Appendix 29
Slide 30: Repeated From Our Earnings Power Illustration
Repeated From Our Earnings Power Illustration(1) Q1-22 (in 000's) Q2-22 Q3-22 Q4-22 FY22 Q1-23 Scenario 1: BTC is $20,000 Earnings Power Illustration: Various BTC Prices Total Revenue Contribution Margin 6,528 (Non-GAAP) Contribution Margin % Run-Rate Contribution Margin 12,062 20,104 46,145 25,393
Slide 31: Our data centers are named after catalyzers
Our data centers are named after catalyzers Renamed to TNT Edith Renamed to Anaconda Sophie Renamed to Python 31 Marie Edith Clarke was a pioneer in electrical engineering & power transmission. She was a first in so many ways. The first woman to earn an MSc degree at MIT in 1919. The first woman emp
Slide 32: Impact of Tornado on December 2021 site-level economics
Impact of Tornado on December 2021 site-level economics Estimate Sophie ($ in 000s) Revenue (Non-GAAP) Prop Mining Hosted JV Cash Contribution Margin Prop Mining Hosted JV (Non-GAAP) Marie Edith Combined Estimate Tornado Estimate Estimate Tornado Estimate Estimate Pro-Forma Dec 21 Impact* Pro-Forma
Slide 33: Consolidated Non-GAAP Historical Financials With Legacy Hosting
Consolidated Soluna Computing Non-GAAP Historical Financials With Legacy Hosting ($ in 000s) (Unaudited) Revenue Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Prop Mining Hosting Adjusted Cost of Cryptocurrency Revenue 1** (Non-GAAP) Prop Mining Hosting Contributio
Slide 34: Consolidated Operating Metrics With Legacy Hosting
Consolidated Operating Metrics With Legacy Hosting Q1 21 Q2 21(1) Jul 21 Aug 21 Sep 21 Q3 21(2) Oct 21 Nov 21 Dec 21 Q4 21(3) FY 21(4) Jan 22 Feb 22 YTD 22(5) 1.63 3.34 3.28 14.32 15.67 11.09 22.21 24.61 27.36 24.73 9.79 31.44 32.85 32.15 1.63 3.34 3.28 3.81 3.48 3.52 8.71 12.01 16.18 12.30 4.79 22.
Slide 35: Marie: Non-GAAP Historical Financials With Legacy Hosting
Marie: Non-GAAP Historical Financials With Legacy Hosting ($ in 000s) (Unaudited) Revenue Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Actual Actual Q1 21 Q2 21 Jul 21 Aug 21 Sep 21 Actual Q3 21 Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estima
Slide 36: Reconciliation of non-GAAP results to nearest comparable GAAP measures
Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures 36
Slide 37: Reconciliation Of Non-GAAP Results: Q1 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q1 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue (GAAP) $891 $104 $0 $0 $995 $0
Slide 38: Reconciliation Of Non-GAAP Results: Q1 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q1 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP) Cost of reve
Slide 39: Reconciliation Of Non-GAAP Results: Q2 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q2 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue (GAAP) $988 $669 $0 $0 $1,657 $
Slide 40: Reconciliation Of Non-GAAP Results: Q2 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q2 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue
Slide 41: Reconciliation Of Non-GAAP Results: Q3 2021 Revenue
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q3 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 41 Edith Marie Sophie Corporate Total MTII Corporate Consolidat
Slide 42: Reconciliation Of Non-GAAP Results: Q3 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q3 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $
Slide 43: Reconciliation Of Non-GAAP Results: Q3 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Q3 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Marie Sophie Corporate
Slide 44: Reconciliation Of Non-GAAP Results: Q4 2021 Revenue
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q4 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 44 Edith Marie Sophie Corporate Total MTII Corporate Consolidat
Slide 45: Reconciliation Of Non-GAAP Results: Q4 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q4 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $2,263 $0 $2,263 Cryptocu
Slide 46: Reconciliation Of Non-GAAP Results: Q4 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Q4 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $2,263 $0 $2,263 Cryptocurren
Slide 47: Reconciliation Of Non-GAAP Results: FY 2021 Revenue
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue FY 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 47 Marie Sophie Corporate Total MTII Corporate Consolidat
Slide 48: Reconciliation Of Non-GAAP Results: FY 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) FY 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $7,196 $0 $7,196 Cryptocurrency revenue (GAAP) $
Slide 49: Reconciliation Of Non-GAAP Results: FY 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) FY 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Marie Sophie Corporate
Slide 50: Reconciliation Of Non-GAAP Results: YTD 2022 Revenue
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue YTD 2022 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 50 Marie Sophie Corporate Total MTII Corporate Consolida
Slide 51: Reconciliation Of Non-GAAP Results: YTD 2022 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) YTD 2022 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $679 $0 $679 Cryptocurrency revenue (GAAP) $336
Slide 52: Reconciliation Of Non-GAAP Results: YTD 2022 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) YTD 2022 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Sophie Corporate
Slide 53: The future of renewable energy is computing.
The future of renewable energy is computing. 53
Slide 54: Learn more at solunacomputing.com
Learn more at solunacomputing.com 54
Soluna Holdings — February 2022 Earnings Presentation on 6ix