Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Conference Presentation (February 2024)
36 slides from Soluna's conference presentation, February 2024
Slide 1: The future of renewable energy is computing.
The future of renewable energy is computing. Nasdaq: SLNH 1
Slide 2: Disclaimers
Disclaimers 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, plans to develop
Slide 3: Our Business, Our Projects, Our Promise
OUR BUSINESS OUR PROJECTS OUR PROMISE Soluna harnesses the Our data centers are Our computing projects power of computing to 18% greener return capital address a huge problem for renewable energy than typical data centers invested in & ready to drive under 2.5 years wasted energy. sustainable AI 3
Slide 4: All forms of renewable energy are growing faster than ever
FORECAST All forms of 5000 renewable 4500 energy are 4000 growing faster GW Installed Worldwide 3500 than ever 3000 2500 Hydro Ocean 2000 Bioenergy Geothermal 1500 PV Utility-Scale Systems PV Distributed Systems 1000 Concentration Solar Power Offshore Wind 500 Onshore Wind Renewables Dedicated to H2
Slide 5: Not all energy produced by renewable plants can be used
Not all energy produced by renewable plants 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 5
Slide 6: The future of renewable energy is computing…
The future of renewable energy is computing… 6
Slide 7: If it's used to perform…
If it’s used to perform… Artificial Machine Natural language Bitcoin Intelligence learning processing Mining There is a growing demand for computing power that will account for 20% of global energy consumption by 2030. What if we could build data centers that could buy excess renewable energy that w
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
Slide 9: Excess energy from renewable sources to High Performance Computing
Excess energy from High Performance renewable sources Computing 9
Slide 10: Company Overview
Company Overview 10
Slide 11: Soluna develops data centers co-located with renewable power plants
Soluna develops data centers co-located with renewable power plants, turning their wasted energy into sustainable computing resources.
Slide 12: Why Soluna
Why Soluna Power producers and computing partners choose Soluna because of our four pillars of expertise Project Energy Computing Project Development Markets Technology Finance 12
Slide 13: 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. Energy that would MDC* Energy that is sourced have gone to grid from the grid in excess without the load. SUBTRACTIVE GRID of plant production. ENERGY ENER
Slide 14: 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 14
Slide 15: Our Data Centers Are More Productive Batteries
Our Data Centers Purpose-built to efficiently convert curtailed renewable Are More Productive energy into high performance Batteries 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 16: 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 17: Our data centers are 18% greener than typical data centers
Our data centers Net Carbon Emissions April 2022 – March 2023 are 18% greener than typical data 180,000 centers Emissions (MT) /Year 162,228 160,000 -18% 140,000 132,834 120,000 ATC Hub West Project Dorothy (typical data center) (Soluna data center) 100,000 Source: RESurety 17
Slide 18: How Soluna Makes Money
How Prop Bitcoin Grid Ancillary Soluna Mining Services Makes • Soluna or JV owned Bitcoin mining machines • Bitcoin sold daily • Compensation to act as behind-the-meter flexible load for the grid Money • Soluna provides Managed Infrastructure Services • Paid on $ / MWh basis by Utility or Grid Opera
Slide 19: Renewable Computing Cloud
Renewable Computing Renewable AI needs Sustainable. Scalable. AI. Energy has a more wasted energy sustainable problem energy There is a growing demand for computing power that will account for 20% of global energy consumption by 2030. CLOUD TM Sustainable Infrastructure for Scalable AI Generative Ma
Slide 20: AI is the fastest growing technology today
AI is the fastest growing Time it took for selected online technology today services to reach one million users COMPANY LAUNCHE TIME 1 YEAR 2 YEARS 3 YEARS D 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
Slide 21: AI's hidden challenges
AI’s hidden challenges AI is hungry AI is thirsty AI is dirty AI computing’s energy Traditional data centers, Traditional data centers are density and space needs particularly those utilized for responsible for 2% of overall exceed current hyperscale AI, exhibit substantial water U.S. greenhouse gas
Slide 22: Using renewable energy grids for training neural networks
“Using renewable energy grids for training neural networks is the single biggest change that can be made. It can make emissions vary by a factor of 40, between a fully renewable grid and a full coal grid.” - Alexandra Luccioni, Hugging Face 22
Slide 23: 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 24: Soluna's Helix Data Centers are designed for AI
Soluna’s Helix Data Direct Liquid Centers are designed Cooling for AI Green Power Purpose-built to efficiently convert Plug & Play curtailed renewable energy into batchable computing Scalable Zero Water 24
Slide 25: A massive pipeline of wasted renewable energy for high performance computing
We have a massive pipeline of wasted renewable energy to power high performance computing. 25
Slide 26: Financial Highlights
Financial Highlights 26
Slide 27: Data Center Economics | Bitcoin Hosting
Data Center Economics | Bitcoin Hosting Compute 48.0 $30 3.4x 3.5x (MW) Construction 6 months – 50% complete 3.0x $25 2.8x timeline 12 months – 100% Complete $ USD millions 2.5x Total Capex $21.6mm $20 $21 2.1x 2.0x Run Rate 1.6x $14.0mm $15 EBITDA 1.5x $14 $14 $14 $14 $14 MOIC / IRR 3.4x / >45% $10
Slide 28: Data Center Economics | Generative AI
Data Center Economics | Generative AI $50 Compute 1.0 6.0x (MW) 6 months – 25% complete 5.0x Construction $40 5.0x timeline 9 months – 100% Complete $ USD millions Total Capex $29.3mm $30 4.0x $33 $33 $33 $33 3.8x $29 Run Rate 3.0x $33mm EBITDA $20 2.7x MOIC / IRR 4.96x / >50% 2.0x $10 $13 1.6x Payb
Slide 29: Key Operating Metrics
Key Operating Metrics1 NASDAQ MW MANAGED INSTALLED HASHRATE SLNH / SLNHP 75 MW 291 MW3 2.6 EH/s2 AVERAGE POWER COST CURTAILED ENERGY MONETIZED POWER USAGE EFFECTIVENESS (PUE) <$30 / MWh 4,003 MWh 1.01 BITCOIN MINERS DEPLOYED AVERAGE J / TH/s 23,6552 ~30 J / TH/s (1) All numbers are as of October 31s
Slide 30: We have a growing pipeline of projects
We have a growing pipeline of projects Data 25MW 100MW 166MW 2GW+ long-term Centers & Sophie Dorothy Kati pipeline with Pipeline Operating 50MW Design & large IPPs and Operating Development* infrastructure funds in the US Powered by and beyond *Design – design and development activities with the IPP
Slide 31: 2023 Corporate Focus On Track
2023 Corporate Focus On Track 2023 Energize Cash Expand Grow Dorothy Flow+ Flagship Pipeline Shift flagship site from Sign 50MW of hosting at Target the development Sign term sheets for construction to operations. Dorothy and Sophie, of up to 50 MW of 100MW of additional Energize 50MW (1A and ramp 2
Slide 32: Quarterly Financials YTD 2023
Quarterly Financials YTD 2023 Certain prior quarter amounts have been reclassified for consistency in the current quarter presentation. 32
Slide 33: Quarterly Financials YTD 2023
Quarterly Financials YTD 2023 $4,500 $4,000 $3,500 $3,000 $ millions Cryptocurrency $2,500 Mining Revenue $2,000 Data Hosting $1,500 Revenue $1,000 $500 $0 Q1 ‘23 Q2 ‘23 Q3 ‘23 33
Slide 34: 2024 Is The Year of AI for Soluna
2024 Is The Year of AI for Soluna Starting with Helix at Project Dorothy 2 34
Slide 35: The future of renewable energy is computing.
The future of renewable energy is computing. 35
Slide 36: Connect With Us
Connect With Us X/Twitter LinkedIn Newsletter @SolunaHoldings Soluna Holdings bit.ly/solunasubscribe 36
Soluna Holdings — Conference Presentation (February 2024) on 6ix