Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Corporate Update (December 2022)
56 slides from Soluna's corporate update, Dec 9, 2022
Slide 1: Soluna Holdings December 2022
SOLUNZ Gta HOLDINGS COMPUTING December 2022
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 princ
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
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 Alignment of Interests & Transparency Private equity firm owns 28%!) High Velocity Execution Senior Brookstone personnel involved in active executive capacity Focus on Return of Invested Capital (ROIC) & Capital Discipline Da Ne Long-Term Strategy Beyond Crypto (1) Catculate
Slide 7: Excess energy from renewable sources
Excess energy from renewable sources We buy curtailed energy from renewable power plants and convert it to clean, low-cost global computing. ‘ Batch-oriented Computing like cryptocurrency mining
Slide 8: The opportunity beyond crypto
The $1082. opportunity : beyond crypto is Graphics/video pr essing
Slide 9: Agenda
Agenda In this presentation, we will be covering the following items: Business Update Oy rw) 7X, Flash October RD 2022 Results
Slide 10: Business Update
Slide 11: Soluna Status Report
Soluna Status Report Dorothy Energizing Status o Nearing completion of planning phase of ERCOT approval process providing line of sight to potential energization in early February / early March o 5OMW doubles Soluna’s operating footprint bringing the organization to scale, opportunity to expand to L
Slide 12: Dorothy Energizing Status
Dorothy Energizing Status Nearing On Track for Completion of Energizing in First Planning Phase Quarter of 2023 Planning D> Modeling « Part of ERCOT approval ¢ Typically 90 days or less + Testing and telemetry is process focused on grid . conducted stability and compliance. * Once Soluna enters this
Slide 13: Illustrative Dorothy Earnings Potential
Illustrative Dorothy Earnings Potential XPs Illustrative Monthly P&L ($ in 000s) Dorothy 1A 25MW Dorothy 1B 25MW Spring Lane (32% Owner) 100% Owner 100% Hosting* 50%/50% 100% Prop 100% Hosting* 50% / 50% 100% Prop Cash Inflows 1,098 1,433 1,767 1,098 1,433 1,767 (-) Power Costs (641) (641) (641) (64
Slide 14: Illustrative Dorothy Earnings Potential
Illustrative Dorothy Earnings Potential S19s Illustrative Monthly P&L ($ in ‘000s) Dorothy 1A 25MW Spring Lane (32% Owner) Dorothy 1B 25MW 100% Owner 100% Hosting 50% / 50% 100% Prop 100% Hosting 50% / 50% 100% Prop Cash Inflows 1:405 1,206 1,306 1,105 1,206 1,306 (-) Power Costs (641) (641) (641) (
Slide 15: Operational Efficiencies - Soluna outperforms hashprice declines
Operational Efficiencies - Soluna outperforms hashprice declines Percent Decline 5.4% 4.5% Relative Outperformance -9.9% October Revenue Luxor Hashprice Monthly Average * (Non-GAAP) is * Luxor hashprice index ($ / PH / Day) — accounts for changes in Bitcoin price as well as changes in network hashra
Slide 16: Power Cost Update
Power Cost Update Updates on Sophie and Marie FUEL COST ADJUSTMENT (“FCA”) SINCE JUNE Power Costs Mantl GAgiBs June 2.704 > October FCA of 2.992 cents per kWh represents a 33% decline from August FCA July I 3.073 43% > Based on discussions with industry sources November FCA anticipated to decrease 6
Slide 17: Illustrative Cash Contribution Impact from Potential Power Cost Declines
Illustrative Cash Contribution Impact from Potential Power Cost Declines in Nov. / Dec. Potential power cost declines in November and December could represent $50 - $150 thousand in incremental Cash Contribution Margins* Decrease in Power Costs (S in '000s) 5% 10% 15% October Adj. Cash Contribution
Slide 18: Facility Results Review
Facility Results Review > We will review each facility > Then look at the consolidated results Oe es.
Slide 19: October Business Summary
September Business Summary B Flat BTC Production Despite Volatile Market o BTC equivalent mined per day only decreased 1% despite average hashprice* declining 10% from September to October o Peak hashrate remained around 1 EH/s ZX\ Cash Contribution Margins Expected to Improve in November and Decemb
Slide 20: Path to 2.5 EH/s Scale
Path to 2.5 EH/s Scale Consolidated Hashrate (SHA-256, PH/s) Subject to Project Finance Process + Ercot 2,589 1,789 989 897 nea 876 856 894 220 ean 714 733 567 SIG 608 613 636 719 316 03 312 364 439 452 519 126 = 277 255 252 257 235 215 288 263 283 270 Oct 2021 Nov 2021 Dec2021 Jan2022 Feb 2022 Mar
Slide 21: Sophie
Sophie ‘2 > Average September PH/s increased by 2% to 384.9 PH/s versus September PH/s of 377.0 > Adjusted Cash Contribution Margin (Non-GAap) in October was $241 thousand versus $324 thousand in September o The 26% decrease in Cash Contribution Margin was due to a 3% decline in revenue, a 10% incre
Slide 22: Sophie: Non-GAAP Historical Financials
Sophie: Non-GAAP Historical Financials ($ in 000s) (Unaudited) Actual | Actual Actual Actual Actual | Estimate [Estimate 421 | FY21 | Jan22_ Feb22 Mar22 | Q122 | Apr22_ May22 Jun22 | Q222 | Jul22_Aug22_ Sep22 | Q322 | Oct22 | YTD 22 Revenue 2772 | 2.772 1,294 1,132 1,382 3,808 1,634 1,310 1,077 | 4,
Slide 23: Marie
Leg aK Marie > Average hashrate in October increased to 534.8, compared to 517.1 in September o The 3% increase was in part due to reduced TVA curtailments and cooler temperatures improving hash rate conditions o Average prop hashrate remained above 250 PH/s > Cash Contribution Margin in October was
Slide 24: Marie: Non-GAAP Historical Financials
Marie: Non-GAAP Historical Financials) ($ 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 Margin (Non-GAAP) Prop Mi
Slide 25: Marie: Operating Metrics
Marie: Operating Metrics‘) Key Operating Metrics: 92 21 | g3 217] 4 21] Fy 21% | Qi 22] Apr22_May22 Jun 22 [Q222] Jjul22 Aug22 Sep 22 [Q3 22] oct 22 | Yrp 22! ‘Avg. MW Deployed 15s | 309 | 1064 | 746 | 1588 | 1459 1920 1791 | 1723 | 1809 1756 1849 | 1805 | 1846 | 1720 Prop Mining 158 | 176 | 314 | 2
Slide 26: Site Consolidation
Site Consolidation > Average BTC mined declined by 1% versus September > Average hashrate set a new monthly record of 919.7 PH/s, previous high of 896.62 achieved in May 2022 - Average hashrate increased 3% from September > Cash Contribution margins remained healthy but declined from September as a
Slide 27: Consolidated Soluna Computing Non-GAAP Historical Financials
Consolidated Soluna Computing Non-GAAP Historical Financials“) Excludes ~$276k and ~$338k of power costs which are passed directly to hosting customer in September and October, respectively ($ in 000s) (Unaudited) Actual | Actual | Actual | Actual | Actual ‘Actual Actual Estimate [Estimate g221 | 93
Slide 28: Consolidated Soluna Computing Operating Metrics
Consolidated Soluna Computing Operating Metrics‘) Key Operating Metrics: Q2217| Q3 217] Q4 219] FY 217 [QU229] Apr22 May22_Jun22 [Q222] Jul22 Aug22 Sep 22 [Q3227| Oct22 [YTD 22% ‘Avg. MW Deployed 334 | 485 | 1980 | 933 | 3117 | 3148 3654 3421 | 3407 | 3578 3515 3577 | 3557 | 3449 | 3333 Prop Mining
Slide 29: Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures
Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures
Slide 30: 2022 October YTD GAAP Revenue to Non-GAAP Revenue
2022 October YTD - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) YTD October 2022 Soluna Computing Edith Marie Sophie Dorothy Total $1,163 $12,973 $11,869 $o
Slide 31: 2022 October YTD Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 October YTD - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GA, YTD October 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $1,163 $12,973 $11,869 $o $26,004 Cos
Slide 32: 2022 October YTD - Reconciliation Of Non-GAAP Results
2022 October YTD - Reconciliation Of Non-GAAP Results Contribution Margin & Cash Contribution Margin (Non-GAAP) YTD October 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $1,163 $12,973 $11,869 $0 $26,004 Cost of cryptocurrency revenue (G
Slide 33: 2022 Q3 GAAP Revenue to Non-GAAP Revenue
2022 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) Q3 2022 Soluna Computing Edith Marie Sophie Dorothy Total $226 $2,977 $3,170 0) $6,372 0) 0) 0 0 0 $2
Slide 34: 2022 Q3 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q3 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $226 $2,977 $3,170 so $6,372 Cost of cryptocurrency r
Slide 35: 2022 Q3 - Reconciliation Of Non-GAAP Results
2022 Q3 - Reconciliation Of Non-GAAP Results Contribution Margin & Cash Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Cryptocurrency revenue (GAAP) Cost of cryptocurrency revenue (GAAP) Depreciation Project Equipment Repairs Contribution Margin (Non-GAAP)* plus Prepaid Lease Cost plus Legac
Slide 36: 2022 Q2 GAAP Revenue to Non-GAAP Revenue
2022 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) Q2 2022 Soluna Computing Edith Marie Sophie Dorothy Corporate| Total $418 $4,236 $4,022 $o so $8,676
Slide 37: 2022 Q2 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q2 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy _ Corporate| Total Cryptocurrency revenue (GAAP) $418 $4,236 $4,022 so $0 $8,676 Cost of
Slide 38: 2022 Q2 - Reconciliation Of Non-GAAP Results
2022 Q2 - Reconciliation Of Non-GAAP Results Reconcilation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin Q2 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Corporate} Total Cryptocurrency revenue (GAAP) $418 $4,236 $4,022 $o 0) $8,676 Cos
Slide 39: 2022 Q1 GAAP Revenue to Non-GAAP Revenue
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q1 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 so $9,316 less Legacy Hosting Revenue 0 52 0 0) 52 Revenue (Non-GAAP)
Slide 40: 2022 Q1 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q1 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $o $9,316 Cost of cryptocurrency
Slide 41: 2022 Q1 Revenue and Cost of Revenue to Contribution Margin
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin Q1 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 0) $9,316 Cost of crypto
Slide 42: 2021 FY GAAP Revenue to Non-GAAP Revenue
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) FY 2021 Soluna Computing Edith Marie Sophie Corporate Total $3,648 $7,925 $2,772 $o $14,345 0 1335 0
Slide 43: 2021 FY Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) FY 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $o $14,345 Cost of cryptocurre
Slide 44: 2021 FY Revenue and Cost of Revenue to Contribution Margin
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) FY 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $o $14,345
Slide 45: 2021 Q4 GAAP Revenue to Non-GAAP Revenue
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q4 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $o $8,569 less Legacy Hosting Revenue 0 579 0 0 579 Revenue (Non-GAAP
Slide 46: 2021 Q4 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q4 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $o $8,569 C cryptocurrency reven
Slide 47: 2021 Q4 Revenue and Cost of Revenue to Contribution Margin
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Q4 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $o $8,569 Cos
Slide 48: 2021 Q3 GAAP Revenue to Non-GAAP Revenue
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q3 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total MTIl Corporate | Consolidated Product revenue (GAAP) $o $o $o $o $o $1,949 $o $1,949 Cryptocurrency revenue (GAAP) $90
Slide 49: 2021 Q3 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) (Sin 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 50: 2021 Q3 Revenue and Cost of Revenue to Contribution Margin
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP)
Slide 51: 2021 Q2 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) (S in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 52: 2021 Q2 Revenue and Cost of Revenue to Contribution Margin
2021 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) (S in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP) Cost of revenue (GAAP) Depr
Slide 53: 2021 Q1 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 54: 2021 Q1 Revenue and Cost of Revenue to Contribution Margin
2021 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP) Cost of revenue (GAAP) Depr
Slide 55: The future of renewable energy is computing.
The future of renewable energy Is computing.
Slide 56: Learn more at solunacomputing.com
:GAWATT Learn more at solunacomputing.com a ae peg tere = a 7