Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Q2 2024 Earnings Presentation
41 slides from Soluna's earnings presentation, Aug 16, 2024
Slide 1: 2Q 2024 Results & Business Update
2Q 2024 Results & Business Update August 2024
Slide 2: Preamble
Preamble The following content is completely qualified by the legal disclosures on the slide 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. We operate in a hyper dynamic economic environment. T
Slide 3: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer ing of Reforrr rt port ‘anticipate,” "believe." "could, Testmate" “expect” Tutor” ntends"maye plone epoteral “projec wil 8 to id tall, th backg! conjunction with Soluna filed ces Soluna makes no representation to thi -omplet lustrati imples, opinions, forecast, reports,
Slide 4: 2024 Corporate Focus
2024 Corporate Focus Launch Al We have 2 MW of our Project Dorothy 2 site slated for our Helix Pilot, focused on next generation data centers for Al. To partner with industry leaders to bring this online and create a repeatable blueprint for our new Al business. Optimize Projects Our objective is to
Slide 5: Q2 FY24 Highlights
Q2 FY24 Highlights Strong Revenue Quarter Revenue increased by 362% to $9.7 million in the second quarter of 2024 compared to $2.1 million in the second quarter of 2023. Significant decrease in Operating loss Operating loss significantly improved to $3.7 million, a substantial 48% reduction from the
Slide 6: Q2 FY24 Highlights Continued
Q2 FY24 Highlights Continued... HPE Partnership Soluna has partnered with Hewlett Packard Enterprise ‘ launch oluna sy utilizing coun Cloud, enterprise customers can direct liquid cooling ( and waste-heat recovery. Signed Definitive Power Purchase Agreement with EDF Renewables Project Kati is Soluna
Slide 7: How Soluna Makes Money
How Soluna Makes Money Prop Bitcoin Grid Demand Response Mining Services * Soluna or JV owned Bitcoin mining machines me i ct as behind-thi te * Bitcoin sold daily flexible load for the grid + Soluna provides Managed Infrastructure Services . younkaiae /MWh basis by Utility or Grid Hosting for High
Slide 8: Revenue Quarterly Trend Q2 2023-24
Revenue Quarterly Trend Q2 2023-24 (in 000’s) Includes Revenue % Change Quarter over Quarter Q223 Q3 23 Q423 Qi24 Q224 1 Cryptocurrency Mining Revenue $915 $1,786 $5,105 $6,396 $4,484 I Data Hosting Revenue $1,153 $4,011 $4,745 $5,277 $4,898 I Demand Services Revenue = = $268 $293 Grand Total $2,068
Slide 9: Gross Profit Quarterly Trend Q2 2023-24
Gross Profit Quarterly Trend Q2 2023-24 (in 000’s) i Total Revenue i Total Cost of Revenue = Gross Profit $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 ($390) Q223 Q3.23 Q4.23 Qi 24 Q2.24 ($2,000)
Slide 10: General & Administrative Q2 2023 vs Q2 2024
General & Administrative Q2 2023 vs Q2 2024 Highligs:*- (in 000’s) $5.0 $03 $0.9 es) $4.0 $4.1M $(0.6) $3.0 $2.0 $1.0 $0.0 2923688 Stock-based Compensation Employee-related egal Fees $5.4M 29 24.G8A
Slide 11: Adjusted EBITDA & Revenue
Adjusted EBITDA & Revenue Q2 2023-24 by Quarter (in 000’s) li Revenue i Adjusted EBITDA $14,000 $12,549 $12,000 $10,118 $10,000 $8,000 $6,000 $4,000 $2,000 $o ($2,000) ($1,993) ($4,000) Q223 3223 Q423 Qi24 Q224
Slide 12: Company Overview
D Company Overview
Slide 13: Soluna develops data centers co-located with renewable powerplants
@) Soluna develops data centers co-located with renewable. powerplants, turning their wasted energy into sustainable computing»resources.
Slide 14: Why Soluna
Why Soluna Power producers and computing partners choose Soluna because of our four pillars of expertise TN &N_0N_ ON YY YY YY WY Project Energy Computing Project Development Markets Technology Finance
Slide 15: The Soluna Way
The Soluna Way We tackle wasted energy 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. Source low-cost curtailed power from IPPs Grow Build, own, pipeline operate MDCs with 2-yr ROI
Slide 16: Renewable Energy has a wasted energy problem
Renewable | Energy has a wasted energy problem. \ \ T RENEWABLE COMPUTING
Slide 17: AI is the fastest growing technology today
Al is the fastest Time it took for selected online services to reach one million users growing technology today COMPANY LAUNCHED Netflix 1999 Kickstarter* 2009 Airbnb** 2008 Twitter 2006 Foursquare** 2009 13 months id 2004 Facebook 2008 Dropbox 2008 Spotify 2010 Instagram*** 2022 10 months ChatGPT
Slide 18: AI's hidden challenges
Al’s hidden challenges Alis hungry Als thirsty Al is dirty Al computing’s energy density and space needs exceed current hyperscale data center capabilities. Energy demand for Al is projected to exceed the entire current data center levels. Some estimates put it at 20-30GW. Traditional data centers,
Slide 19: Quote on AI emissions and grid location
single biggest cha 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
Slide 20: The Lifecycle of AI
The Lifecycle of Al Gen Al is batchable: Parts of the Generative Al lifecycle are perfect computing applications for co-location with renewable power plants, because they are inherently batchable. Training ail Anew modelis created from scratch by learning from a large corpus of text. The phase requi
Slide 21: Soluna's Data Center Strategy
q a! — Soluna’s Data dE Biecioss cea Center Strategy Cooling (DLC) Soluna’s Helix Data Centers are @ purpose-built for Al, with a unique access to power. Green Power 6) Zero Water Cc Plug & Play Soluna’s behind-the-meter structure allows flexibility for its proprietary data | centers - drawing power
Slide 22: Operational Highlights 2024
Slide 23: Massive pipeline of wasted renewable energy: 2GW
Slide 24: Key Operating Metrics
Key Operating Metrics 1 NASDAQ SLNH / SLNHP MW MANAGED 75 MW > 291 MW? INSTALLED HASHRATE 2.6 EH/s 1&4 AVERAGE POWER COST* <$28 / MWh ? CURTAILED ENERGY MONETIZED 81,816 MWh? BITCOIN MINERS DEPLOYED ~24,000 1&4 AVERAGE J / TH/s ~26 J / TH/s 1&4 POWER USAGE EFFECTIVENESS (PUE) 1.022
Slide 25: Project Dorothy 1A
Project Dorothy 1A CAPACITY 25 MW INSTALLED HASHRATE 1.0 EH/s? POWER USAGE EFFECTIVENESS 1.012 POWER SOURCE Wind CURTAILED ENERGY CONSUMED 40,080 MWh? ine 30th, 2024 (April 2024 - june 2024) orott MODEL Hosting ENERGIZATION Operational AVERAGE 3-MONTH ANNUAL LCOE* ~$28 / MWh? PARTNER Spring Lane Cap
Slide 26: Project Dorothy 1B
Project Dorothy 1B CAPACITY 25 MW INSTALLED HASHRATE 817 PH/s? POWER USAGE EFFECTIVENESS 1.012 POWER SOURCE Wind CURTAILED ENERGY CONSUMED 38,831 MWh? Nt! une 30th, 2024 2024 - june 2024) jon of the Dorothy 18 project to June 2024 MODEL Prop Mining ENERGIZATION Operational AVERAGE 3-MONTH ANNUAL LCO
Slide 27: Project Sophie
(,-\ Project Sophie éh 25 MW Hosting 778 PH/s? Operational 1.032 ~$26 / MWh? Hydro/Gri d None
Slide 28: Project Pipeline
D Project Pipeline
Slide 29: Project Dorothy
Project Dorothy 2 CAPACITY MODEL 48 MW Bitcoin Hosting POWER SOURCE ENERGIZATION Wind Mobilization PARTNER AVERAGE ANNUAL LCOE Spring Lane ~$30 /MWh
Slide 30: Project Kati
ce) Project Kati a CAPACITY 166 MW POWER SOURCE Wind PARTNER TBD MODEL Hosting & Al ENERGIZATION PPA & Development ~$30 /MWh
Slide 31: We have a growing pipeline of projects
We have a growing pipeline of projects Data 25MW > 100 MW D> 166MW Pp 2GW + long-term Pole Sophie Dorothy Kati pipeline with Operating 5OMW Design & large IPPs and Operating Development* infrastructure funds in the US Powered by ly ¥*K x¥*K and beyond i) l\ “Design — design and development activitie
Slide 32: Welcome to Renewable Computing
SOLUNA WELCOME TO ep} =) Ni =. V,\ ‘COMPUTING Learn more at solunacomputing.com
Slide 33: Appendix
DY Appendix
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet (1)Prior period have been a reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023 (Dollars in thousands, except per share) Assets Current Assets: ash Restricted cash = 2 1d SO exps as of June 30, 2024 and December
Slide 35: Consolidated Balance Sheet
Consolidated . Balance Sheet “seer, Preferred Stock, par wale $0.001 per 545 and (1)Prior period results have been adjust 3,061,2: i as of June 30, 2024 and December Fellect the Reverse Stock Spltof the 31, 2023 i 3 Common Stock at a ratio of 1-for-25 that i $ hare, authorized 187,500; b : : ecame e
Slide 36: Consolidated Statement of Operations
Consolidated sos ton @ollars in thousands, except per share) 2024 2023 2024 2023 m n f Cryptocurrency mining revenue $ 4484 915 $ 10,880 $ 3,711 Data hosting revenue 4,398 1,153 10,176 : Demand response service revenue 293 = 1,168 Total revenue 9,675 2,068 22,224 Operations ———————— exclusive of dep
Slide 37: Consolidated Statement of Cash Flows
Consolidated .... see aed — 2023 Statement of ee aaa | aaa Cash Flows —— ain tic ion expense 3,091 1,179 Amortization expense 4,743 4,741 Stock-based compensation 2,029 11 ferred income taxes (1,259) (1,094) Impairment on fixed assets 130 377 Provision for credit losses 244 = Amortization of operati
Slide 38: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Investing Activities Purchases of property, plant, and equipment es of i ible assets Proceeds from disposal on property, plant, and equipment Deposits of equipment, net Net cash used in investing activities Financing Activities Proceads i Proceeds from notes and
Slide 39: Adjusted EBITDA Prior Year Comparison
Prior Year Comparison . Adj u sted Three Months Ended (Dollars in thousands) June 30, EBITDA = $ (9,145) $ (9,257) Interest expense 449 486 Income tax benefit (649) (547) Depreciation and amortization 3,909 2,918 EBITDA (5,436) (6,400) Adjustments: Non-cash items Stock-based compensation costs 1,368
Slide 40: Adjusted EBITDA Quarterly FY 2023-24
FY 2023-24 Three months — Three months Three months Threemonths = Three months ended June — ended September endedDecember ended March _ended June 30, k Q a rte r oolars in thousands) 30,2023 30,2023 31,2023 31,2024 2024 - Netloss S$ 25) $ 6016) $ (4.998) $ G97) S$ 0.145) Ad justed Interest expense 4
Slide 41: Connect With Us
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