Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — January 2022 Earnings Presentation
50 slides from Soluna's earnings presentation, Feb 18, 2022
Slide 1: January 2022 Flash
HOLDINGS COMPUTING January 2022 Flash February 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 January 2022 results in detail 9
Slide 10: Business Update
Business Update 10
Slide 11: Our Targets For 2022
Our Targets For 2022 Our Energized Capacity Ramps Over 150 MW Our Hashrate Scales Over 3 EH üw 11 Note: 2022 Earnings Power Illustration released on January 19th, 2022. Not updated since original publication. Press release and presentation can be viewed here.
Slide 12: Energized capacity and hashrate ramp
We have now energized 52 MW Our hashrate continues the ramp to 1 EH/s Remainder of growth will be Prop Mining increasing by ~59% Our Hosting JV commitment is fulfilled 12 Note: Management Estimate March 31, 2022: +/- 30 days
Slide 13: All plugs and infrastructure are now ready
All plugs and infrastructure are now ready Ramped up and shakedown completed for installation of compute to achieve 1 EH/s Transformer upgrades completed at Marie No material shutdowns planned for active sites Roll-off of Legacy hosting at Marie completed on January 24th, about 60 days early Ready t
Slide 14: Business Summary January 2022
Business Summary January 2022 BTC Equivalent mined increased 11% MoM Despite a 17% decrease in average BTC price between December ($49,263) and January ($41,114) If planned transformer upgrades were excluded, BTC Equivalent mined would have increased 20% MoM Marie scaled to 25 MW on February 10th Br
Slide 15: Important developments across our facilities
Important developments across our facilities We continue to optimize equipment mix at this mature facility Edith 9.29 PH/s as of February 8th Scaled up to 25 MW and fully energized on December 31st, 2021 Sophie 235.06 PH/s as of February 8th. Site continues ramp We will continue plugging-in miners u
Slide 16: A closer look at January
A closer look at January ü Marie Transformer upgrades have been completed ü Marie site is ready to take in equipment up to 25 MW If planned transformer upgrades at Marie were excluded, revenue and contribution margin for January would have been higher by ~7% Marie Combined Combined Transformer Pro-
Slide 17: January 2022 Flash
January 2022 Flash 17
Slide 18: Consolidated Soluna Computing Non-GAAP Historical Financials
Consolidated Soluna Computing Non-GAAP Historical Financials(A) Pro-Forma estimate excludes impact of Marie transformer upgrades which are now complete Estimate ($ in 000s) (Unaudited) Revenue (Non-GAAP) Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Prop Mining Hos
Slide 19: 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 1.63 3.34 3.28 4.13 7.15 4.85 15.01 20.09 24.31 19.80 9.33 30.18 1.63 3.34 3.28 3.81 3.48 3.52 8.71 12.01 16.18 12.30 6.39 22.38 Hosted MW (Legacy) - - -
Slide 20: Edith: Non-GAAP Historical Financials
Edith: Non-GAAP Historical Financials ($ in 000s) (Unaudited) Actual Actual Actual 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 Revenue 891 988 277 345 284 905 324 317 222 864 3,648 150 Electricity/Direct Costs*
Slide 21: Sophie: Non-GAAP Historical Financials
Sophie: Non-GAAP Historical Financials ($ in 000s) (Unaudited) Estimate Estimate Estimate Estimate Estimate Oct 21 Nov 21 Dec 21 Q4 21 FY 21 Jan 22 Revenue 543 1,048 1,181 2,772 2,772 1,294 Electricity/Direct Costs* 182 159 385 726 726 349 77 $258 27 $186 139 $524 242 $968 265 $991 57 $405 Overhead
Slide 22: Marie: Non-GAAP Historical Financials
Marie: Non-GAAP Historical Financials(A) Pro-Forma estimate excludes impact of Marie transformer upgrades which are now complete Estimate ($ in 000s) (Unaudited) Revenue (Non-GAAP) Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Actual Q1 21 Actual Q2 21 Estimate Est
Slide 23: Marie: Hosting JV Non-GAAP Historical Financials
Marie: Hosting JV Non-GAAP Historical Financials(A) Pro-Forma estimate excludes impact of Marie transformer upgrades which are now complete Estimate ($ in 000s) (Unaudited) Revenue (Non-GAAP) Electricity/Direct Costs* Overhead Costs Adjusted Cost of Cryptocurrency Revenue 2** (Non-GAAP) Jul 21 Aug 2
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 0.00 1.58 1.49 2.36 5.41 3.09 8.80 10.67 12.45 10.64 7.46 14.75 0.00 1.58 1.49 2.04 1.74 1.76 2.50 2.59 4.32 3.14 2.16 6.95 Hosted MW (Legacy) - - - - - - - - - - - - Hosted JV
Slide 25: Appendix
Appendix 25
Slide 26: Repeated From Our Earnings Power Illustration
Repeated From Our Earnings Power Illustration(1) (in 000's) Q1- 22 Q2- 22 Q3- 22 Q4- 22 FY22 Q1- 23 Scenario 1: BTC is $20,000 Earnings Power Illustration: Various BTC Prices Total Revenue 6,528 7,450 12,062 20,104 46,145 25,393 Contribution Margin (Non- GAAP) 3,437 3,932 7,344 13,372 28,085 17,483
Slide 27: Our data centers are named after catalyzers
Our data centers are named after catalyzers Renamed to TNT Edith Renamed to Anaconda Sophie Renamed to Python 27 Marie Edith Clarke was a pioneer in electrical engineering & power transmission. She was a first in so many ways. The first woman to earn an MSc degree at MIT in 1919. The first woman emp
Slide 28: Impact of Tornado on December 2021 site-level economics
Impact of Tornado on December 2021 site-level economics Estimate Sophie ($ in 000s) Revenue (Non- GAAP) Prop Mining Hosted JV Cash Contribution Margin (Non- GAAP) Prop Mining Hosted JV Marie Edith Combined Estimate Tornado Estimate Estimate Tornado Estimate Estimate Pro- Forma Dec 21 Impact* Pro- Fo
Slide 29: 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 30: Consolidated Operating Metrics With Legacy Hosting
Consolidated Operating Metrics With Legacy Hosting Key Operating Metrics: Avg. MW Deployed Prop Mining 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 1.63 3.34 3.28 14.32 15.67 11.09 22.21 24.61 27.36 24.73 9.79 30.57 1.63 3.34 3.28 3.81 3.48 3.52 8.71
Slide 31: Marie: Non-GAAP Historical Financials With Legacy Hosting
Marie: Non-GAAP Historical Financials With Legacy Hosting ($ in 000s) (Unaudited) Actual Q1 21 Actual Q2 21 Jul 21 Aug 21 Sep 21 Actual Q3 21 $104 $668 $217 $1,021 $981 104 668 217 494 0 0 0 527 $23 $190 $76 23 190 0 0 $0 Prop Mining Hosting Revenue Prop Mining Hosting Electricity/Direct Costs* Prop
Slide 32: Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures
Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures 32
Slide 33: Reconciliation Of Non-GAAP Results: Q1 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q1 2021 Soluna Computing ($ 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 $0
Slide 34: Reconciliation Of Non-GAAP Results: Q1 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q1 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue
Slide 35: Reconciliation Of Non-GAAP Results: Q2 2021 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q2 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocu
Slide 36: Reconciliation Of Non-GAAP Results: Q2 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q2 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP) Cost of reve
Slide 37: 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) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 37 Marie Sophie Corporate Total MTII Corporate Consolidat
Slide 38: 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 Product revenue (GAAP) Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocu
Slide 39: Reconciliation Of Non-GAAP Results: Q3 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Q3 2021 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Marie Sophie Corporate
Slide 40: 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) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 40 Marie Sophie Corporate Total MTII Corporate Consolidat
Slide 41: 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 Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $2,263 $0 $2,263 Cryptocurrency revenue (GAAP) $
Slide 42: 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) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Marie Sophie Corporate
Slide 43: 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) Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 43 Edith Marie Sophie Corporate Total MTII Corporate $0 $0 $0 $
Slide 44: 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 $0 $0 $0 $0 $0 $7,196 $0 $7,196 Cryptocurrency revenue (GAAP) $3,648 $7,952
Slide 45: Reconciliation Of Non-GAAP Results: FY 2021 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) FY 2021 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate $0 $0 $0 $0 $0 $7,196 $0 $7,196 Cryptocurrency revenue (G
Slide 46: Reconciliation Of Non-GAAP Results: January 2022 Revenue
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue January 2022 Soluna Computing ($ in 000s) (Unaudited) Edith Product revenue (GAAP) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) 46 Marie Sophie Corporate Total MTII Corporate Conso
Slide 47: Reconciliation Of Non-GAAP Results: January 2022 Adjusted Cost of Revenue
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) January 2022 Soluna Computing ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated $0 $0 $0 $0 $0 $178 $0 $178 Cryptocurrency revenue (GAAP)
Slide 48: Reconciliation Of Non-GAAP Results: January 2022 Contribution Margin
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) January 2022 Soluna Computing ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Marie Sophie Corpo
Slide 49: The future of renewable energy is computing.
The future of renewable energy is computing. 49
Slide 50: Learn more at solunacomputing.com
Learn more at solunacomputing.com 50