Soluna Holdings, Inc. · NASDAQ:SLNH

Soluna — Corporate Update (December 2021)

50 slides from Soluna's corporate update, Dec 17, 2021

1. Slide 1: Soluna Computing November/December 2021

   SOLUN- | S$ LUN ToMPUTING November December 2021

2. Slide 2: Preamble

   Preamble D- 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 D- The discussion is in line with our pri

3. 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

4. Slide 4: Legal Disclosure & Disclaimer

   Legal Disclosure & Disclaimer “The material inthis presentation has been prepared by Soluna ands general background information about Sluna's activi, curent as atthe date ofthis presentation ands provided for information purposes only It shouldbe ead in conjunction with Soluna's periodic and catinuo

5. Slide 5: Legal Disclosure & Disclaimer

   Legal Disclosure & Disclaimer Use of Projections and lilustrations 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

6. Slide 6: Key Operating Principles

   Key Operating Principles Alignment of Interests & Transparency Pate equity fm owns 30%" High Velocity Execution Serior Brookstone personnel involved in fete exceutve copscty Focus on Return of Invested Capital (ROIC) & Capital Discipline Long-Term Strategy Beyond Crypto

7. Slide 7: We buy curtailed energy from renewable power plants

   & ais Excess energy from renewable sources 4 s é . We buy ¢urtailed* energy from renewable power * plants and convert it to clean, low-cost global computing. like cryptocurrency mining

8. Slide 8: The opportunity beyond crypto

   The sade ae opportunity beyond crypto is Graphics/vided p $40B Scientific'reséal

9. Slide 9: Agenda

   Agenda In this presentation, we will be covering the following items: usiness Update o fy November results ZG in detail

10. Slide 10: Business Update

    LUN- VAVAYAVAVAY AREAININING

11. Slide 11: We are scaling and on track to reach exahash per second

    We are scaling and on track to reach 1 exahash per second.

12. Slide 12: Key milestones in November

    Key milestones in November We expect to hit the 722 PH/s'!) target +/- 30 days from our original timeline D> Change due to supply chain issues D> Currently at 623 PH/s (December 9") We expect to beat our target of 912 PH/s by end of Q1 202201) D We expect to beat that with over 1 EH/s We expect to h

13. Slide 13: Our hashrate continues the ramp to EH/s

    Our hashrate continues the ramp to 1 EH/s Consolidated Hashrate (SHA-256, PHI) p~ Roope 1 willbe Prop Mining 1 1 increasing by ~108% (Gur 500 Bus Fisting > 1 Sitar is pare fulfilled e = 8 a Eee ‘Apr2021 May2021 Jun 2021 July2021. Aug 2021 Sep 2021 Oct 2021. Nov2021_ Dec 9, 2021 Mar 31, 2022 Hosted V

14. Slide 14: Our cash contribution margin run-rate is $23.3 Million

    Our cash contribution margin run-rate is $23.3 Million (S in 000s) Revenue (Non-GAAP) Cash Contribution Margin (Non-GAAP) Cash Contribution % Estimate Nov 2021 $2,632 $1,943 74% Yearly Run-Rate $31,583 $23,311 74%

15. Slide 15: Our financial results will accelerate over the next quarter

    Our financial results will accelerate over the next quarter 00) November 2021 Monthly At 1 EH/s (Estimate) (titration) 1,000 $3,358 $1943 Caen contbion Margin Canclsted Hacrate cam Conibaton Margin Console Hachato (Non-GAAP) te aPeetng AeLENs (9hA256 PH At Bat

16. Slide 16: Our cash contribution margin grew 35% in November

    Our cash contribution margin grew 35% in November Annualized Cash Contribution Margin (Non-GAAP) ‘| il | I il [ | | Jan2L Feb21— Mar21_—Apr21 May21—Jun21Jul21_ Aug? Sep21. Oct21"—Nov2i" (Sin 0003) ete yon ees rth re nd gees Yom Lec sng ener cnn os ety a or Pepi ae Cos a ear Sar Ge el eg a a ee feo a

17. Slide 17: Let's do some calculations on our prop mining business

    Let’s do some calculations on our prop mining business...

18. Slide 18: Prop Mining yearly revenue run-rate of $54 Million

    At 700 PH/s our estimate of Prop Mining could have a yearly revenue run-rate of $54 Million (Sincons) Reference Consolidated Prop Mining Hashrate (Dec Sth, 2021) (SHA-256, PHis} 337 a} Average Prop Mining Daily Revenue (Dec 1st - Dec 7th, 2023) seo by Discount (Management Estimate) 20% (9 Discounted

19. Slide 19: Prop Mining yearly cash contribution margin could scale to $37 Million

    At 700 PH/s our estimate of Prop Mining yearly cash contribution margin could scale to $37 Million (Sin000s) Reference Estimated Monthly Revenue at 700 PHis (Prop Mining) $4,461 (i) from previous slide Year-to-date November 2021 Prop Mining Cash Contribution Margin (%) 76% =I) Discounted Prop Mining

20. Slide 20: Consolidated revenue and cash contribution margin at ~1 EH/s

    Consolidated revenue and cash contribution margin at ~1 EH/s (sh 0003) At LEH/s Revenue Monthly Yearly Hashrate (PH/s) Prop Mining a Hosting 6728083 300 Total Revenue 35is3 S61597 1000 Contribution Margin ($) Prop Mining 3423 a7ara Hosting 235 2822 Total Contribution Margin $3,358 $40,296 Contributi

21. Slide 21: Our cash contribution could exceed $40 million at ~1 EH/s

    Our cash contribution could exceed $40 million at ~1 EH/s Annualized Cash Contribution Margin (Non-GAAP)! $40206 Oct21 Novi" Mar 22" ($in0005) a Jan 21 Feb21 Mar 21 Apr May21Jun22Jul21_ Aug? Sop2t

22. Slide 22: A look at the current business environment

    A look at the current business environment a Supply chain and logistics continue to be a challenge D_ Issues with timing and quality a Orders for inexpensive but critical items need to be managed aS As we ramped and tested Sophie (Anaconda) this month, we took the facility down for several days to i

23. Slide 23: Important developments across our facilities

    Important developments across our facilities go TNT We continue to optimize equipment mix at this mature facility © 11.4 PH/s as of December 9" Continues to energize (Live Feed: Project Sophie - Soluna (solunacomputing com) © Ontarget to ramp through Q4 © Team aggressively managing supply chain bott

24. Slide 24: Our upcoming communication dates

    Our upcoming communication dates Next monthly flash update will be released before the open on January 17th, 2022 ® © We will release our key operational milestones for next year and a detailed financial earnings power illustration for next year before the open on January 19th, 2022 Have a great hol

25. Slide 25: November Flash

    SOLUNS, November 2 Flash

26. Slide 26: Consolidated Soluna Computing Non-GAAP Historical Financials

    Consolidated Soluna Computing Non-GAAP Historical Financials) eciceyDieet Cortet Adjusted Cot of Cryptocreney Reverse 2 84h a7 | apr2t_Moy21_n21 | q2at | su21 Augar_sep21 | g32i | 0c22_Nov7 | Now2a 005 | ssco sere sero [gxesr | sie Goes gsm [saase [szua2 s2002 | sa704 95 | sco cia a7 | xos7 | aoe 59

27. Slide 27: Consolidated Soluna Computing Operating Metrics

    Consolidated Soluna Computing Operating Metrics!) Key Operating Metres QI2E | Apr2t_May21 Jun 2i [Q22A] tui 21 Aug21 sep21 [QV] oc 21 Nov21 [PTOZI™ Taw Deployed Tes | si 327 342 | 33a.) 328 ais 715 | 485 [i501 2009 | 746 Prop Mining ass | 334 327 342 | 334 | 328 381 34a | 352 | amt 1201 | S16 Hosted

28. Slide 28: Edith (TNT): Non-GAAP Historical Financials

    Edith (TNT): Non-GAAP Historical Financials Aor2_ Moy 24 _hun2n [ERT] 22 techy ec Catt mw io a fas fia Adj Corto Cryptic Reverse" yun cun [EEE] SS So7 $a | aoe | en ash corbin Magan Fs ep Operating Mati [REBT] sor2s say2t an [GFR] 21 anya sepa [GER] on:21 nov 28 POH TR Desoyes Te} ae ae ame) age] ts

29. Slide 29: Sophie (Anaconda): Non-GAAP Historical Financials

    Sophie (Anaconda): Non-GAAP Historical Financials oman 3 Continues to energize iootantCnpteameey Rave neue, ~SE Cooncotton ars el © On target to ramp through Q4 © Team aggressively managing supply chain bottlenecks Kev oprting Meier oat vov2t FOB] — 5167.66 PH/s on December 9** nt 286 Poa tom 700 |

30. Slide 30: Marie (Python): Non-GAAP Historical Financials

    Marie (Python): Non-GAAP Historical Financials crite Carte Ade Cont of ryptcuenc Revenue pry 2 | sprar_oay21 uns | qz2n | n22 sugar separ | ga2t | ort21 Novas | Navan sive | 5199 S202 $207 | gece [sxx st00 sear |snaca [suave cxz07 [sar7e aoe | so9 262207 | oa | arr ase aor [ante [70 sos | a7 o@ fo o

31. Slide 31: Marie (Python): Hosting JV Non-GAAP Historical Financials

    Marie (Python): Hosting JV Non-GAAP Historical Financials) ($10 000 fue FEAT] estate Estmate| YD Jul21_Aug21_sep21 | qa2i | 0421 _Nov21 | Nov2a Revenue an ca4r) so s1oe 24s | 340 | sear $672 | su.503 Electy/Diet Costst 0 8 ass | tee | 253 a2 | 7a Overhead Cost o 0 ofofeo ofo ‘Adjusted Cost of Crypto

32. Slide 32: Marie (Python): Operating Metrics

    Marie (Python): Operating Metrics”) tw Key Operating Metrics: [QUE] Apr21_May21 Jun 21 [Q22I™] Jul 21 Aug 21 sep 21 [Q3ZI™] oct21 Nov 21 fTDZI™ TW Deployed ‘ooo | tél isi i162] 18) 149236 sai) 309 | 880 i067 | eas Prop Mining ooo | 161 151 162 | 158 | 149 204 174 | 176 | 250 259 | 129 Hosted MW (Leg

33. Slide 33: Appendix

    D Appendix

34. Slide 34: Our data centers are named after catalyzers

    Our data centers are named after catalyzers mw, (9 Edith a 4 Anaconda Sophie 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 employed as an electrical engineer at General

35. Slide 35: Consolidated Non-GAAP Historical Financials With Legacy Hosting

    Consolidated Soluna Computing Non-GAAP Historical Financials With Legacy Hosting ecetyve Coset Aust Cat ot Cpteneency even 2 ac 21 | spr21_may2r nna | qzas | stzr sugar _sep2e | qaas | oer21 ovat | nov2n 205 | ose see sero |sxasr | sese sxzce c22ee [foam [aay on [fanom gos | soo ie 70 [ar | aoe x0 c

36. Slide 36: Consolidated Operating Metrics With Legacy Hosting

    Consolidated Operating Metrics With Legacy Hosting Key Operating Meties: — [QH2L] Ape2t May21 Jun21 [Q22U™] Jul 21 Aug21 sep21 [QSZI™] oct 21 Nev21 [FOI TaW Deployed Tes | 338327 saz aaa} 328 test —ise7 ] aos | 2201 a6 | BI9 Prop Mining ies | 33e 327 342 | aaa | 328 ami aaa | 352 | a71 20 | 376 Host

37. Slide 37: Marie (Python): Non-GAAP Historical Financials With Legacy Hosting

    Marie (Python): Non-GAAP Historical Financials With Legacy Hosting am | peat yar amas | gaan | wa (0031 _Wor2t | Novat ioe [iss sar sao7 [sess | snr fuses sxaes [soon ee | ea G2 or | eee | 2 3am ofe o efoe|o oa a sa | sso sa a7 | ime | sre ser sez2 | 52799 wo |o 2 2 |e | o ess | su0 oto co oc flo]o

38. Slide 38: Reconciliation of non-GAAP results

    Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures

39. Slide 39: Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue

    Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 12021 ($io00e suse aos Product revenue (GAAP) 30 7 7 3 7 ra 30 13a Cryptcareny revenue (GAAP) ser sie 50 so | soos | 50 so | S005, product evenue (GAAP) ° ° ° ° ° 452 ° 452 Total cost of eyptocuerency revenue (

40. Slide 40: Reconciliation from Revenue and Cost of Revenue to Contribution Margin

    Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) qi2021 (icons ees) ee | aT ie Saplne Corporate [Tour | MI] Carports Carseat Product ovenue (GAAP) 30 30 30 3 30] Siss7_] so] Sasa Cryptocurency revue (GAAP) sen soe $0 so | sss | so so $095, Cost ofrevee (GAAP) 30 Sa a

41. Slide 41: ot aust stems >

    22021 ot aust stems > Eat Ware Sophie Corporate [Total |__| Corponte Fomaiated Product revense (GAAP 7 0 0 3 30 6a7 7 TIT Cryptocurency revenue (GAAP) soa $669 $0 so | sts | so so | stes7 (Cos of eyptocreney revenue (GAAP “otal ost of eryptocirency revenue (GAAP) $275 526881 ae a oS Cost ofrevene GA

42. Slide 42: Reconciliation from Revenue and Cost of Revenue to Contribution Margin

    Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Product revenue (GAAP) Cryptocurency venue (GAAP) Cost of revenue (GAAP) Contribution Margin Now GAAP}* 922021 Cae computing] 7 0 3 2 7 BAT 2 TEAT sous $6590 so | suss7 | $0 so | $1657 sas_—Sa68 30505] S502 30 Soar Sas

43. Slide 43: Reconciliation Of Non-GAAP Results

    Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue 932021 (eins nua sac > air Sophe Corpses [Teal [| Capa [coraaTan Produc revenue (GAAP) 7 7 7 7 rao 7 Tae Ccyptocurency evens (GAAP) 905 30 so | ssa | so so | soaze Revenue (Non-GAAP) os sae 5 arses sims | 0S

44. Slide 44: Reconciliation Of Non-GAAP Results

    Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 32021 nooo rate ee Product evenue (GAAP) 7 0 3 | ase 60 Crptocrency evenue (GAAP) ss gaz 60 so | suze | go so | saaze orto enpiocunensy ven AAP DectniyDvect co uo 1208 ° ° 142

45. Slide 45: Reconciliation to Contribution Margin & Cash Contribution Margin

    Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) (6io00e waa Produc revenue (GAAP) Cryptocureney oven (GAAP) Cost ofrevense (GAAP) Contiton Margin Non-GAAP)" a2 Contribution Margin Now GAAP) 32021 eee Sie Cape [rear a copa em sos san so | s

46. Slide 46: Reconciliation Of Non-GAAP Results

    Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Product revenue (GAAP) Crypocirrencyrevense (GAAP) Revenue Now GAAP) YTD Nov 2021 7 3 3 7 7 7 SEBO suas seo07 susan go | sizoze | 50 so | sino2e Tas __ sass || seo aos

47. Slide 47: Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue

    Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Product evan (GAAP) Ceyptomrrency evens (GAAP) ecwityDeecteon? “Total cost of eryptocrenc eve (GAAP) Cont ofrevense (GAAP) Aajusted Now GAAP Cos of Revense ** Aaja Now GAAP Cost of Revense* YTD Nov 2021 7 7 7 a

48. Slide 48: Reconciliation to Contribution Margin & Cash Contribution Margin

    Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) ‘AD N08 Cc sanatomeaing tid —— —— Sam a5 aa aa aie]

49. Slide 49: The future of renewable energy is computing.

    The future of renewable energy is computing.

50. Slide 50: Learn more at solunacomputing.com

    Rare MEGAWATT Learn more at solunacomputing.com

Soluna Holdings — Corporate Update (December 2021) on 6ix