Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Corporate Update (January 2022)
47 slides from Soluna's corporate update, Jan 21, 2022
Slide 1: Business Update - December Flash, January 2022
SOLUN” | S_LUN FowpInes COMPUTING Decemb Flash January 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 inthis presentation has been prepared by Soluna and is general background information about Soluna’s activites, current as atthe date ofthis presentation and s provided for iformation purposes only. k should be read in conjunction with Soluna’s period and
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 a O *& @ Alignment of Interests & Transparency Private equity frm owns 30948 High Velocity Execution Senior Brookstone personnel involved in active executive capacity Focus on Return of Invested Capital (ROIC) & Capital Discipline Long-Term Strategy Beyond Crypto
Slide 7: We buy curtailed energy from renewable power plants
We buy curtailed * ‘ energy from ’ renewable power* plants and convert it * to clean, low-cost global computing. cess energy from Batch-oriented _ ‘Computing renewable sources like cryptocurrency entegy’:
Slide 8: The opportunity beyond crypto
The opportunity beyond crypto is Scientific'reseal
Slide 9: Agenda
Agenda In this presentation, we will be covering the following items: Business Update December results in detail Ss S
Slide 10: Slide 10
Slide 11: Business Summary
Business Summary December 2021 Hashrate continues to scale | We will release 2022 Revenue increased and expect to hit 1 EH/s by | Earnings Power despite an 18% decrease | the end of March (+-30<ay) | Illustration to investors in average BTC price on Wednesday, January D In 2022, adding 100 MW of | 4
Slide 12: Operational Updates
Operational Updates As of December 31st % Scaled to 25 MW and fully energized Sophie ® Scaled to 21 MW Vit > Tornados in KY made transformer upgrades Marie impossible in December > Will energize additional 4 MW in January fora total of 25 MW > Procured electrical infrastructure D Hired necessary con
Slide 13: Energized MW...
_* Energized 25 MW... Fa
Slide 14: Our hashrate continues the ramp to EH/s
Our hashrate continues the ramp to 1 EH/s Remainder of growth willbe Prop Mining increasing by -98% Consolidated Hashrate (SHA-256, PH/s) f Our Hosting IV commitment is fulfilled : eo Bo -—_ -—_ = — —_ ‘Apr 2021 May2021 Jun 2021 ly 2021 Aug 2021 Sep2021_ Oct 2021. Nov2021. Dec 2024, smHosted Vm Prop
Slide 15: A closer look at December
A closer look at December The tornado in Kentucky forced us to shut Sophie down and significantly reduce operations at Marie for 4 days D> Allour employees were safe D> None of the equipment was impacted D> Our team secured and funded the gepleyment: of a 2 MW generator for wastewater treatment faci
Slide 16: Impact of Tornado on December site-level economics
Impact of Tornado on December site-level economics ($in 0005) Revenue on canny Prop Mining Hosted V Cash Contribution Margin pue-caary Prop Mining Hosted V ta Estimate ‘Sophie Marie Eaith | [Combined Eztimate Tornado | Estimate | [Estimate Tornado | Estimate | [Estimate | |Pro-Forma| Dec 21__Impact*
Slide 17: Cash Contribution Margin Run-Rate
Cash Contribution Margin Run-Rate December 2021 Revenue increased despite an 18% decrease in average BTC price between November ($60,621) and December ($49,263) Impact of Tornado at Marie & Sophie Annualized Cash Contribution Margin" (Non-GAAP) ast ean . oa 2 961 7 $s $5849 i= $7184 sss same 88 fun
Slide 18: Important developments across our facilities
Important developments across our facilities We continue to optimize equipment mix at this mature facility 9.70 PHls as of January 14% ve Scaled up to 25 MW and fully energized by December 31* PS a Sophie © 206.36 PH/s as of January 14". Site continues ramp ‘We will continue plugging-in miners upon
Slide 19: Soluna
SOLUNZ,
Slide 20: Consolidated Soluna Computing Non-GAAP Historical Financials
Consolidated Soluna Computing Non-GAAP Historical Financials“ (81000 ed “ae | Rea "ABAT|estnste Estate Estate Ese] Ete uz | @22i | 21 _Aug21 Sep21 | @a2i | oat _Nov21 pec21 | Qe2i | FAL Revenue pcan soos |sies7 sane soca saat | gz3ee |satez szesz $3203 | sa017 |si3036 Prop Mian 905 | 1657 | ao 53963
Slide 21: Consolidated Soluna Computing Operating Metrics
Consolidated Soluna Computing Operating Metrics” Key Operating Metrics: Qi2i [Q22A] sui21 Aug21 Sop 21 [Q32I™] Oct21 Nov21 Dec21 [Qazi] FYZI™ “Avg. MW Deployed ies | 334 | 328 413 715 | 485 | 1501 2009 2431 | 1980) 933 Prop Mining 163 | 334 | 328 361 348 | 352 | 871 1201 1618 | 1230 | 639 Hosted MW
Slide 22: Edith: Non-GAAP Historical Financials
Edith: Non-GAAP Historical Financials @ (Sn 000s (suse ‘Aug 21 Sep23 ["Q32H | Oct21_Nov2i_Dec2i Revenue 35 28k “ao? Blew Diect Costst Overhead Coste™ Adjusted Cost of Cyptocurrency Revenue 1" pois Cash Contribution Margin pcx) Cash Contribution 6 smo Cunt wrt npc nD Ep Key Operating Metres: Jul21 Au
Slide 23: Sophie: Non-GAAP Historical Financials
Sophie: Non-GAAP Historical Financials g ——— —— 0ct21 Nov2i de2i | géa1 | Frat Facility fully ramped up on — Sar Toate ae pa : Blectricity/Direct Costs* 182 159-305 | 726 | 726 December 31%, 2021 pane ote Cc Rene encay 425861064524] San / goon] 0 Due to Tornado in Kentucky, Cash Contribution Margin
Slide 24: Marie: Non-GAAP Historical Financials
Marie: Non-GAAP Historical Financials!) ‘soon nm ‘a Rea [rar Lanz | gaat iat _Avg21 sep2i | 9321 evens pncn 104 | 6660 | $237 500 scar | exe Prop Mang roe | oo | 217 oe wor | aaa ecrcyiect Cartet ssi 7s 0 sas | sone PropMnng 2 |i | 7% 1 1 | 200 erend Cont 2 oe Premera ° st Ate Con of Cyptocarency Re
Slide 25: Marie: Hosting JV Non-GAAP Historical
Marie: Hosting JV Non-GAAP Historical (Sin 000s) Uneusted ‘Aetual |Estimate Estimate Estimate [Estimate [Estimate] Jul21 Aug 21 Sep21| Q321 Oct21 Nov21 Dec2i| Qazi) FY21 Revenue ron catr) $0 $104 $245 | $349 Sasi $672 $602 | $1,755 | $2,108 Electricty/Diect Costs 0 28155 | 84 | 253° 312326 | 890 | 1
Slide 26: Marie: Operating Metrics
Marie: Operating Metrics“) Key Operating Metrics: Qiai [qzai™ ‘Avg, MW Deployed 000 | 158 Prop Mining 000 | 158 Hosted MW (Legacy) : : Hosted V : . ‘Avg, Hashrate (SHA-256, PHIs) - | 1280 Prop Mining - | 1280 Hosted IV - - ‘Avg, Hashrate (Serypt, GHis) 000 | 22190 ‘Avg BTC Price 45336 | 46.498 BTC E
Slide 27: Appendix
D Appendix
Slide 28: Our data centers are named after catalyzers
Our data centers are named after catalyzers Anaconda 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 Electric ir 1921. The f
Slide 29: Financials With Legacy Hosting
Se ee ea See ‘Inanciars With Legacy Hosting [Rear | mea [ARIAT estate Esimate estimate Enna Estimate u2i | q22t | iui21 Aup21 sep21 | q321 | oct21_Nov2t Oee21 | gaat | Fvat Revenue 005 | s1657 | s4o¢ 1.308 si.264 |gaaze | 5237 $2011 a40 | gases |s14a72 Prop Ming 995 | 1657 | 4oe 839 606 | 2018 | 166
Slide 30: Consolidated Operating Metrics With Legacy Hosting
Consolidated Operating Metrics With Legacy Hosting Key Operating Metrics: Qi2i [Q2zI"| su21 Aug21 Sep21 [Q321™] Oct21 Nov2i Dec21 [Qazi] FAI ‘Avg, MW Deployed Ges | 334] 328 i432 1567 | i209 | 2221 2461 2736 | 2473 | 979 Prop Mining 163 | 334 | 328 381 348 | 352 | 871 1201 1618 | 1230 | 479 Hosted M
Slide 31: Marie: Non-GAAP Historical Financials With Legacy Hosting
Marie: Non-GAAP Historical Financi: is With Legacy Hosting (82009 am ‘ett | Aca ‘tia estimate Estimate Esinate inate qui q22t | 1421 Aug rn | @a2t Oat Nov Revenue sioe | se60 | 217 soa s2219 $1569 siass s1.945 Prop Mian ros | ess | 217 ase ata | 793595 Hosting o fo |o sx ios | 76 8st ectctDirect Con
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 rn
Slide 33: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 12021 {imoton onan “Solana Computing Edith “Mave Sophie Corporate | Total | MT | Corporate [Consolidate Product revenue (GAAP) 30 30 30 30 so Sisa7 | $0 | (St3a7 | Cryptocurre
Slide 34: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results jon from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Reconcili Product revenue (GAAP) Cryptocurency revenue (GAAP) Costof product revenue (GAAP) Cost of eryptocurency revenue (GAAP) Cort of revenue (GAAP) Depreciation Contribution Margin (Non-GAAP
Slide 35: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 22021 (in0000 nase) Solana Computing Edith Marie Sophie Corporate [Total MT | Corporate Product revere (GAAP) $0 30 30 so} $0 | «Sia? | $0 Cryptocurency revenue (GAAP) sees 66
Slide 36: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q2 2021 ($i 0008 suas) Solana Computing Faith Marie Sophie Corporate | Total | _MTT Product revenue (GAAP) $0 30 30 30 $0) «S167 Cyptocurrency revenue (GAAP) sees $669 $0 so | si6s7 |
Slide 37: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Product revenue (GAAP) Ccyptocurenc revenue (GAAP) ess Legacy Hosting Revenue Revenue (Non-GAAP) 932021 Soluna Computing Marie Sophie Corporate | Total 30 30 30 30 $2219 $0 so | ssaze 757 ° ° 157 sia «80 30) $236
Slide 38: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 932021 nao gta Sos Comping Eat aie Sophie Coparte [Taal | Wr | comport [Coma Prot even (GAAP) oS) S| YC Crptocarency even (GAAP) sos sans gS go| saa | go | go | Sate ot ot pee
Slide 39: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) {not oud Product revenue (GAAP) Cryptocurency revenue (GAAP) Cost of rout revenue (GAAP) Cost of eryptocurency revenue GAAP) Costof revenue (GAAP) Depreciat
Slide 40: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Recon (sinc009 rss Product revenue (GAAP) Ccryptocrrency reve (GAAP) eee Legbey Hortng Revenue Revere (Non-GAAP) tion from GAAP Revenue to Non-GAAP Revenue 942021 Mave Soplie Corporate | Total 30 $0 30 30 4900 §2.772 $0 | $8895 979 ° ° 979 wae <a7z «CRT 30 $2268 se
Slide 41: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) 42021 (inom asta Solana Computing Eat) Mae Sophie Comoate Produc revenue (GAAP) 30 30 30 30 ‘cryptocutency revere (GAAP) sese 4960 $2772 80 ont of produt revenue (GAAP) ° ° °
Slide 42: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) 42021 Tah Ware Sepiie—Copoate [Teta | Mi Corporte Prat revenue (GAAP) 2 o 30 so so | $2265} so Crpocreny evens (GAAP) soos suse gx7 so | gases | so <0 ‘Cont
Slide 43: Reconciliation Of Non-GAAP Results
Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Fy 2021 0 Uo) Solana Computing Edith Marie “Sophie Corporate [Total | MT | Corporate [Canela Product revenue (GAAP) 30 30 $0 $0 3 | S7a96 | So) «§7.196 Cryptocurrency revere (GAAP) Saou g79s2 2772 $0 | Stara | 80
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) Product eve (GAAP) ‘cyptocutency revenue (GAAP) ost of product evenue (GAAP) contol eyptocarenyrevenv (GAA2): ‘Total cos of eyptocureny revenue (GAAP) Aajuted Non-GAAP Cort of
Slide 45: Reconciliation Of Non-GAAP Results
Reconc ition Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Product even (GAAP) Crptocarency revere (GAAP) Cost eptoiency reverse GAAP) Contofrevenue GAAP) Contbaton Margin Non-GAAP) usncontribwton Marin on- GAAP Cush
Slide 46: The future of renewable energy is computing.
The future of renewable energy is computing.
Slide 47: Learn more at solunacomputing.com
Learn more at solunacomputing.com