Soluna Holdings Provides 2022 Earnings Power Illustration

·4 min read

Demonstrates Energizing 100MW, Scaling to 3EH

ALBANY, N.Y., Jan. 19, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH) (NASDAQ: SLNHP), the parent company of Soluna Computing, Inc. ("SCI"), a developer of green data centers for cryptocurrency mining and other intensive computing, today provided its 2022 earnings power illustration.

Michael Toporek, CEO of Soluna Holdings, stated, “Following a strong 2021, we are pleased to provide our 2022 earnings power illustration to help our investors fully comprehend the strength and potential of our business as our team continues to execute on our growth plan. As you will see in the illustration, even at significantly lower BTC prices, we will generate meaningful revenue and strong contribution margin. We remain fully focused on return on invested capital and are excited about our near-term growth objectives as well as our longer-term strategy beyond crypto.”

2022 Corporate Goals

  • Energize 100 MW - Develop and energize over 100 MW of net new data centers in the US. Upgrade existing facilities to maximize Exahash and production output

  • Scale 3 EH - Procure, upgrade and deploy mining equipment to increase the company’s combined Hashrate

  • Originate 600 MW - Expand development pipeline to add over 600 MW of additional BTM projects in the US and beyond with at least 100 MW outside the US

  • Seed 1 MW GPUs - Develop and energize a 1 MW Cryptocurrency facility with 100% GPUs and sign one contracted pilot customer to serve HPC computing loads

Earnings Power Illustration: Various BTC Prices

(in 000's)

Q1-22

Q2-22

Q3-22

Q4-22

FY22

Q1-23

Scenario 1: BTC is $20,000

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

Contribution Margin %

52.6%

52.8%

60.9%

66.5%

60.9%

68.8%

Run-Rate Contribution Margin

13,747

15,728

29,377

53,487

-

69,930

Scenario 2: BTC is $45,000

Total Revenue

10,328

14,612

22,223

35,300

82,462

42,755

Contribution Margin (Non-GAAP)

7,236

11,093

17,505

28,567

64,402

34,845

Contribution Margin %

70.1%

75.9%

78.8%

80.9%

78.1%

81.5%

Run-Rate Contribution Margin

28,945

44,374

70,022

114,268

-

139,378

Scenario 3: BTC is $60,000

Total Revenue

12,667

19,220

29,164

46,394

107,445

56,334

Contribution Margin (Non-GAAP)

9,575

15,702

24,446

39,662

89,385

48,424

Contribution Margin %

75.6%

81.7%

83.8%

85.5%

83.2%

86.0%

Run-Rate Contribution Margin

38,301

62,808

97,785

158,647

-

193,697

Combined Gross PH/s

1,000

1,261

2,001

3,008

3,008

4,000


A presentation and corresponding video is available on the Company’s website at https://www.solunacomputing.com/investors/updates/2022powerillustration/

About Soluna Holdings, Inc.

Soluna Holdings, Inc. (Nasdaq: SLNH) is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing intensive, batchable applications such as cryptocurrency mining, AI and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna’s MTI Instruments division manufactures precision tools and testing equipment for electronics, aviation, automotive, power and other industries. Both Soluna and MTI Instruments use technology and intentional design to solve complex, real-world challenges. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’

For more information about Soluna, please visit www.solunacomputing.com or follow us on LinkedIn at linkedin.com/solunaholdings and Twitter @SolunaHoldings.

Forward Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this communication, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Investor Relations:

Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com