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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>YE results and recent operating update show continued execution on all fronts.</li><li>Soluna reported $1 million of adjusted EBITDA in 4Q23, up from $405K in 3Q23 and negative EBITDA in 4Q22, as Project Sophie and Project Dorothy 1A&amp;B again delivered solid results.</li><li>4Q23 revenue of $10.1 million was up 75% from 3Q23, helped by a combination of new contracts and also a full quarter of Project Dorothy 1.</li></ul>

YE results and recent operating update show continued execution on all fronts.Soluna reported $1 million of adjusted EBITDA in 4Q23, up from $405K in 3Q23 and negative EBITDA in 4Q22, as Project Sophie and Project Dorothy 1A&amp;B again delivered solid results.4Q23 revenue of $10.1 million was up 75% from 3Q23, helped by a combination of new contracts and also a full quarter of Project Dorothy 1.

Soluna Holdings, Inc. - Continued Strong Operating Results; New Projects Moving Ahead

<ul><li>Announces hosting agreement with GPU startup for AI computing.</li><li>Soluna announced a co-location agreement with an AI-focused GPU startup that will locate its GPU units in Soluna’s existing modular data center at the 25MW Project Sophie in Kentucky.</li><li>New contract is another milestone in the company’s growth into AI.</li></ul>

Announces hosting agreement with GPU startup for AI computing.Soluna announced a co-location agreement with an AI-focused GPU startup that will locate its GPU units in Soluna’s existing modular data center at the 25MW Project Sophie in Kentucky.New contract is another milestone in the company’s growth into AI.

Soluna Holdings, Inc. - New Hosting Deal Expands AI Initiative

<ul><li>Soluna’s AI datacenter initiative advancing. Progress continues on the ‘Helix’ AI pilot that is part of Project Dorothy 2, with its engineering team working on the new design with a leading datacenter design firm.</li><li>In addition, Soluna has retained BitOoda Technologies LLC as a financial advisor to assist with raising capital for the new AI business venture that we expect will house the company’s AI-related assets going forward.</li><li>We continue to see AI as driving the next phase in Soluna’s growth, opening it to a market opportunity well in excess of the still-growing Bitcoin mining market.</li></ul>

Soluna’s AI datacenter initiative advancing. Progress continues on the ‘Helix’ AI pilot that is part of Project Dorothy 2, with its engineering team working on the new design with a leading datacenter design firm.In addition, Soluna has retained BitOoda Technologies LLC as a financial advisor to assist with raising capital for the new AI business venture that we expect will house the company’s AI-related assets going forward.We continue to see AI as driving the next phase in Soluna’s growth, opening it to a market opportunity well in excess of the still-growing Bitcoin mining market.

CLIMATETECH & SUSTAINABLE INVESTING - Soluna Holdings, Inc.

<ul><li>CEO John Belizaire joined WTR’s Tim Regan and Graham Mattison to talk about Soluna’s impressive business turnaround in 2023, including the projects that are online today and their growing adjusted EBITDA contributions.</li><li>Belizaire also talked about new projects under development, incremental revenue sources, and the company’s recently announced AI pilot at Project Dorothy</li><li>2023 – the turnaround of Soluna. Belizaire talked about the transformation of the company in 2023, coming from the depths of the crypto winter and regulatory delays, to bringing the company’s flagship Project Dorothy online, securing partners at the project level, and then being selected for the 166-MW Project Kati.</li></ul>

CEO John Belizaire joined WTR’s Tim Regan and Graham Mattison to talk about Soluna’s impressive business turnaround in 2023, including the projects that are online today and their growing adjusted EBITDA contributions.Belizaire also talked about new projects under development, incremental revenue sources, and the company’s recently announced AI pilot at Project Dorothy2023 – the turnaround of Soluna. Belizaire talked about the transformation of the company in 2023, coming from the depths of the crypto winter and regulatory delays, to bringing the company’s flagship Project Dorothy online, securing partners at the project level, and then being selected for the 166-MW Project Kati.

Soluna Holdings, Inc. - Soluna Positioned for Revenue/EBITDA Growth in 2024 as New Projects Ramp

<ul>
<li>Reports 3Q23 revenues of $5.8 million and positive adjusted EBITDA of $405K, up from $2.1 million and negative ~$2 million, respectively, in 2Q23.</li>
<li>The improved results reflect additional contributions from new projects that began ramping up in 2Q23, along with lower SG&amp;A that reflects the cost-cutting efforts enacted earlier in 2023.</li>
<li>We note that comparisons to 3Q22 are not meaningful given the company’s pivot to mostly hosting contracts at its data centers rather than proprietary Bitcoin mining where it recognized both higher revenues and costs.</li>
</ul>


Reports 3Q23 revenues of $5.8 million and positive adjusted EBITDA of $405K, up from $2.1 million and negative ~$2 million, respectively, in 2Q23.
The improved results reflect additional contributions from new projects that began ramping up in 2Q23, along with lower SG&amp;A that reflects the cost-cutting efforts enacted earlier in 2023.
We note that comparisons to 3Q22 are not meaningful given the company’s pivot to mostly hosting contracts at its data centers rather than proprietary Bitcoin mining where it recognized both higher revenues and costs.


Soluna Holdings, Inc. - 3Q Results Show Turnaround Is Complete

United States

Soluna Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, builds, owns, and operates modular data centers that eliminate wasted energy and deliver revenue to renewable energy producers. Soluna Holdings serves customers worldwide.

Soluna Holdings (SLNH US)

Soluna Holdings, Inc. - Continued Strong Operating Results; New Projects Moving Ahead

4Q23 revenue of $10.1 million was up 75% from 3Q23, helped by a combination of new contracts and also a full quarter of Project Dorothy 1.

Water Tower Research

Soluna Holdings, Inc. - New Hosting Deal Expands AI Initiative

Soluna announced a co-location agreement with an AI-focused GPU startup that will locate its GPU units in Soluna’s existing modular data center at...

Water Tower Research

CLIMATETECH & SUSTAINABLE INVESTING - Soluna Holdings, Inc.

Progress continues on the ‘Helix’ AI pilot that is part of Project Dorothy 2, with its engineering team working on the new design with a leading...

Water Tower Research

Soluna Holdings, Inc. - Soluna Positioned for Revenue/EBITDA Growth in 2024 as New Projects Ramp

CEO John Belizaire joined WTR’s Tim Regan and Graham Mattison to talk about Soluna’s impressive business turnaround in 2023, including the projects...

Water Tower Research

Soluna Holdings, Inc. - 3Q Results Show Turnaround Is Complete

Reports 3Q23 revenues of $5.8 million and positive adjusted EBITDA of $405K, up from $2.1 million and negative ~$2 million, respectively, in 2Q23.

Water Tower Research