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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>Soluna recently announced two significant deals to grow its business.</li><li>The first deal is an expansion of its partnership with Bit Digital (BTBT), while the second deal is a successful exit of Project Kati from the Electric Reliability Council of Texas (ERCOT) planning phase.</li><li>On February 18, Soluna announced that it had successfully exited the ERCOT planning phase for its Project Kati, which is expected to unlock up to 166 MW of new Bitcoin hosting and AI JV opportunities.</li></ul>

Soluna recently announced two significant deals to grow its business.The first deal is an expansion of its partnership with Bit Digital (BTBT), while the second deal is a successful exit of Project Kati from the Electric Reliability Council of Texas (ERCOT) planning phase.On February 18, Soluna announced that it had successfully exited the ERCOT planning phase for its Project Kati, which is expected to unlock up to 166 MW of new Bitcoin hosting and AI JV opportunities.

Soluna Holdings, Inc - Progress on Project Kati and Bit Digital Partnership...

<ul><li>Belizaire discussed the strength of the 3Q24 numbers (4Q24 earnings report is due soon).</li><li>Results included a 30% Y/Y revenue increase, an adjusted EBITDA flip from a loss of $4.5 million in 3Q23 to a profit of $3.5 million in 3Q24, and the development of the Soluna Cloud (for AI computing).</li><li>For 2025, Belizaire is looking at a growing set of projects moving to operation and revenue, including a growing pipeline, hitting 2.6GW of computing power (with demand for more), flagship Dorothy, and projects Kati and Rosa.</li></ul>

Belizaire discussed the strength of the 3Q24 numbers (4Q24 earnings report is due soon).Results included a 30% Y/Y revenue increase, an adjusted EBITDA flip from a loss of $4.5 million in 3Q23 to a profit of $3.5 million in 3Q24, and the development of the Soluna Cloud (for AI computing).For 2025, Belizaire is looking at a growing set of projects moving to operation and revenue, including a growing pipeline, hitting 2.6GW of computing power (with demand for more), flagship Dorothy, and projects Kati and Rosa.

Soluna Holdings, Inc. - CEO Highlights Growth Plans for 2025

Thematic (Sector/Industry)

<ul><li>Computing, and thus data centers, are becoming more critical to nearly every business (thank AI).</li><li>In this edition of Tech Talk, we focus on green and crypto data centers, highlighting their specific needs, characteristics, market dynamics, and leading vendors.</li><li>Simply put, a green data center uses many of the standard computer systems and networking equipment of other data centers, but with a strong emphasis on minimizing environmental impact. </li></ul>

Computing, and thus data centers, are becoming more critical to nearly every business (thank AI).In this edition of Tech Talk, we focus on green and crypto data centers, highlighting their specific needs, characteristics, market dynamics, and leading vendors.Simply put, a green data center uses many of the standard computer systems and networking equipment of other data centers, but with a strong emphasis on minimizing environmental impact. 

Tech Talk: Next-Gen Data Centers Green and Crypto Data Centers

<ul><li>Soluna Cloud has entered into a three-year managed services agreement with Hewlett Packard Enterprise (HPE), with $38-80 million in expected revenue over the contract, with the first 512 GPUs available today.</li><li>Soluna will manage a hydro-powered datacenter in collaboration with its strategic OEM partner and has secured NVIDIA H100 GPUs that will allow it to offer Generative AI workloads for enterprise customers and Generative AI labs.</li><li>The Soluna Cloud subsidiary has been funded by a non-dilutive $12.5 million credit facility, which the company expects will be the first tranche of funding for the growing business line.</li></ul>

Soluna Cloud has entered into a three-year managed services agreement with Hewlett Packard Enterprise (HPE), with $38-80 million in expected revenue over the contract, with the first 512 GPUs available today.Soluna will manage a hydro-powered datacenter in collaboration with its strategic OEM partner and has secured NVIDIA H100 GPUs that will allow it to offer Generative AI workloads for enterprise customers and Generative AI labs.The Soluna Cloud subsidiary has been funded by a non-dilutive $12.5 million credit facility, which the company expects will be the first tranche of funding for the growing business line.

Soluna Holdings, Inc. - Soluna Cloud Contract Unleashes New Business Line

<ul><li>214MW of new projects to more than double the existing 75MW in operation and further builds on Soluna’s impressive corporate turnaround.</li><li>In the past year, Soluna has launched its flagship Project Dorothy with both hosting (1A) and propriety mining (1B), moved to more profitable hosting contracts at its 25MW Project Sophie, began diversifying revenue through AI hosting at Project Sophie, and launched a new AI cloud venture and the Helix AI datacenter design.</li><li>In addition, the company has been adjusted EBITDA positive for the past two quarters, while the balance sheet has improved. </li></ul>

214MW of new projects to more than double the existing 75MW in operation and further builds on Soluna’s impressive corporate turnaround.In the past year, Soluna has launched its flagship Project Dorothy with both hosting (1A) and propriety mining (1B), moved to more profitable hosting contracts at its 25MW Project Sophie, began diversifying revenue through AI hosting at Project Sophie, and launched a new AI cloud venture and the Helix AI datacenter design.In addition, the company has been adjusted EBITDA positive for the past two quarters, while the balance sheet has improved. 

Soluna Holdings, Inc. - Major Milestones Reached in Expansion

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.

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Soluna Holdings (SLNH US)

Soluna Holdings, Inc - Progress on Project Kati and Bit Digital Partnership...

The first deal is an expansion of its partnership with Bit Digital (BTBT), while the second deal is a successful exit of Project Kati from the...

Water Tower Research

Soluna Holdings, Inc. - CEO Highlights Growth Plans for 2025

Results included a 30% Y/Y revenue increase, an adjusted EBITDA flip from a loss of $4.5 million in 3Q23 to a profit of $3.5 million in 3Q24, and...

Water Tower Research

Tech Talk: Next-Gen Data Centers Green and Crypto Data Centers

In this edition of Tech Talk, we focus on green and crypto data centers, highlighting their specific needs, characteristics, market dynamics, and...

Water Tower Research

Soluna Holdings, Inc. - Soluna Cloud Contract Unleashes New Business Line

The Soluna Cloud subsidiary has been funded by a non-dilutive $12.5 million credit facility, which the company expects will be the first tranche of...

Water Tower Research

Soluna Holdings, Inc. - Major Milestones Reached in Expansion

We see Soluna as being well positioned to execute on these growth opportunities with its leading suite of technological offerings and a team with a...

Water Tower Research

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