ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ:SLNH), a company specializing in the development of green data centers for computing-intensive applications, such as Bitcoin mining and AI, has announced updates on its project site-level operations and developments for September.
The company has signed a term sheet for Project Rosa, which is expected to add 187 megawatts (MW) of sustainable energy capacity to its operations. This move is aimed at bolstering Soluna's capabilities in AI and Bitcoin mining powered by renewable energy. Additionally, the end of the Four Coincident Peak (4CP) period in September saw the successful deployment of Soluna's proprietary MaestroOS™ control system, which met all demand requirements.
Soluna's ongoing projects include Project Dorothy, which is divided into phases 1A and 1B, each providing 25 MW for Bitcoin Hosting and Prop-Mining, respectively. These phases have undergone optimization improvements including building insulation, heat shielding, and power infrastructure cooling solutions. Moreover, Project Dorothy 2, a 48 MW Bitcoin Hosting facility, is making progress with site grading nearing completion and civil construction teams working on concrete pads for the initial phase of the project. The company has received all long lead power infrastructure and is finalizing dates for substation interconnection work, scheduled to begin in December.
New initiatives such as Project Grace and Project Ada have kicked off, with the former focusing on AI Cloud/Hosting and the latter on AI Cloud in collaboration with HPE, featuring six proof of concept (POC) projects. The demand for additional computing resources is evidenced by a waitlist for an extra 84 nodes, or 672 GPUs.
Project Sophie, a 25 MW Bitcoin Hosting site with profit share and AI Hosting, has maintained high operational levels, while preparations for an 8.8 MW fleet upgrade and a 3.3 MW expansion are set for October. In addition, Project Kati, a substantial 166 MW venture, is advancing with submitted meter design proposals and ongoing land lease negotiations.
Soluna Holdings' forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, and the company cautions that these statements involve risks and uncertainties.
Soluna's approach to integrating renewable energy with high-performance computing aims to energize a greener grid and provide cost-effective, sustainable solutions. The company's updates underline its commitment to expanding its green data center footprint and its role in the renewable energy and computing sectors. This article is based on a press release statement.
In other recent news, Soluna Holdings has reported a substantial 362% increase in revenue in Q2 2024. The company has also secured significant funding, including a $25 million Standby Equity Purchase Agreement with Yorkville Advisors Global L.P., and $30 million for the expansion of its flagship data center, Project Dorothy 2. Furthermore, Soluna Holdings has increased its credit facility to $13.75 million for its subsidiary, Soluna Cloud, and a $34 million cloud services agreement with Hewlett Packard Enterprises is expected to generate up to $80 million in revenue over the next three years.
Additionally, Soluna Holdings announced Project Rosa, a green data center project offering up to 187 megawatts of capacity, powered by an adjacent 240 MW wind farm in Texas. The company has also decided not to proceed with prepaid equity advances under a previously executed Standby Equity Purchase Agreement (SEPA) with YA II PN, LTD, instead opting to adhere to the SEPA's original terms.
These recent developments, advised by Northland Capital Markets, BitOoda Technologies, and Imperial Capital, are part of Soluna Holdings' ongoing efforts to expand its green data center and hosting services. The company's various projects, including Project Dorothy 2, Project Sophie, and Project Kati, are making significant progress. Furthermore, Soluna Holdings has appointed John Tunison as its new Chief Financial Officer.
InvestingPro Insights
Soluna Holdings' ambitious expansion plans and focus on renewable energy-powered data centers are reflected in its impressive revenue growth. According to InvestingPro data, the company's revenue grew by a staggering 142.85% over the last twelve months as of Q2 2024, with quarterly revenue growth reaching an even more remarkable 367.84% in Q2 2024. This rapid growth aligns with the company's announcements of new projects and capacity expansions.
Despite the strong top-line performance, InvestingPro Tips highlight that Soluna is "quickly burning through cash" and is "not profitable over the last twelve months." This is evident in the company's operating income margin of -23.85% for the same period. These metrics suggest that while Soluna is aggressively pursuing growth, it's doing so at the expense of short-term profitability, which is not uncommon for companies in expansion phases.
Another relevant InvestingPro Tip notes that Soluna has "impressive gross profit margins." Indeed, the data shows a gross profit margin of 76.41% for the last twelve months as of Q2 2024, indicating that despite operational losses, the core business model has strong potential for profitability once the company achieves scale.
Investors considering Soluna should note that InvestingPro offers 8 additional tips for a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the company's volatile stock price movements and ongoing expansion efforts in the dynamic renewable energy and high-performance computing sectors.
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