Soluna’s Project Dorothy 2 Prepares to Deliver $14M in Potential Operating Profit

Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, announced today Project Dorothy 2, its 50 MW data center co-located at a wind farm in Texas, has passed the modeling phase in the ERCOT Large Flexible Load approval process. Approval in ERCOT modeling is a significant step to begin the bidding process and finalize financing for this major expansion of the Company’s flagship project.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240314083214/en/

The financial model for Project Dorothy 2 was prepared internally based upon the same assumptions used by management in evaluating potential projects, which management believes are reasonable but are affected by factors beyond the Company’s control. (Graphic: Business Wire)

Bitcoin and AI Datacenters - Project Dorothy 2 will be the home of Soluna’s 48 MW Bitcoin Hosting expansion and its new 2 MW specialized AI data center, called Helix.

John Belizaire, CEO of Soluna Holdings, commented, “Through our experience successfully energizing our 50 MW first phase of Project Dorothy, we have a blueprint to bring Project Dorothy 2 online faster and more efficiently. Passing modeling allows us to now focus on building out Project Dorothy 2 for a mix of Renewable Computing applications, such as AI and Bitcoin mining.”

Compelling Financial Profile - Project Dorothy 2 is the second phase of Soluna’s flagship 100 MW data center, powered by renewable energy. It is expected to be one of the lowest-cost facilities of its kind in North America. According to the company’s financial modeling, Project Dorothy 2 has the potential to generate up to $14 million of additional annualized project-level operating profits¹ for the Company in Bitcoin Hosting revenue. The project forecasts an outstanding return on invested capital, returning capital invested in about 27 months.

Low Carbon Footprint - In late August 2023, the Company completed the construction and fully ramped Project Dorothy 1. A study done by a third party (REsurety) in early 2024 found the 50 MW site outperforms traditional data centers with an 18% lower carbon footprint while substantially reducing the burden on the electric power grid typically associated with traditional data centers. Project Dorothy 2 is on schedule to continue this trend of low carbon footprint data centers.