Soluna Holdings’ CEO John Belizaire Shares Roadmap to Profitability in Shareholder Letter

Soluna Holdings, Inc. (“Soluna” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, announced an open letter to shareholders from Soluna Holdings CEO, John Belizaire.

A longer version of the letter as well as the 2024 earnings power presentation can be found on Soluna’s website.

Open Letter to Shareholders from John Belizaire, CEO of Soluna Holdings, Inc.

Dear Shareholders,

As we close another year at Soluna, I am pleased to reflect on our significant progress and set forth our vision for 2024. Our mission to make renewable energy the primary power source, using computing as a catalyst, remains unchanged. With the drastic rise in the need for AI computing, it is more attainable now than ever before.

What Happened Last Year

In 2023, we diligently executed our four-pronged strategy, focusing on energizing our projects, optimizing cash flow, expanding our flagship operations, and growing our project pipeline. Here are the key milestones we achieved:

Energize Project Dorothy: We transitioned Project Dorothy from construction to full operations, energizing 50 MW across Project Dorothy 1A and 1B. Our partnership with Navitas to establish a proprietary Bitcoin mining operation proved fruitful, and we successfully sold an 85% membership interest in Project Dorothy 1A to Spring Lane Capital (SLC). This venture has raised capital and filled Project Dorothy 1A with 25 MW of strategic hosting partners.

Cash Flow and Process Optimization: Shifting our focus from proprietary Bitcoin mining to hosting, we secured 50 MW of hosting contracts across Project Dorothy and Project Sophie. We replaced underperforming deals with more profitable contracts and implemented a new ERP system to enhance efficiency and scalability. Our operating cash position grew from $1.2 million to $6.4 million by year-end.

Expand Flagship: We are moving forward with the development of the next 48 MW of our Project Dorothy data center, Project Dorothy 2, which cleared the ERCOT modeling process early in the first quarter of 2024. This makes the project shovel-ready.

Grow Pipeline: We signed a term sheet for a new 166 MW data center, Project Kati, integrated with a 300 MW wind farm. We advanced the project in the ERCOT planning process, setting a solid foundation for future growth.

Distinctive

Our reputation as a leading curtailment solutions provider continues to grow, with our brand now synonymous with innovative renewable computing solutions. Our unique behind-the-meter structure not only draws power directly from power plants or grids but also offers demand response services, optimizing costs for Bitcoin mining and future applications in AI and other high-performance computing (HPC) areas.