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Financial Summary:

Key financial results for the first quarter include:

• The strong first quarter results of $12.6 million in revenue represented a 24% increase as compared to the fourth quarter of 2023 and an increase of 307% compared to the first quarter of 2023.

• Cryptocurrency Mining Revenue increased by approximately $3.6 million - compared to the first quarter of 2023, due to a significant increase related to the average price of Bitcoin increasing by 134%. In addition, the dollars per Petahash per day was 26.6% higher.

• Data Hosting Revenue increased by approximately $5.0 million - compared to the first quarter of 2023, primarily related to the energization and deployment of hosting customers at Project Dorothy 1A in the second quarter of 2023.

• Gross Profit improved by nearly $7.0 million - as operations pivoted to Data Hosting and Project Dorothy reached full energization, costs of revenue either met or exceeded expectations, enabling strong Gross Profit growth from ($0.1 million) for the first quarter of 2023 to $6.9 million for the first quarter of 2024.

• Record Adjusted EBITDA of $5.1 million – Adjusted EBITDA (non-GAAP) ramped from ($2.9 million) to $5.1 million, an increase of $8.0 million driven by strong revenue growth and cost discipline.

• General and administrative expenses excluding depreciation and amortization decreased by approximately $366 thousand or 8% for the first quarter of 2024 - to $4.0 million from $4.4 million compared to the first quarter of 2023. Stock-based compensation costs were lower, at $656 thousand, for the first quarter of 2024.

• Legal fees were reduced by approximately $469 thousand - compared to the three months ended March 31, 2023, mainly attributable to fewer legal fees associated with Project Dorothy 1A and 1B with Spring Lane.

• General and administrative stock-based compensation expense decreased by approximately $166 thousand - for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, due to an acceleration of the Company’s grants and awards that occurred in May of 2023

• Investor relations decreased by $92 thousand - compared to the three months ended March 31, 2023, due to expenses associated with higher investor acquisition programs, in addition to the Special Meeting held in March 2023.

• Accounting for warrant modifications - a requirement for Shareholders to vote on modifications to warrants related to the Convertible Loan Note 4th Amendment during the period gave rise to a liability during the first quarter. The impact was to reduce Additional Paid in Capital (APIC) and establish a Current Warrant Liability which was revalued to $6.0 million as of the end of March 2024.

The unaudited financial statements are available online, here. A presentation of this First Quarter Update can also be found online, here.

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Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

About Soluna Holdings, Inc (SLNH)

Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516765827/en/

Contacts

John Tunison
Chief Financial Officer
Soluna Holdings, Inc.
jtunison@soluna.io